Sellers

The Pros/Cons of Condo Living

December 17, 2013 in Buyers, Sellers, Tips - Leave a Comment
The Pros/Cons of Condo Living

Condo living can have its perks. However, when contemplating the purchase of a condo instead of a house, it’s important to weigh both the pros and cons. Here are some factors to consider.

Cons:

  1. Close quarters. If privacy is important to you, maybe condo living isn’t for you. Neighbors are often right across the hall or on the other side of a wall. Unlike a single-family dwelling that may offer trees and a perimeter fence for privacy, expect to share space with others.
  2. Association fees. A monthly fee, independent of your mortgage, goes towards the upkeep of the property. When considering a purchase, it is crucial to factor these fees into your overall budget.
  3. Resale value. When it comes time to move, if there are a lot of units available in your building, expect fierce competition.
  4. Rules and regulations. Unlike a home, condo owners are subject to rules and regulations, and suffer financial or legal consequences for violations. Frequently there are restrictions on renovations, noise and even the size of pets that are permitted.

Pros:

  1. Repairs. Any maintenance or repairs in your building are not your responsibility. Don’t worry about the torn shingles, leaking roof or broken furnace, your association fees will cover it.
  2. Security. Many condos offer extra security, such as a doorman and gated entries. Also, with so many neighbors, help is never far away.
  3. Added perks. Some complexes offer amenities that are out of reach to many homeowners, such as a clubhouse, fitness center or a community pool.

This information is courtesy of Century 21 life@home newsletter.

To sell or to rent? That is the question.

December 5, 2013 in Sellers - Leave a Comment
To sell or to rent? That is the question.

The reasons for selling a home are as numerous as properties themselves. Some homeowners may decide to rent their property instead of selling. Here are some pros and cons to consider when deciding to rent or sell your home and don’t forget to consult a financial expert and tax advisor.

Rental pros:

  1. Waiting game. In the case of a buyer’s market, renting your home may buy you some time until you can sell your property for a better price.
  2. Cash and equity. Rental income may cover all of your ownership costs, and may even make you a monthly profit, while you are building equity.
  3. Exemptions. Talk to your tax advisor about whether you are eligible for tax breaks from your rental income and expenses related to home improvements.
  4. Flexibility. If you are reluctant to sell your home, renting it out allows you to retain ownership.

Rental cons:

  1. Beck and call. You are the landlord. Be prepared to handle all of your renter’s household questions and problems, no matter what time of day or night.
  2. Bad renters. Even with the most thorough of background checks (which cost money) renters can damage your property.
  3. Insufficient funds. Sometimes, the income from your renters is not enough to cover the expenses. Taxes, mortgage, and insurance fees can sometimes exceed the amount you can charge your renters.
  4. Legal ramifications. If you have particularly challenging tenants and need the courts to get involved, it could be a time consuming and costly process.

This information is courtesy of Century 21 life@home newsletter.