In the ever-evolving list of housing options in Bermuda, condo dwelling promises convenience, amenities, and a sense of community, but it might not be right for everyone.
As with any major life decision, it’s essential to consider whether a condo lifestyle aligns with your personal needs and preferences. I met with Broker / Agent Sharon Cranfield of Cranfields Property Bermuda to get her perspective regarding the potential pros and cons of owning and living in a condominium.
What are the basic differences between living in a condo and a single-family home in Bermuda?
As with any home purchase, when evaluating a condo development, you need to consider the features and amenities that you require such as the size of the unit, parking, storage, security measures, pet ownership, and proximity to schools and grocery stores.
“The biggest differences all relate to rules,” says Ms. Cranfield.
When you own a private house, you make all the decisions regarding maintenance and use of property yourself, but a condominium development is governed by a member body that establishes the rules that everyone must abide by.
“The rules are meant to lay out ‘how’ the occupants of the condominium should treat each other, but some people find this restrictive,” she explained. “Typically, there are rules governing pet ownership, the parking of cars, additions and alterations, use of outdoor space and the ability to garden.”
What types of amenities are available in Bermuda condo developments?
Depending on the size and price-point of the development, the range of available amenities includes onsite parking, landscaped gardens, storage units, security, swimming pools, beach access, fitness center, tennis courts, common room, and children’s play area.
What is the difference between a Freehold Condominium and a Leasehold Condominium?
Freehold Ownership Under the Condominium Act (e.g. Rockaway): Each unit in the development becomes real property vested in the development and it represents 1 share and can be rented or sold. There is a board of directors made up of owners. Owners may sit on the board and vote at AGM, they will also be expected to abide by the rules and regulations.
Source – www.propertyskipper.com
Leasehold Ownership Under the Condominium Act (e.g. Mizzentop): The right to live in the condominium unit for a period of time is purchased with a shared interest in the grounds and amenities around it. A condo maintenance fee is paid monthly, and alterations are limited in accordance with the head lease as well as other restrictions imposed by the landlord/ owners committee. You will have some input on the condo rules and regulations if you are a member of the Board with voting rights at the AGM.
Source – www.propertyskipper.com
What things are typically included in condo fees in Bermuda?
“Condo fees typically include things like registration of the condo corporation with the Registrar of Companies each year, property insurance, property management (either by a professional management service or by a caretaker), maintenance of exterior of buildings, maintenance of the pool and landscaping of the grounds, lighting of the common areas, as well as paving of driveways and common areas,” says Ms. Cranfield. “It’s important to read all of your condo documents carefully because every development is somewhat different,” she advised.
What is typically excluded from condo fees?
Regardless of the size or location of your unit, condo fees do not typically cover internal repairs (such as a blocked kitchen drain), replacement of windows and shutters, personal property insurance, upgrades to aging infrastructure, or unanticipated events that have cost implications.
“If the water heater in your unit bursts and causes damage to the unit below, you would need to make a personal insurance claim as this would not be covered by the property insurance for the development,” she explained.
What is a condo levy?
“A condo levy is additional fees that condo owners must pay to cover expenses, repairs, or upgrades that are not covered by the regular condo/ maintenance fees (such as replacing an elevator),” says Ms. Cranfield.
“In each instance a cost analysis of the job in question is made and an assessment of shared costs is levied on each dwelling unit,” she said. “However, these levies can be apportioned equally on a per unit basis, or based on a mathematical formula that relates to the number of bedrooms that a unit contains.”
What are some of the typical restrictions regarding pet ownership, renting out the unit, or making modifications etc.?
Always ensure that you ask to see all of the rules and regulations before purchasing a condo to ensure that they will work with your lifestyle as these can vary significantly from one development to the next. Some developments, for example, have restrictions regarding the type, size and number of pets that can reside with you, while others restrict whether you can rent your unit as an Airbnb, put plant pots on the balcony, or even have a care-worker living with you in your unit.
What are some of the “red flags” that a purchaser should be on the lookout for when considering purchasing a condo unit?
“This is yet another reason why it is important to read and understand all of the condo documents that you receive when you make your purchase,” says Ms. Cranfield. “A lot of first-time condo purchasers seem to forget that they will need to pay a monthly condo fee in addition to their monthly mortgage payment or that these fees can increase over time.”
It is also advisable to consider the condition of the development overall. Are the grounds being properly maintained? Are the development books up to date? Is the property manager living on-site, a paid third-party or is the management being organized by a group of resident volunteers?
“All of these factors can affect your ability to get things repaired, or deal with unruly tenants,” she cautioned.
For those valuing convenience, amenities, and urban living, condos can be an excellent choice. But it’s important to keep in mind that condo living is just that – a lifestyle and take the time to choose the one that suits you best.
