10 Things to Consider When Buying a Condo
Condos are quickly gaining in popularity as an ideal type of home for individuals and families of all sizes. Because they differ from single-family homes, there are a few considerations unique to this type of property.
1. What are the Condo Fees?
One of the attractions of condos is that you do not have to worry about regular maintenance; however, this comes at a cost in the form of condo or association fees for which you need to budget. You also need to know exactly what these fees cover so that you are not surprised by any additional costs.
2. Are There Any Rules?
Condo communities often have very specific rules that often forbid certain repairs, remodels, or other work to your home. You should have an idea of your restrictions before purchasing a condo, as well as the punishment for violations.
3. What are the Amenities?
Another reason condos tend to be popular is that they often come with amenities, such as a communal pool. Before you purchase a condo, be sure to ask about any communal property or amenities, and be sure that your condo fees cover the use of said amenities.
4. Who Manages the Association?
Condos are typically governed by an association, which may be managed by a professional company or private individuals. You should have a firm idea of how the communal areas are managed before buying your unit.
5. How Many Owners Live in the Condos?
Condos are a common purchase for investment property, so you should ask whether or not the majority of the residents are owners or renters. The rate of owner residents could affect how well the community manages the properties.
6. What is the Rate of Delinquency Among the Condo Fees?
Although owners are required to pay the fee, there are times that for various reasons they may be delinquent. A high delinquent rate could spell problems for the community as a whole, making the area an undesirable place in which to buy a condo.
7. What is the Master Insurance Policy?
Owning a condo often means you can get a lower insurance rate due to the master insurance policy in effect for the community. However, it depends upon the policy, so you should review it ahead of time to get an idea of what is covered, and for what you will be liable.
8. How Much is in the Reserve Fund?
Condominiums typically have a reserve fund to make the repairs to the communal areas. If the fund seems low, be sure to question about it to see if there is a reasonable reason for it.
9. About What Do Most People Complain?
As a prospective buyer, you should look at the past association meetings to get a feel for the community, including the areas or residents about which most people complain.
10. What Do You Actually Own?
Condominiums are a mixture of personal and communal property. The association is in charge of repairs for communal property, while you are in charge of your personal space. Some areas such as porches or garages may be questionable as to who owns it, and thereby is responsible for the upkeep. You want to be sure you have a firm idea of your responsibility before purchasing a condo.