First Time Buyer
Condominiums are a good way to get into the housing market if you can't
afford to buy a house or prefer this type of lifestyle. Condos are also
great if you don't want to spend a lot of time doing yard work or
maintenance. One important thing to remember about a condominium is that
you don't actually own the unit you live in nor the lot. You own the air
space inside the walls, ceiling and floor of the unit.
With a townhouse you own the unit along with the lot.
Owning a condo, you are restricted from adding a room, painting the
exterior or changing the landscaping. When you buy a condo you are also
joining a homeowners' association which is responsible for the maintenance
of the units, insurance, garbage and outdoors areas. The monthly HOA fees
may seem high at first, but owning a home will have similar costs over a
same period of time. Condos for sale.
What to
Consider when Buying a Condominium
Ask owners in the complex what they like and dislike about both the unit
and the complex. How good is the sound proofing? End units and upper units
generally sell for more when sound comes into play. How is its location in
the complex. Next to an access street, parking facility, pool? Look for
units that are not adversely affected by these.
Stay away from
predominantly rental condo complexes, those having more occupants that are
renters. They are often poorly maintained as absentee owners usually vote
against improvements and increases in maintenance fees. Many lenders will
not make loans if the percentage of renters is high compared with
owner-occupants.
Compare
monthly association fees with other similar condo complexes and what
amenities are included. Find out if any increases in fees or special
assessments are planned. Is the condo homeowners' association in good
financial condition. Before making a purchase offer, obtain the latest
financial statement from the homeowners' association. Are there any
lawsuits between the homeowner association and the builder? Who manages
the complex and how well are the common areas maintained. Check to see if
there are any unusual bylaws, rules or CC&Rs. A good complex generally is
a result of restrictions of pets and rentals. Read all papers carefully.
Condos for sale.
Buying in a
New Complex
Find out how many units are sold and closed. Don't be one of the first
buyers. Its better to have 60% of the condos sold before you close your
purchase. If the units don't sell or the developer goes bankrupt, you may
end up owning much less.
Make sure a warranty is provided for one year on everything in the unit.
It is important to know exactly what your developer will warrant when
buying in a new complex.
How do
Condos Compare to Single-Family Homes?
Based on appreciation, condominiums in some areas have been as profitable
an investment as single-family homes in the last five years. In some
markets, condos appreciated even more. Condos for sale.
Problems
with Condominium Associations, are Condos a Bad Investment?
Despite problems in many associations, condominiums
have done a good job of holding their value. Real estate experts say that
the reason there are more stories about conflicts in associations is the
proliferation of homeowners' associations.
Condominium associations involved in lengthy and expensive litigation may
find that such disputes will hurt re-sales because some lenders are
reluctant to make home loans on units in their projects. However, experts
argue that many disputes today are resolved more readily without
initiating legal action. In addition, the condominium community has worked
hard in the last few years to overcome image problems that were brought on
by disputes and lawsuits among condo owners and developers. Associations
today are becoming more sophisticated about property management and are
taking steps to prevent legal problems and disputes. Buying a condominium
is still an excellent way to start home ownership.
