Looking to invest in a condo community? This is an excellent choice for those who want to own property but don't want the hassle of maintaining a home.
In this article, Damon Becnel will walk you through investing in a condo community and what you need to know before purchasing. He'll discuss everything from choosing the right neighborhood to getting the best value for your investment.
So, whether you're a first-time investor or someone thinking about buying property, read on for all the information you need!

What Is A Condo Community?

A condo community is a complex or subdivision of condos. Residents own their units but share common areas like pools, parks, and clubhouses. This type of community can be an excellent investment because it offers all the benefits of homeownership without the hassle of maintaining a property.

What Are The Benefits Of Investing In A Condo Community?

There are many benefits to investing in a condo community, including:

Ease of maintenance

As we mentioned before, residents in a condo community don't have to worry about maintaining their property. This can be a massive relief for those who don't want to spend their weekends mowing lawns and cleaning gutters.

Community living

Condo communities offer a sense of community in traditional neighborhoods that you can't find. This can be a great thing for those who want to socialize and meet new people.

Great for families

Condo communities are often designed with families in mind. They offer plenty of common areas for kids to play and opportunities for parents to get to know their neighbors.

Value and appreciation

One of the best things about investing in a condo community is that your property value appreciates over time. Demand for these communities is always high, so they tend to hold their value better than traditional homes.

How Do You Find The Right Condo Community?

When looking for a condo community, it's essential to consider your needs and what's important to you, says Damon Becnel. Some questions you should ask yourself include:

• How many bedrooms and bathrooms do you need?
• Do you want a community with many amenities, or would you prefer something more low-key?
• How much are you willing to spend on monthly fees?
• Are you looking for a family-friendly community or one that's geared towards retirees?
  
  

Once you have a good idea of what you're looking for, it's time to start your search. There are many different ways to find condo communities, including:

• Online listings
• Newspapers
• Real estate agents
• Homebuilders
  
  

What Should You Look For When Touring Potential Communities And Condos?

When touring potential condo communities, there are several things you should keep in mind:

• The size of the community
• How many units are in the community? What is the mix of sizes (townhomes, apartments, single-family homes)?
• What kind of amenities are offered?
• Are there any restrictions on who can buy a unit in the community?
• How much are monthly fees and other associated costs?
• What is the return on investment you can expect over time?
• Are there any risks associated with investing in a condo community, and what can be done to mitigate them?
  
  

How Much Should You Expect To Pay In Monthly Fees And Other Associated Costs?

When investing in a condo community, you should expect to pay monthly fees and other associated costs. These fees will vary depending on the community you choose, says Damon Becnel, but can include:

Monthly fees - This is what you'll pay to live in the community. It can range from around $100 to $500 or more.

Capital contributions - This is a one-time payment typically required when you purchase a unit in a condo community. It's used to cover things like the cost of repairing common areas or replacing amenities.

Reserve contributions - Like a capital contribution, a reserve contribution is used to set aside money for future repairs or replacements.

Association fees - This pays for the costs of running the condo community, such as staffing, maintenance, and insurance.

Ground rent - If the community is located on leased land, you'll likely have to pay ground rent. This can range from $50 to $200 or more per month.

Property taxes - Like any other property, you'll have to pay taxes on your condo community.

Homeowner's Insurance - You'll also need to have homeowner's insurance to cover your unit.

Community amenities (e.g., pool, clubhouse, etc.) - These are often included in your monthly fees but may also come with an additional cost.

What Kind Of Return On Investment Can You Expect Over Time?

When investing in a condo community, you can expect to see a return over time. This return will vary depending on the community you choose and market conditions at purchase but typically ranges from four to six percent. This is significantly higher than what you would see with other investments, making condo communities a wise choice for those looking to invest their money wisely.

Are There Any Risks Associated With Investing In A Condo Community? What Can Be Done To Mitigate Them?

While investing in a condo community is typically a safe bet, some risks are associated with the investment. These can include:

Lack of appreciation - The value of your condo community may not go up as much as you hope, leaving you with little or no return on your investment.

Declining market conditions - If the market takes a downturn while you're invested in a condo community, you could see the value of your investment drop.

Bad management - If the community is poorly managed, it could lead to higher monthly fees and other associated costs and decreased property values.

Final Thoughts

Investing in a condo community can be a wise choice for those looking to invest their money wisely. By considering the factors mentioned above, says Damon Becnel, you can ensure you find the right community for your needs and maximize your return on investment.



Image Credits:

Image 1: Image by Bernard Spragg. NZ on Flickr
Image 2: Image by Condos CCSCA on Flickr