Buying a condo can be a big purchase, and it’s important that you do your research before you make an offer. Today I’ll go over five things you need to know before buying a condo.
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Today I want to go over five things you need to know before you purchase a condo:
3. How much money is in the reserves? You want to make sure that you look at all of the financial aspects of the condo association. The condo association should have enough money in the reserves for future repairs. Every two years, the condo will undergo an inspection, and if there is not enough money in the budget, you will wind up incurring the costs of repairs.
Today I want to go over five things you need to know before you purchase a condo:
1. What are the HOA dues? What do the HOA dues cover? Sometimes they cover lawn maintenance and swimming pool upkeep while others cover water utilities and trash collection. The condo in the video is technically a townhome, so the HOA dues, in this case, are much lower. You would only have to pay $120 a month, but that’s because the HOA only covers landscaping maintenance in the common areas.
2. What is the rental cap? Make sure that each condo association you are interested in does not allow a lot of renters. When rental rates are high, the next person who purchases a condo in that complex will have a hard time getting financing, which could mean that you will have trouble when it comes time for you to sell the property in the future.
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The rental cap directly affects the
resale value of your condo.
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resale value of your condo.
3. How much money is in the reserves? You want to make sure that you look at all of the financial aspects of the condo association. The condo association should have enough money in the reserves for future repairs. Every two years, the condo will undergo an inspection, and if there is not enough money in the budget, you will wind up incurring the costs of repairs.
4. Are there any pending assessments? Pending assessments are very important; some associations that are five, 10, or 20 years old could need roof repair in the future. If there is not enough money saved up, there will be a pending assessment. You want to know when those are coming up because again, if there is not enough money in the reserves for repairs, you will have to pay out of your own pocket.
5. What are the rules and regulations? Do they fit into your lifestyle? Many condos have pet restrictions. Some may only allow cats and other small pets, while other condos allow dogs of a certain size. Some dog breeds may not be allowed in the condo. You will also want to ask about things like parking restrictions or whether or not you can barbecue on the balcony.
It is very important to do your research on these five items before you submit an offer for a condo. If you have any other questions about buying a condo or about real estate in general, give me a call or send me an email. I would be happy to help you!
It is very important to do your research on these five items before you submit an offer for a condo. If you have any other questions about buying a condo or about real estate in general, give me a call or send me an email. I would be happy to help you!
