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Email This Article For decades, the single-family residence has been the favored investment for buyers who wanted to purchase and occupy a property. Some ownership rights are given up when you buy a condo. Also, you own parts of the complex with o ther people with whom you or may not get along. With a house, you're the sole owner and ruler of the roost. For example, many condo a ssociations have had to sue the builder for shoddy workmanship. It can be difficult to sell a condo while there's pending litigation affe cting the complex. However, perhaps the major reason why condos haven't been the investment of choice is that they have trailed single-family re sidences in terms of home price appreciation. For decades, single-family residences appreciated at much higher rates th an did condominiums. In 2003, however, the rate of condo appreciation su rpassed the single-family rate for the first time. Just as condos are coming into their own as a respectable investment, the re are exciting variations on the condo model to choose from. Although these complexes may have a trendy new name, many of the loft com plexes are actually condominiums. In most cases, the buyer purchases a u nit to which he has ownership rights to all that lies within the unit wa lls. He also owns a fractional interest in the common areas of the devel opment and he shares this interest with the other owners in the complex. There's a homeowner's association that takes care of the governance issue s There are rules and regulations (covenants, conditions, and restricti ons) that apply to all co-owners in the complex. And there are homeowner 's association dues, usually paid monthly, that provide for such things as insurance for the complex common areas and some maintenance. House-hunting tip: One of the most enticing reasons to buy a condominium rather than a single-family residence is that it provides a simpler, low - maintenance lifestyle. If this is your goal, make sure that you'll actually be getting what you bargained for. Don't assume that your homeowner dues will take care of a ll exterior maintenance. You may even find variability within one comple x The dues in one phase might cover exterior paint and roof replacement , but not in another. Before buying a condo, find out exactly what is covered in your homeowner association dues. Also, find out if there are owners who are delinquent in their dues, and find out how much the dues have been increased over time. In a new development, the initial dues assessment may not be reali stic in terms of handling future problems. In older buildings that requi re a lot of upkeep, you may find that the homeowner's dues are exorbitan t Investigate any pending litigation against the complex. If the project is new, check out the builder's reputation. Have homeowner's associations of other complexes he built sued him? How does he deal with routine comp laints and requests for repairs? Read the minutes of recent homeowner's association meetings to find out i f there are problems you should be aware of. Is the reserve fund adequat e to handle unexpected expenses? Or, should you anticipate further asses sments to repair a tennis court or replace a furnace? The closing: Talk with several owners to find out what they like and don' t like about the complex. If the soundproofing is minimal or the water pressure is low, you may wan t to consider buying elsewhere. Dian Hymer is author of "House Hunting, the Take-Along Workbook for Home Buyers," and "Starting Out, the Complete Home Buyer's Guide," (Chronicle Books).
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