If you’re thinking that condominium living meets your lifestyle needs, you’re not alone as witnessed by the number of unique project offerings made to suit just about every buyer group.
In fact, research from the
US shows that three of every ten new home buyers are choosing the condominium option.
I don’t think our numbers are that high but condos are very popular.
It’s true; condominiums offer many advantages to those looking to be unburdened from cutting the green stuff and painting the flaky stuff.
Understanding the basics about this type of housing can help you to optimize your decision in terms of both lifestyle and investment considerations.
Condominiums come in all shapes and sizes.
Most people associate the term with high-rise, apartment- type buildings.
In fact town homes come in all shapes and sizes. In simplified definition a condominium means that you share ownership of common areas with your neighbors and pay monthly condo fees to take care of these areas.
These common elements are an important issue that consumers must investigate thoroughly and understand. Technically, they consist of the entire condominium property excluding the units.
Usually they include things like the parking garage, the roof, the concrete structure of the building, fitness areas and hallways
Units’ declaration. When you by a condominium, you will receive a pack of papers about the condominium association. They may look boring, but it is a good idea to read them carefully.
These documents contain important information about the budget and the rules of the association.
They will give you a clear picture of how well the complex is run and if it will fit your lifestyle.
These documents should tell you if improvements are contemplated and whether there is a reserve fund to handle the expense or if you should expect additional assessments.
You will probably have some questions. What are there policies regarding pets, rentals, and access to recreational facilities?
Are the services available to owners who wish to rent their units?
What are the owner’s responsibilities and what maintenance will be handled by the association?
If you have any concerns, the Realtor can put you in touch with someone on the condo board or management company who can answer your questions.
If you are going to be an absentee owner, good property management is one of the most important factors when making a decision about where to purchase investment property.
You may choose to take an active role in some aspects of the management of your property, however, handling the details long distance can be more can be more time consuming than it is worth.
It is important to investigate the management procedures of the building when you are looking at investment condominiums.
Take a look at the condominium association by-laws and talk to neighbors who have lived in the building a while to find out if the agreements are being fulfilled before you make a decision to buy.
Are the common areas maintained to the standards reflected in the paperwork? Is the turn around time on repairs quick?
The more often the answer to these questions is “yes”, the easier it will be for you to rest easy when your new tenants are settled in. the most important papers to review are the condo association’s by-laws, rules and regulations and most recent budget that shows the income, maintenance and capital improvement cost, and the financial reserves.
These documents should provide you with the answers to most of your questions.
Are pets allowed in the building? Who is responsible for repairs? What is included in the condo fee?
Are there any special assessments to cover improvement not covered by the reserve funds? Are the fees likely to increase? If you take the time to examine you condo papers carefully, you can make an informed buying decision.
The best advice is to ask questions and make sure that your agent and attorney get you the answers you need.
Until next week.
