If you are considering buying a condo, you have to keep in mind that there are a number of fees that you will need to pay in order to properly maintain the property and ensure that you can continue living in it. You’ll want to be sure you find and condo document review company to help you first off. Some of these fees are the sorts of standard payments that you would make with any property, whereas others are fees that are unique to condo owners. All of them need to be considered before you decide to make a purchase.
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The Mortgage
You will have to pay a mortgage on practically any property you buy, unless you purchase it outright, so this should be a fee that you expect. What you may not expect is the fact that mortgage rates for condos are often a little higher than you would expect to pay for a house, especially if you didn’t put a large amount of money down upon purchase. As such, you should expect to pay 0.125 to 0.25 percent more for the mortgage of a condo, which needs to be accounted for in your budget.
Property Tax
Just like the mortgage, property tax is something that you are going to have to pay on pretty much any piece of property that you own. Before you make the purchase, be sure to speak to the relevant experts to find out how much you will be paying so that you can add this into your budget.
Maintenance Fees
Maintenance fee is where the condos differ from many other types of property. The first thing to remember is that this fee does not go directly into the pockets of the people who own the complex. Instead, it is most commonly used to deal with your utility bills and the cost of maintenance for the complex as a whole and any unique features that it may have, such as a pool of the gym area. Remember that you are essentially a part of a community ownership plan when you buy a condo and that all owners of a unit need to contribute to the complex as a whole.
Special Assessments and Contingency Fees
It is also important to point out that a contingency fee will be taken from you, often as part of your maintenance fee, so that the complex is covered in times of emergency.
Finally, you may also be required to pay a one-time fee known as a special assessment if you own a condo. These fees are not a regular occurrence, but they will often be substantial as they will be asked for to cover the costs of repair or maintenance on projects that can’t be covered by your standard or contingency fees, so you should always keep money aside for them just in case.
