Condos, or condominiums, are residential units in larger complexes where you own your living space and share common areas. There are many advantages to condo living, and depending on the market and your circumstances, they can be great investments. Let’s explore what a condo is, how ownership works, and the benefits of condo living.
Condos and Their Investment Potential at a Glance
- A condominium, or condo, is a property arrangement that combines individual unit ownership with shared ownership of common areas, distinct from rental apartments.
- Condo ownership includes exclusive rights to the unit’s interior while sharing responsibilities for maintaining common areas, typically managed by a homeowners’ association (HOA).
- Condo living offers reduced maintenance, access to community amenities, and enhanced security, making them appealing for personal residence.
- Renting out a condo can provide positive cash flow and cover mortgage payments for the property, allowing the owner to build equity.
Defining a Condo
At its core, a condo is a property arrangement where a building or a group of buildings is divided into several individually owned units that share common areas, including the potential for future condominium development. Picture a large property complex where different individuals own each unit, but the hallways, recreational facilities, and other amenities are shared among all residents.
A key feature distinguishing condos from other housing types is the blend of individual and collective ownership. Each condo owner has exclusive rights to their own unit, much like owning a single-family home. However, they also share ownership and responsibility for the common areas and amenities with other condo owners.
Condos and apartments differ significantly. While both may look similar, condos are individually owned units, whereas a property management company typically rents apartments. This distinction affects maintenance responsibilities and the sense of community.
Source: portlandrealestate.com
