Many first-time buyers choose a condo as their first home. Condominiums are becoming more attractive to first-time homebuyers as they are filling the demand for more affordable housing alternatives. With house price appreciation forecasted to increase over the next 4 years, it makes them an attractive option to the high prices of single detached homes.
Condos are generally found in apartment-style buildings. But they can also be found in other types of properties – for example, townhouses. This is how it works:
- Condominiums consist of two parts.
- Private “units” that are owned by and registered in the name of the purchaser of the unit.
- Common elements of the building which may include parking areas, elevators, hallways, front entrances and any recreation facilities.
- You are charged monthly “condo fees” to maintain indoor and outdoor common areas shared by the condo owners and these monthly fees can vary widely and are in addition to your mortgage payments.
- Each condominium property has rules – each owner must follow these rules.
Condo owners form a “members association”. They elect members to their Board. The Board meets to decide on issues related to the building and its unit owners. For example, whether or not the units can be rented out to non-members, or if pets are allowed.