Today the number of people living in condominiums is more than it was in the last decade. As condos have many unique features to offer, most people of the younger generation are inclined towards them. Though condos are different from ordinary apartments and houses, one needs to know different types of condos.
Though the types of the condominium are not much, they have a subtle difference among them. If condos have managed to pique your interest, you must know all the types to get yourself the one you need. If you reside in South Carolina and want a condo, pay attention to Myrtle Beach Oceanfront Condos for Sale. These oceanfront condos are great for people who want to be around the beach.
The Major Two Types Of Condos
The condominium is divided into two primary types: freehold and leasehold. After knowing these types in detail, you will be able to choose your ideal one.
If the unit or condo is on the lease and the tenant has no authority in ownership, this is a leasehold condominium. As the land is not owned, the typical expense fee only includes the rent of the unit, not the price of the land.
Although the unit is on the lease, the time of stay is predefined and not be less than 40 years. So for the maximum period, a person can hold the lease for 99 years. It makes the experience of staying in a leasehold condo very similar to the other kind of condo houses.
Condominium – Know All The Different Types Of Condos
After the expiration of the ground lease, the owner needs to let the land go. A person cannot occupy the land anymore, so one can only feel like the owner during the lease p[eriod.
If the ownership of the condo is given to the purchaser, then it is a freehold condominium. Generally, the ownership is under the developer, who transfers the ownership to other tenants. Tenants take a mortgage to keep the ownership secure.
So in a freehold condo, the individual has the rights to both the land and the unit. If you are up for a valuable investment, investing in such condos will be the better option. With complete ownership, you have to take care of the interior and the exterior of the unit, and you can make improvements of preference.
Freehold condominiums are further divided into four subcategories which are explained here.
These are the most common condos, and all the knowledge you have is regarding this type. The complex is divided into smaller units or condos, and a person has a separate unit to his name. The interior of the unit is owned by you. The walls, floor, and ceiling inside the unit are yours. If you are lucky, you can get a parking spot with the same purchase.
You have to share some places with your complex mates in these condos. Such places are called common places and usually cover all the areas outside your unit. The other conveniences like the pool or gym are for every owner, but no one among them owns these places.
For the maintenance of commonplaces rather than a sole person paying, all the people pay collectively to the condo association. These condos are the most commonly occupied ones and are often on sale for people to purchase. For example, some of the best Myrtle Beach Oceanfront Condos for Sale are for everybody to enjoy.
Common Element Condos
When no units are under the individual or the corporation but have the right to the shared amenities, these are common element condos. The common element condominium corporation often manages these and are responsible for maintenance. The maintenance includes all the areas that are not under the control of the owner of the unit.
These owners of the common space usually charge the maintenance fee, which is a requirement for every member to pay. So for the upkeep of these places, you have to pay these owners.
When the ownership of condominiums is sold while the construction is not completed, these condos are classified as phased condos. The reason for such a name is that all the condos are still in the developing phase but are owned by multiple people. Therefore, it gives the developer a chance to have owners before the completion of the project.
A period of 10 years is given to the developer in case some amendments need to be done by the developer. After that, the developer is answerable for the description of the plan. Then, finally, he announces the declaration of the changes that will take place.
Vacant Land Condos
When only a bare land that has no structure yet is sold out as units of condominium, these are the last type of freehold condos. The only requirement of the selling process is that the land should be registered as a condominium. The individual who purchases the vacant land condos gets to be the owner of the land as well as the unit.
The cost of maintenance of these condos is the least among all the types mentioned above. The individual who has the right to the land has to be responsible for its management of the interior as well as the exterior. It lets you manage the expenses accordingly, and the fee you will pay is for the standard or shared space.
Besides the maintenance, you can also modify the interior without any outer interference. As the land and the unit both belong to you, you can always customize the exterior as well. All of these features of vacant land condos have made them the best investing option among condos.
The Final Verdict
While purchasing a condo, rather than thinking about it as just a place to live in, think about it as an investment for the future. If you are the owner of the unit, you can rent it or even sell it in the future. So knowing all the types and their features can help you make the best choice for investment.