Benefits of owning a condo in Big Sky, Montana

Benefits Of Owning A Condo In Big SkyIf you are considering purchasing real estate in Big Sky, you may want to consider purchasing a condominium. There are many benefits of owning a Big Sky Mountain Village Condo, or a Big Sky Meadow Village Condo.

A condominium (also referred to as condo) is an individual unit in a shared complex which is owned by an individual. A condo is a type of real estate where several units (or as few as two) are separated into individual units and surrounded by common area. In your condo, your specific residence would be privately owned. It is very common for condos to have shared walls, or there may be someone above or below you. There are also larger detached condos as well. Condos in Big Sky are a safe and hassle-free way to own a property, and have numerous benefits to ownership.

Because of the high cost of real estate in Big Sky, and because many properties in Big Sky are recreational real estate, or are not an owner’s primary residence, condos are a very popular real estate option. Purchasing a single-family home in Big Sky may be cost prohibitive, and if the property is not your primary residence exterior maintenance may be an unwelcome burden.

Condos in Big Sky allow affordability and open up real estate to a newer group of people. Condos are an excellent option for a buyer to get into the Big Sky real estate market. Condos in Big Sky also represent an excellent opportunity to generate rental income due to the high demand for both short term and long term rentals.

Before you begin your condo search in Big Sky, be sure to Contact one of our Big Sky Real Estate Experts, and be sure to meet with a lender. If you are obtaining an FHA loan, there are certain condo complexes that do not allow FHA loans, and your Realtor® and Lender will be able to tell you this information so that you are searching in the right areas.

Property in Big Sky is regulated by one or more Homeowners Associations. The Big Sky Owners Association is Big Sky’s largest and oldest homeowner’s association. In addition, Condo complexes in Big Sky generally have an HOA. The community’s homeowners‘ association (HOA) is generally paid monthly or annually, and this is to keep up and maintain the common areas in the complex or building, and generally takes care of the structure insurance. The HOA is a board of directors, made up of individual members who are generally homeowners.

There also may be Covenants, Conditions and Restrictions(CC&R’s). CC&Rs are the rules of your neighborhood. They describe the requirements and limitations about your property and what you are allowed to do the property (i.e. painting or architectural changes). The goal of the CC&Rs is to enhance the property values in the community. The CC&R’s may have an assessment and dues limit, and that is important information so you will know how much and how often the HOA dues can be raised.

Benefits Of Owning A Condo In Big Sky

  • Affordable: Condos are typically more affordable in Big Sky than Single Family Homes. If this is your first time purchase, and you are looking for property in Big Sky, you may be able to find a condo that fits your needs.
  • Lower Utility Bills: Big Sky Condos may also have lower utility bills than single family homes. Some HOA’s cover different utilities such as water, and that is included as part of your monthly HOA bill. Additionally, condos with shared interior walls may be more efficient to heat.
  • Lower Maintenance Fees: The condos will also have lower maintenance fees. Maintenance will be kept up by the HOA. It is important to look at the HOA documents and the CC&R documents prior to completing a purchase so you know exactly what is covered.
  • Tax Benefits: Condo owners have the same tax benefits as single-family homeowners. Please consult with your tax advisor about what deductions you can take, but it is beneficial to have a mortgage and write off the interest, and the property taxes.
  • Condo complexes have Home Owner’s Associations (HOA) and there are HOA fees which are paid on a monthly basis. This is another factor which needs to be taken into account when speaking with your lender about affordability. Generally, the HOA fees are not deductible but consult with your tax advisor for more details.
  • Amenities: Many condo complexes in Big Sky have amenities and they may include a recreation room, gym, pool, spa, tennis courts, basketball court, volleyball courts as an example. A benefit of condo ownership is the opportunity to utilize a pool and spa without worrying about the maintenance, as this is something the HOA takes care of. The amenities are for the exclusive use of the residents.
  • A few condos in Big Sky have concierge services that are available for the residents.
  • The more upscale the condo complex is, and the more amenities there are, it is likely the HOA fee will be higher. Another consideration is if a major expense is anticipated on the building such as a new roof or new siding, does the HOA have sufficient reserves to pay for it, or will there be another assessment which may be expensive.
  • Insurance: Generally speaking, if you purchase a condo and there is HOA, then the building insurance is covered by the HOA. So do you still need insurance? YES!! But you can purchase what is called “walls in” insurance to cover your contents in the property. “Walls in insurance” is generally less expensive than traditional home owner’s insurance.

Questions To Ask

The following questions are important to ask when you are considering purchasing a condo in Big Sky. It is your right to review the HOA documents, the HOA financials, and to ensure there are sufficient reserves which pay for the maintenance. You will also want to closely review the CC&R’s.

  • How often has the HOA gone up over the past 10 years, what percentage have the dues been increased?
  • What are the condo association rules and regulations?
  • What is covered by the HOA?
  • Are there any upcoming assessments?
  • Is there any pending litigation? (Very important when trying to get a loan on a condo)
  • Does the condo complex allow pets, if so is there a number of pets allowed and is there a weight limit?
  • What is the percentage of owner-occupied? (Your lender will want to know this info).
  • What is the condo rental policy?

Final Thoughts

Purchasing a condo Big Sky is an opportunity to get in the real estate market and begin building equity. If you have any questions, please Contact one of our Big Sky Real Estate Experts. We would be happy to help you out with your purchase of a Condo in Big Sky.