For home buyers, condo units are a great option allowing investors to enjoy the perks of urban community life. Condo units provide great amenities with less upkeep and are generally more affordable than buying a single family house. Condominium classifications include freehold and leasehold. The tenant directly owns the freehold. For leasehold condos, tenants are under contract with their landlord. Here are different investment property types of condos in D.C. to help home buyers decide which one works best:
Condo Home
A condo home is one in which a buyer owns a single portion inside the building but not the building’s location. Under this freehold type of condo, only the condo’s interior is owned by the buyer. Hallways, driveways, and other shared amenities are common areas for other owners and guests.
Condo Share
A condo share is one is which a tenant or group of tenants share a condo for a particular time period, most commonly the case when a short-staying tenant is occupying the condo as a vacation house. This is a great option for those who are looking for a cheaper way to own a condo. However, since there is often more than one party in ownership or who has some interest in it, selling is often more complicated than when you outright own the property. Unless all parties jointly agree that this is an investment with the sole purpose of being sold for profit within a specific time, it is best considered a secondary or vacation home.
Detached Condo
Detached condos are the same as standard freehold condo units but without shared walls. Think of them as single-detached homes clustered together. Enjoying the perks of a Home Owners Association (HOA) planned community is an advantage to investing in detached luxury condos in D.C.
Private Condo or Private Own Apartment
A private condo is similar to a tenant renting an apartment unit while getting to experience luxury condominium amenities in DC. With this type of leasehold arrangement, a landlord can rent out their single-unit condo to other tenants. It is the responsibility of a tenant or group of tenants to maintain the interior of the condo. Deposits, advance payments, and contract terms are agreed upon before closing a unit rental.
Condo Developments
In condo developments, the developer owns the land where the building stands. Ownership is transferred to the buyer upon acquisition of the unit. The buyer is responsible for maintaining the purchased unit’s exterior walls. Property management in this investment property type in D.C. is in charge of the maintenance and upkeep in all common areas.
Find just the right luxury condo unit for you in Washington, D.C. with the help of the expert realtors at Heller Coley Reed of Long & Foster Real Estate. They’ll help you navigate the market and choose the right condo in which to invest. Call today at 240.800.5155 or send a message here.