I
received an e-mail from a reader of Lets Talk Real Estate
who wanted
information about condominiums or condos.
As condos have always been very popular in Grand Bahama I thought this
was a very good topic that other readers might be interested in as well. The
condo market like all property on the Island, throughout the Carribbean and the
US has taken a beating since the economic melt down from a year ago. Our values
are down approximately 15% and the number of transactions are down 50% market
wide. Our local economy is in very rough shape with unemployment numbers
somewhere between 13 and 15%. But in
spite of these numbers the market seems to be turning as tourism looks like it
will experience a much needed increase with West Jet service from Toronto, new flights from New York, direct flights
from Charlotte, direct flights from Atlanta and the Club Grand Bahama promotion
which will all have an economic trickle
down to the local economy. Buyers from
around the world are finally stepping off the sidelines and looking at
investing in the Caribbean, Bermuda and the Bahamas again as the world wide
recession appears to over and everyone is talking about economic recovery. Coldwell Banker the international real
estate company that I am part of with over 3700 offices in over 47 countries
around the world, including offices on 16 islands throughout the Caribbean says
that the trend is the same throughout the world. Lets hope that West Jet, the
direct flights the new bridge, Pre-Clearance at a new Private FBO, the new
Cruise Port, Ross University, Club Grand Bahama and hopefully new industry will
give Grand Bahama the boost it needs. So if you are in the market for property
you should certainly consider a condominium as a potential new home.
Condominium is really a
legal term that defines a system of
ownership of individual units in a multiunit structure, combined with joint
ownership of commonly used property. Condominiums
or “condos” as we call them are attractive to homebuyers because they offer
freedom from the perpetual burden of maintenance obligations that are
associated with single-family homes.
Condominiums appeal to the buyer who wants a trouble-free investment, an
“easy living” lifestyle. Condos are different than single homes with each
having their pros and cons. You give up a bit of privacy at a condo in exchange
for having the association take care of all the problems. Condo living is not for everyone but for some
it is a perfect option.
When
you purchase a condominium, you have individual ownership rights within the
boundaries of the walls of your unit.
You share ownership of the common property of the condominium
development and pay a monthly fee that covers the expense of maintaining the
“common element”, which includes roof, plumbing, interior spaces such as
lobbies, stairs and elevators, and exterior features such as swimming pools and
landscaping. Monthly fees are based on
the
unit factor, which is calculated in proportion to the value that
your individual condo unit has in relation to the total value of all units in
the condominium. The monthly maintenance
fees can range from $200 a month to $1,500 per month in some of the very high
end buildings.
Condominium documents outline the precise boundaries of
individual units and the rights and obligations of all parties. Every
condominium corporation is different. What is a common element in one may be
part of the unit in another. For example, an exterior wall may be part of the
common element in one condominium and part of the individual unit in another.
The structure of
responsibility for maintenance can vary among condominiums. Examining the condo’s governing documents
will tell you which maintenance duties belong to the individual unit owner
(you) and which will be handled by the condo corporation.
Most condominium
corporations contract out the daily operations of the building to a company or
hire staff that is supervised by the condominium’s Board of Directors. Some condo corporations manage the daily
building and grounds maintenance within the corporation and are referred to as
“self-managed” condos, with resident owners or members of the board carrying
out the tasks of operating the condominium complex.
The corporation
typically covers the cleaning of common areas and payment of common area
utility bills, the maintenance of plumbing, electrical systems that are common
to the entire building, and operation of the central hot-water heating and air
conditioning systems. They will make
repairs to exterior walls and the roof and replace broken windows. They will clean common areas, parking lots
and recreational amenities, groom and water the grounds and remove garbage and
snow.
Maintenance obligations assigned to
individual owners might include upkeep of plumbing, appliances, heating, air
conditioning and electrical systems that serve only your unit. If you enjoy exclusive access to your own
balcony or patio, you may be required to clean it. And even if the exterior window
surfaces are regularly cleaned, you might be expected to wash the windows
inside
your condo!
Absentee owners may have maintenance
requirements that differ from owners living in the building. When purchasing
any condominium, the wisest first step is to learn about your rights as an
owner and find out what your maintenance obligations will be. Condos were designed to make life a little easier. If you are thinking about a condo or never
really thought about buying a condo take the time to talk to condo owners and
make sure you ask your real estate agent to include condos on the list of
property to look at. Until next week !
I
received an e-mail from a reader of Lets Talk Real Estate
