Are Boston luxury condos a good investment? How do they compare to single-family house?
Boston luxury condos are a great choice for those buyers who want a low-maintenance place to own and live. The newer Boston condo complexes now offer popular amenities such as on-site gyms, concierge services, and pool areas and indoor parking. Boston luxury Condo living remains a very popular option for many buyers at a variety of price points.
Some Boston luxury condo owners have concerns when it comes to resale. As a Boston real estate agent, I’m often asked if selling a condo is harder than selling a single-family home. The answer depends. One of the main factors is the location burbs vs city.
Secondly, your luxury condo is only as good as your Condominiun Association or HOA. HOAs typically charge each unit a monthly fee for being part of that association, which usually covers maintenance for the exterior and common areas, a master insurance policy for the building, landscaping, trash removal and any other building amenities. The fee may cover monthly utilities such as water and electric, as well.
Buyers factor in that monthly fee when deciding what property to buy. It may be harder to sell a Boston condo in a building with a much higher condo fees than similar buildings in the area. But while a low fee may seem like the best deal for buyers, it’s important that the Condo Assocation has enough funds to keep up with the property for maintenace, taxes and any other future building improvements
In addition to maintaining the building, each condo association is responsible for maintaining a savings account, called reserves for the building or complex. These reserves are used to cover operating expenses as well as fund special projects, such as repainting, replacing the roof or updating the building’s HVAC system.
Why is this important? If your association doesn’t have enough in reserves and a major expense arises, the association has the right to vote on and authorize a special assessment. During a special assessment, each condo owner is required to pay a specific amount in order to raise the needed money for that repair. If your condo association does not have sufficient reserves and the complex needs an unexpected, expensive repair, the owners are left holding the bag. If there is a special assessment due when you are selling your condo, the buyer may expect you to pay for it. Or they may decide to move on to another property altogether.
Are you a condo owner thinking about selling? Contact a Ford Realty agent for a free consultation on your home’s value.