Ownership of a condominium is an ownership in a shared common property. This accounts for some unique challenges for the potential buyers. Each condominium association has its respective dues and charges which the owner needs to pay, but there is a common fee that every condominium owner needs to pay. The association takes care of the exteriors, while the owner is rightfully responsible for the interiors of his personal condominium.
If you are considering Panama City Beach condos for sale, then read on to understand the expenses that come along with the ownership of a condo.
Condominium Monthly Fee
The condominium fee is the monthly due that needs to be paid by each individual unit owner. The fee is directly based on the amount of development owned by the owner. For example, the owner of a 3-bedroom and 2,000 square feet unit will pay more than the owner of a 2-bedroom and 1,500 square feet unit. The fee amount will also be altered on the basis of the unit’s floor and view. This fee collected by the association is used for the payment for the proper maintenance of the common areas, insurance of building’s common and exterior areas and various other common utilities.
The owners have to take upon themselves the responsible for the electricity that used in their condominium. Most of the individual units share walls. These shared walls insulate them. The end units do not have shared or insulated walls. Therefore, the end unit owners have to pay more for electricity as compared to the other units. For example, the average electricity bill per month for an end unit can be around $300. Also, the owners need to pay more during summers than what they pay in the fall, winters or the spring. An average bill for an end unit is about $300 for a month.
While each association will have a master insurance policy of the common areas and the main building, an individual condo owner is completely responsible for insuring the interior of his condominium. The insurance policies are quoted based on the year in which the condos were built. For example, the condos which were built in 1990’s are generally quoted at roughly $1,000 and the ones built in 1980’s are quoted anywhere between $1100 and $1200. Also, the owner needs to purchase a contents policy, which costs from $800 to $1200 for one year.
The owner needs to pay the tax of the property he owns. The property tax is calculated on basis of the entire value of the condo. It is generally 1 percent of the entire value. Follow this link to the Bay County Property Appraiser to review the total amount of property taxes paid for the prior year.
Other Utility Bills
The condo owner is also responsible to take care of other personal bills, such as the phone bill and the internet bill. While many associations make available free internet for each unit, some of them don’t.