Understanding different condominiums and if they're right for you

A condominium is a property that is divided up into individual units. These units are then sold, not rented, to others. With condo properties, people who buy often have shared interests in community areas. These areas are known as common property and might include hallways, grassy areas or other parts of the property outside their homes.

When you think of a condominium, you might imagine a townhouse-like structure, but they're all different. There is no required shape or size for a condo, other than the reality that they're usually in a community setting and are multi-unit developments.

Some condos are high rises, which have housing for different families inside (apartment style), and others are like townhomes. Still others are commercial properties that sell office space instead of a place to live.

Is it a good idea to own a condominium?

Owning the initial building that is sold to individuals can be beneficial because there is a potential for rapid income. If you sell off the entire property, you could stand to earn a substantial amount. You might opt to keep one of the condos for yourself and to sell the others, essentially paying for your own property by selling off other units.

Condos have positives and negatives, such as the requirement to have a homeowners' association and to require common areas to be owned by everyone, not just a landlord. These are a few things that you should consider if you believe a condo might be the right purchase for you in the future. Every condo is slightly different, so a good contract and legal understanding will go far in helping you make a decision.