Condos are a great investment for anyone, but are especially popular among retirees and investors. They’re typically low-maintenance, offer numerous amenities, and are often located in a prime location. However, in addition to the mortgage payment, insurance, and property taxes, you may have to pay for HOA dues, special assessments, and additional insurance.
HOA/Maintenance Dues
Most condos will have either a home owner’s association or a property owner’s association that is responsible for replacing broken windows, maintaining the landscaping, and replacing old roofs. However, this service comes at a cost. Condo owners will typically be charged a monthly, quarterly, or annual fee to cover these expenses along with upkeep for any amenities the community offers such as a pool or tennis courts.
Special Assessments
Special assessments are additional dues that are charged to cover expenses that aren’t considered routine maintenance or that are beyond what the standard dues can cover. These unexpected expenses are divided among the homeowners to cover unplanned expenses such as storm damage, new amenities, or projects to protect the health and safety of residents.
Additional Insurance
The condo’s HOA should cover insurance for the exterior of the building, but homeowners are responsible for insuring the interior. Depending on the location of the condo, you may need additional insurance to protect your interior from flood or storm damage.
Knowing what to expect to pay for your condo is important. So is hiring an experienced agent who has your best interests at heart. Contact me if you or someone you know is thinking about making a move!
About Don Cholak
