Condos are wonderful for various reasons. The one problem with them, however, is the fact that although they offer many benefits for residents, prospective buyers can have a difficult time trying to buy one.
This is isn’t a put-down by any means. Condos are a keen investment and provide a plethora of advantages for owners such as tax incentives and built-up equity. Both of these factors ensure strong financial backing for residents with a long-term commitment and have control over what goes on in the condo community. Then again, therein lies the crux of the issue.
“What?” readers might say, “How can condos possibly be problematic in any way?”
Regarding the point to which the opening paragraph alludes, getting into a condo successfully requires barreling through a battery of administrative red tape. This consists of ongoing documentation that serves as a means to evaluate credit reports, determine an applicant’s income and assess overall financial worth. This translates as: “in order to qualify for condo acquisition, one must have an absolutely perfect financial record and have lots and lots of money.” This is ironic, considering how low monthly payments are generally perceived to be for condos compared to renting an apartment, although that condition depends on the location and circumstances involved.
For many people struggling to survive in an economy where layoffs, discharges and unemployment are common, condo living is out of the question. Professionals are not unaffected by this either. Their otherwise stellar financial portfolios are marred by such a downfall. Throughout a period of economic despair, fewer people can afford such accommodations and the plethora of obligations that accompany them (see below).
Hence: the catch-22.
What good are the low mortgage rates, the financial incentives and the access to all the amenities in light of such a demanding entry process? Condos are great, but the benefits of condo life mean nothing when confronted with high standards. The only drawback to condos is getting into one in the first place.
Yes, of course applicants must have a strong financial backing if they are required to pay everything essential for living in a condo community. These expenses will include: a mortgage payment, a fee for membership in the condo board association, taxes needed to finance the complex, monthly loan repayments, insurance premiums and other expenses that are necessary for maintaining or promoting the community. These obligations require a vast funding on an ongoing basis—a reality that is far from obscure and never lost on home seekers who have been around and done their research.
The above explanation answers my query as to why financial background is important, but it doesn’t negate the existence of the drawback.
This is one main reason why many people consider moving into regular apartments; such residences are easier for applicants to gain acceptance than condominiums. This point bears repeating: the rent is quite often higher than condominiums and homesteads and not always inclusive of everything (e.g. heat, electric, telephone, etc.), but the entry process is quicker to access and a status of acceptance easier to achieve. THIS benefit alone is an extremely important one for many people seeking manageable housing.
The benefits of condo life offer an excellent investment for owners to make money and save on taxes. It’s a shame that so many people lose out on that.