Many New York residents purchase condominiums because they provide an affordable path to home ownership. People who buy condominiums own the units they live in and pay a monthly homeowners association fee to cover the costs of maintaining and improving common areas like parking lots, gyms, tennis courts and swimming pools. Purchasing a condominium is a little more complex than buying a single-family home, but it is still a relatively straightforward process.
Homeowners associations
Before buying a condominium, it is wise to study the rules and restrictions put into place by the homeowners association. These rules and restrictions are designed to protect property values and prevent disputes between unit owners, but some people find them intrusive and restrictive. It is also a good idea to check the association’s financial records to make sure that sufficient funds are available to take care of maintenance and repairs.
Special assessments
The monthly HOA fees paid by condominium owners do not always provide sufficient funds to pay for major repairs or upgrades. In these situations, homeowners associations ask unit owners to pay special assessments to cover these costs. When condominium developments were built decades ago and homeowners associations do not have large sums of cash in reserve, special assessments should be expected. The homeowners association terms and conditions that condominium buyers must agree to will specify how special assessments are paid.
Condominiums have pros and cons
Condominiums are popular in parts of New York where property prices are high, but community living is not for everyone. People who buy single-family homes can choose when to make repairs or improvements, but condominium owners must abide by the decisions made by their homeowners associations. They may also be required to pay special assessments when major renovations or upgrades are needed.