Is it Advisable to Purchase a Condo?

Is it Advisable to Purchase a Condo?

By Sandy Flores

Special to Excelsior

 There are many reasons for buying a condo as their first choice, rather than a house. The condos also have many advantages compared with buying a house.

 Many of the reasons for buying a condo instead of a house usually include the price. The condos are cheaper and more accessible than a house. The exterior maintenance is the responsibility of the condominium association and not the owner directly, as it is when you are a homeowner.

Regarding the property tax benefits are similar to those of a condo with a house. The pride of owning a property rather than continue renting. We must also consider the potential benefits of resale. If the appreciation in the real estate market will increase, so will your condo when you decide to sell.

On the other hand there are some additional points to consider, such as payment for monthly membership fees in respect of the HOA, compliance with the rules of the association, commonly known as the rules which are to govern owners and registered in a payroll, which is known by its acronym as CC & R’s (Covenants, Conditions & Restrictions). The possibility exists that unexpected increases occur in these monthly fees and special assessments for maintenance costs.

Ask all the questions needed to make a smart purchase. You can ask questions about the financial condition of the association. If you are considering buying a condo Release to attract buyers, builders probably set the monthly condo fees very low.

If you are considering purchasing a condo resale inquire about reservations. Depending on the age and anticipated replacements of the building, if reserves are inadequate a large special assessment can be imposed on each owner when an unexpected expense arises. Review the minutes of the board meetings of the past six months if given the opportunity to do so, to determine whether it is discussing and meeting all agreed.

Unless it is a small condo building of five units or less, professional management it’s a good sign. The cost is generally paid also, because an experienced condo manager knows where to get discounts on repairs that need professional managers.

Another related question to ask is how long you have to experience the professional manager who has been managing the complex. For example, the longer the term the better. This indicates that condo owners are satisfied with their services. What is the percentage of people who are renting is another good question. Mortgage lenders know that the risk of default foreclosure in condominium complexes with people that rent for more than 20 percent to 30 percent is very high.

Many lenders consider risky finance units in such complexes, offering interest rates in some cases higher than normal. Condominium complexes with anti-renter rules are considered very desirable for owner-tenant and often bring higher resale prices. As with any property purchase is highly recommended professional inspection, in addition to the report provided by the seller of the property.

Become familiar with the neighborhood. Most owners of the condo-renters are friendly and do not mind sharing their good and bad experiences. Try talking to several residents to make sure that you will receive unbiased information.

As always, it is good to consider the advice of a realtor who specializes in this type of property, to make this task less complicated roots.

 

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