Before you start looking for waterway condos for sale to invest your money in, one of the first things you will need to know is the specific type of condo ownership that you want to get into. This is especially true if you are planning on a long term condo investment that earns profit.
You should know that there are three types of condo ownership. Unlike buying a single family home where in you can choose to buy both land and the property or the land only, there are other factors involved in determining condo ownership. These ownership types generally depend on the condo building association as well on your purposes in buying waterway condos for sale.
The three types of condo ownership
1. Undivided interest on the entire property
This is the most common type of condo ownership where the buyer pays for an undivided interest on the entire property along with the right to own and occupy a unit in the said property as well as the right to use common areas in the same property. These common areas, as defined by the condo building association, may include swimming pool, parking area, recreation room, dance hall, gym, basketball court and other sports related play area, rooftop and dock.
2. Planned Unit Development or PUD
This type of ownership gives the owner the land on which the waterway condos for sale are built, the condo unit, and the streets as well. This is more common in low-rise condo building and single-family home residences. Keep in mind that if you choose a planned unit development type of ownership, you will be the one to maintain the entire land, the condo unit as well as the streets where your condo unit is situated. However, you can set up an agreement with the homeowners’ association so that they will be responsible for the maintenance of streets.
A co-op ownership is one where you buy a condo unit from a stock cooperative. The condo building where you want to buy a unit from is owned and managed by a stock cooperative which runs differently than condo building associations and homeowners’ associations. The primary difference, however, is that you are actually buying stocks in the building unlike with the other types of ownership where you buy a portion in the deed of the entire property. So instead of a deed certificate, you will receive a stock certificate. And when the condo building earns profit by the end of the year, you’ll have your share of profits depending on the stocks you bought.
It is important that you know what type of ownership you prefer at the beginning of your condo investing venture to ensure that you are in the right path. Knowing this will guide you on what direction to take and decisions to make.
Need help looking for quality waterway condos for sale? Jerry Pinkas Real Estate Experts can help you! Call them now.
Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
Helping you find the best waterway condos for sale and all the information you need for your condo investing venture.