What are condominiums and how do they differ from other types of housing?

Introduction

Today, condominiums occupy a significant place in the real estate market in various parts of the world, although they are not always the right option for everyone. In this article, we will take a detailed look at the concept of condominiums, trace their history, and compare them to other types of housing, such as apartments. We will also analyze how condominiums work, using Thailand as an example to demonstrate the price ranges and features of this form of housing.

What are condominiums?

A condominium is a type of residential property where individual apartments are privately owned, while common areas and amenities, such as gyms, swimming pools, and lobbies, are accessible to all residents. Each owner has their own personal space but can also make use of shared resources, thereby creating an atmosphere of community and interaction. In addition to residential condominiums, there are also options designed for commercial use, such as office spaces.

The historical development of condominiums

The concept of condominiums has a long history, but the modern understanding of this term began to take shape in the mid-20th century. Let's look at the key stages of their development:

• Ancient beginnings.The concept of joint ownership of real estate dates back to ancient times. In the Roman Empire, there were blocks of property that were held in common ownership, known as "insulae," where apartments belonged to different owners.
• The first cooperative settlements.In the 19th century, in response to the rapid growth of cities, cooperative housing models began to emerge, providing for joint ownership of buildings and the distribution of financial and administrative responsibilities.
• The legal basis of horizontal property.The first laws regarding condominiums were enacted in 1960 in Puerto Rico, which created the legal framework for individual ownership of apartments in multi-unit buildings and the arrangement of common areas.
• Distribution in North America.In 1962, the state of Illinois was the first to pass a condominium law called the Condominium Property Act, which became the foundation for further changes in this area across the United States.

Advantages of living in a condominium

There are many advantages to living in condominiums. One of the main benefits is the availability of shared services that may not be accessible in traditional homes. Shared ownership often means lower maintenance costs for common areas, making condo living more economically attractive. Additionally, neighbors can provide a source of social support and contribute to a friendly atmosphere.

Disadvantages of living in condominiums

At the same time, living in condominiums has its downsides. For example, residents may experience inconveniences due to rules set by the homeowners' association, including those regarding approval for changes in interior design or keeping pets. The need to share public spaces with other residents can also lead to some discomfort.

How to buy an apartment in a condominium and what are the prices? Let's consider the example of Thailand.

The process of buying property in a condominium in Thailand has its own nuances, especially for foreign citizens. The cost of real estate can vary depending on the area and the level of amenities offered, sometimes reaching significant amounts. It is important to follow certain steps, such as verifying the legality of the transaction and working with reliable agents, which plays a key role in the acquisition process.

Checklist of important points before buying or renting

Before making a decision to buy or rent an apartment in a condominium, it is important to consider many aspects. These may include the association rules, the amenities available, and most importantly, the current condition of the property itself.

Conclusion

Condominiums as a form of housing continue to gain popularity worldwide. Despite their pros and cons, they remain a modern choice for many people looking for convenient and affordable living options.

Legislative initiatives

Legislative acts concerning the management and organization of condominiums laid a solid foundation for their functioning. In particular, during the 1970s and 1980s, there was a significant increase in the number of new condominiums, which, in turn, confirmed their demand, especially in densely populated urban areas.

The evolution and spread of condominiums

As of today, it can be confidently stated that condominiums have come a long way in their evolution and are becoming increasingly widespread around the world. Different countries have developed their own legislative norms and rules regarding this type of housing, and this model has become particularly popular in countries such as Canada, Australia, Singapore, Brazil, Thailand, and many European nations.

Advantages of living in a condominium

It should be noted that living in a condominium generally requires higher expenses than traditional rental housing. However, this living format has its undeniable advantages. Let's take a closer look at the key aspects of life in condominiums.

• Unmatched comfort.First of all, it is worth mentioning the level of comfort that these residential complexes provide. Their residents have access to a variety of amenities that could be either too expensive or complicated to install and maintain in a separate home. For example, many condominiums include modern fitness centers, spas, concierge services, well-maintained rooftop garden areas, as well as common spaces for events and socializing.
• Maintenance and security services.Moreover, one of the important factors is the issue of safety and maintenance of the housing. In condominiums, there is specialized maintenance staff whose job is to keep the common areas clean and orderly. This significantly eases the lives of the owners, allowing them to avoid unnecessary hassles related to maintenance.
• Formation of a community.Another positive aspect is the formation of a community among residents, which occurs through the shared use of various amenities and common spaces. This creates opportunities for interaction with neighbors and significantly enhances the sense of belonging to a unified society.
• Convenient location.In terms of location, condominiums are typically built in central and promising areas, providing their residents with easy access to key elements of urban infrastructure and transportation hubs.

Disadvantages of living in a condominium

Nevertheless, alongside the positive aspects, one should not forget about some drawbacks associated with living in a condominium. One of the notable downsides is the mandatory utility fees that homeowners must pay. Typically, these fees gradually accumulate and are used for maintenance, repairs, and upkeep of common amenities.

It is important to understand that depending on the condition and age of the complex, the amount of these contributions can vary significantly. In some cases, additional payments may be required, for example, if there is a need for major repairs and the regular fees do not cover the associated costs.

It should also be noted that interest rates on mortgage loans for purchasing condominiums are often higher than those for traditional residential properties. This can significantly impact the decisions of potential buyers, as it increases the overall cost of living.

Conclusion

Therefore, when making a decision about living in a condominium, it is important to carefully analyze all the pros and cons. This will help gain confidence in the correctness of the choice, taking into account individual needs and financial capabilities.

Features of a mortgage when buying in a condominium

When buying an apartment in a condominium, you may encounter high interest rates on mortgage loans. This is because the financial stability of the owners of such properties significantly affects the risks that banks take into account.

The popularity of condominiums in Thailand

In Thailand, condominiums remain one of the most popular housing options for foreign citizens. These residential complexes offer a variety of services, making them attractive for living. Among these are security, regular cleaning, laundry services, and other amenities necessary for a comfortable life.

A well-developed internal infrastructure also plays a significant role, where you can find amenities such as swimming pools, gyms, relaxation areas, and coworking spaces. Some condominiums can boast of having shops and restaurants. It is important to note that specialized companies are responsible for the maintenance of these complexes, ensuring order and comfort for the residents.

Features of markets in different regions

In large cities like Bangkok and Hua Hin, the majority of buyers are locals, whereas in popular resorts like Phuket, a significant number of transactions involve foreign citizens.

Among the reasons why people choose to live in condominiums, we can highlight:

• the desire to have a personal place to relax;
• the opportunity to earn from renting.

Renting and buying condominiums

The rental prices for these apartments range from 20,000 baht (approximately $576) to 200,000 baht (around $5,760) per month. This range depends on various factors, such as location, apartment size, and the availability of scenic views.

The process of buying a home in condominiums starts at $100,000 and can rise to $150,000 for a standard studio or one-bedroom apartment with an area of at least 30 square meters.

Property rights

Unlike other types of residential real estate, condominiums offer foreigners the opportunity for full ownership of their apartment. According to the country's laws, developers can register 49% of the housing in a complex to foreigners, granting them full ownership rights.freehold). The remaining 51% can be sold under long-term lease conditions (leasehold), the term of which is up to 90 years or more. All owners share the common areas on a proportional basis.

Aparthotels vs. Condominiums

It's important to keep in mind that some complexes have the status of apart-hotels, which distinguishes them from condominiums by the absence of common areas and the inability to purchase apartments in full ownership. Renting such apart-hotels is possible, but property rights are limited.

Recommendations for buying or renting

If you are planning to buy or rent a condominium, make sure to thoroughly review all the rules and regulations applicable to the specific complex. It is helpful to familiarize yourself with the financial reports of the management company to ensure that income exceeds expenses — this is an important indicator of financial stability.

It is also worth checking for any open court cases against the condominium, as this could negatively impact its financial condition.

Financial aspects

Don't forget to find out how much you will be paying for the monthly fees and what exactly they include. It's important to know if any major work is planned in the complex, such as major repairs or an expansion of the services offered, like adding a gym. If such projects are planned, be prepared for possible additional expenses alongside the current fees.

Housing inspection

Finally, try to arrange a visit to the condominium itself and the apartments you are interested in. Pay attention to the noise level within the complex to ensure that the home you choose will be comfortable in every way.

Conclusion

Today, as I summarize the discussion on the topic of condominiums, I realize how important it is to have a proper understanding of this type of real estate. Condominiums offer unique opportunities for communal living, which includes both personal space and amenities available to all residents. However, like any other type of housing, there are pros and cons that need to be considered when making a decision about buying or renting.

I saw that the history of condominiums reflects changes in public demand for comfortable and affordable housing. From ancient Roman islands to modern wooden high-rises, this form of housing has successfully adapted to people's needs. Modern life requires not only convenience but also community, which makes condominiums appealing to many.

Advantages and disadvantages

Nevertheless, it is important to remember that along with the advantages, there are also disadvantages.

• Homeowners' association fees (HOA fees)Condominium owners are generally required to pay monthly HOA fees to cover various expenses.
• Higher interest ratesThis can be a problem when buying an apartment in a condominium.

Before starting the process of buying an apartment in a condominium, it's important to thoroughly research the market, consider all the nuances, and weigh all the pros and cons. By comparing the prices of apartments in attractive tourist destinations like Thailand, one can notice that good deals often come with high monthly maintenance fees - and this should always be at the forefront of our attention.

Therefore, if you are considering the possibility of living in a condominium, my advice is to approach the selection carefully, taking all factors into account. I hope that our material has been useful and informative for you, and will help you make the right choice in the future.