Purchasing a Condo
To put it simply a condominium is a form of home ownership in which individual units of a larger complex are purchased, not rented. They may be commercial warehouses, townhouses, converted apartment buildings or newly constructed buildings designed specifically as condominiums. The word condominium does not apply to the unit itself but how the unit is held legally. Those who purchase a condominium technically own everything from the walls inward and individual condo owners have shared rights for the areas such as hallways, grounds, pools, clubhouses, and elevators. The maintenance of these common areas is usually the responsibility of the condominium association. Each owner shares a common interest and has an obligation to pay monthly dues or special assessment fees.
Condominium ownership many times is the best option for potential homeowners. If you would like to have a pool, playground area, clubhouse or many of the other amenities a condo offers then buying into a complex with all of these is your best choice. You just need to remember you are paying for these with your association fees and there will be others who use these facilities also. Most veteran apartment dwellers benefit from purchasing a condo because they are used to having neighbors close by and using the same amenities with others. Normally the overall price of a condominium is less than single family homes but still allows equity to build so it is no different in regards to recouping costs assuming the property will appreciate.
Before you run out to purchase a condominium there are several things you need to consider. Find out if the building has a good reputation. Ask current residents how often repairs and maintenance are done and remember the association decides what is done and at what cost to each of the members. Check out parking and security arrangements before you buy especially if you have multiple cars or are concerned about your own well being. Another area to consider is budgeting in the association dues. When you are thinking of buying a condo you will know what your mortgage payments will be but an added unexpected fee could strain your budget to the breaking point.
Condominium living is not for everyone but can be advantageous financially since you now own your own home. You are able to enjoy many of the amenities normally not affordable with ownership of a single family home. You have the pride of ownership and a financial investment that will pay off future dividends.
Condominium Insurance
When looking for condominium insurance there are crucial questions to ask to help guide you to the coverage you need. To state the obvious, a condominium is not the same thing as a house. Usually, there is no backyard or basement, and you don’t have to worry about cutting the grass or shoveling the front walk. Insurance is another area where homes and condos differ. Condo owners are typically responsible for insuring just a portion of their property on their own. However, rules differ from complex to complex, and it is important to ask the right questions to ensure you have proper insurance coverage.
What are your ownership and insurance responsibilities in the condo association’s Master Deed? In other words, what does the association expect from you regarding insurance requirements? Individual owners have a collective responsibility for insuring areas of the complex owned in common - building exteriors, hallways, pool area, etc. Individual unit owners typically are responsible for separately insuring everything within the four walls of their unit. The condo association’s master policy, as well as association rules, should spell out clearly which parts of the complex are insured through association dues and which parts are not.
How much is the association deductible? This is an area many condo owners don’t think about. Condo insurance typically includes commercial insurance coverage for the commonly shared building and common areas which usually includes an association deductible. In the event of a natural disaster or hurricane or whatever and the condo association needs major work the association will tender the claim to their commercial insurer. But would be a deductible and that deductible would be assessed against all unit owners so if there were 10 unit owners, it would be divided 10 ways. You could really be hit with bill you weren’t expecting or did not know about if you didn’t do your homework.
It is also important to know how to lower you condominium insurance. Several questions need to be asked that can factor in to reducing your costs.
- Have your agent properly estimate the value of what is being insured by you for your condo.
- Apply modification credits. For condos that can mean sprinkler systems and central monitoring burglar and/or fire alarm.
- Shop around. It is often inconvenient and may require some effort but finding the right policy and coverage can save you money in the long run. Finally, keep in mind that there may be discounts. Many companies offer discounts such as non-smoker or retired.
Condos in the Chicago area
Condos in the Chicago area
Being a prospective home buyer looking for condos in the Chicago area can be both fun and intimidating at times, due to the number of options available. Of course, location and price are always the most important considerations, but seeing so many attractive luxury condos in prime locations can be tempting, even if they are a bit out of your price range.
It can be fun perusing the upscale developments in prime locations near downtown, the Magnificent Mile and the lakefront, or even in easily accessible suburbs. Many of the luxury condo high-rises offer attractive amenities such as pools, state-of-the-art fitness centers, and concierge service. Being so close to all the nightlife, shopping and cultural activities that Chicago has to offer is an added value, and the views of the city and Lake Michigan from the balconies and rooftop gardens can be breathtaking.
But when it comes to financing a condo, there is no need for a prospective buyer toget discouraged if the most expensive condos in the Chicago area are a little out of his or her desirable price range. Prices can vary a great deal, even within neighborhoods. So it is possible to find an affordable place in nearly the same location, still close to everything but having perhaps a few less amenities, but a more manageable price tag. Bargains can be found, especially if people are willing to expand their searches beyond the trendiest of neighborhoods. Many attractive condos and lofts in distinctive buildings, both newly built and renovated, are available in such up and coming, or gentrifying neighborhoods like the South Loop, Bronzeville and others.
Furthermore, there is no time like the present for buying condos in the Chicago area. Besides the fact that interest rates remain low, and a wealth of available properties makes it a buyer's market, now would be a good time to take advantage of the $8,000 tax credit for first-time homebuyers has been extended through April, as long as the deals are closed by June. The tax credit program has even been extended to include existing homeowners, who now may obtain a $6,500 tax credit.
Both programs require applicants to meet certain income limitations. The income limitations for first-time home buyers are $75,000 for single taxpayers and $150,000 for married couples filing jointly. To get the full $6,500 credit, current homeowners may earn up to $125,000 annually as single filers, or $225,000 for joint filers. Those who make ore than that can get reduced tax breaks.
Real estate auctions are another great way to get great deals on condos in the Chicago area, because they bring motivated sllers and buyers together.
Green Condos in Chicago
We hear it on the radio and television.  We see it in the newspapers and magazines. Going green seems to be the buzz word for this decade but many people just don't know how important and what it all means. It is much more than recycling, turning off your lights when not in use, buying energy efficient vehicles, or insulating your attic. Green means construction materials, building and development techniques and many other technologies unheard of just a few years ago. There are even standards and programs for eco-certification designed to reduce the impact on our planet, the most popular being Leadership in Energy and Environmental Design (LEED). For years condo design has been incorporating green living and we are currently seeing many green condos in Chicago being built in the city and suburbs.Â
Many people think it is too expensive to live in a LEED home or condo but it normally pays for itself with all the energy saving features. Some condo owners have experienced a 50 per cent decrease in utility bills immediately upon incorporating green technology. Customers today are demanding energy saving technology not only because of their own cost savings but the satisfaction they are doing their part for the planet. Energy prices are extremely volatile and unpredictable, so people are naturally interested in purchasing a green condo in Chicago. Developers and builders are happy with this trend because green construction seems to be insulated from the downturn in the real estate market.Â
As mentioned earlier in the article going green is more than recycling and insulating your attic. The technology today has exploded to cover almost every aspect of construction, materials, landscaping and energy renewal. Home and condo builders today boast many green features, including healthier paint and carpeting, recycling of construction waste, lots of natural light, high efficiency appliances and systems, water conserving fixtures, use of renewable materials, minimal water use landscaping and "green roofs" that help moderate temperature while reducing and filtering water runoff. Architects, developers and builders are all looking at ways to reduce carbon emissions and waste with the long term goal of creating buildings and technologies that produce more energy than they consume. Builders are aiming to offer condo buyers green buildings in the same price range as what they would expect to pay for an old fashioned, non-green condo in the area.  It is a bold step for the building trades but they are up to the task to produce a high quality product that is cost effective and the market will ultimately embrace green condos in Chicago.
Finding New Condos – Chicago
Finding the right condo can be a task not for the weak of heart, especially if you are looking to move to a new location when you possibly live way across the United States. Finding new condos in Chicago can be the answer whether you are moving due to employment, moving back home, or just looking for that vacation condo in one of the most exciting cities in the country. In today's world of technology using an online tool can cut your time in half and provide you with much of the information you are looking for in a condo. All you have to do is put in the criteria, such as bedrooms, baths, price, or any other specific needs you have and you can find a large selection of properties that may interest you.Â
Interest rates are down so you may want to get a jump on what you are looking for and take advantage of lower prices as well. You will definitely get more for your money and be able to get your dream condo without having to dig too deep into your savings. Living in a condo offers many advantages like living in an upscale neighborhood and often have amenities such as exercise rooms that you cannot afford with single family homes. Finding a New condo  in Chicago can be easy since they are usually located in well established, proven neighborhoods. There are many different condo communities in the Chicago area - Logan Square, Lincoln Park, Hyde Park, River North, to name a few. Prices differ depending on the size and location, but usually average about $120,000 to $1,000,000.
Condo living have some definite advantages. The most obvious is they are easy to keep up. The only space you need to worry about is upkeep is the interior or perhaps a small balcony or patio. Another advantage is you can lock the door and go whenever you want to get out of town for a vacation and not worry about getting broken into because of the extra security most condo building offer. Finding a new condo in Chicago is not as hard as you might think. Most are located in the heart of the city or close to great shopping and restaurants allowing you to enjoy the city life without the drive. As you can see there are certainly many advantages to condos. They are great options if you live a busy life and like to live close to the action and do not yet have a family.
