Condo attracts huge sales in big cities, thanks to benefits such as low maintenance and easy-going lifestyle. It is evident that housing and real estate costs are at towering amounts across the world. This makes a condo a cheap way of making your way into the competitive market, especially as a young person. For consumers looking to purchase a condominium, a number of variables are to be considered. Many of these differ from those to be considered when looking for a home and are only uniquely tied to purchase of condominiums.
Condo buying tips
Go through the condominium laws and declarations
These documents contain a detailed description of modules available, a list of property elements, and votes in exact numbers required by the condos’ board members to pass rules governing the place e.g. details on lease arrangements and the period they refrain from being legal again. By-laws are supposed to clearly define rules governing how the ground is supposed to be maintained and collection of association fees. Check the language used to write the documents to aid in making an informed decision.
Review board members information and their backgrounds
This is usually a small unit of elect people responsible for administration and declaration of by-laws while ensuring they do not conflict with stipulated legal statutes. Learn everything and be curious about their track record based on the time they have spent on the board. This prepares you to know if some schemes are just a scam and are fraudulent.
Study financial reports
Check whether the association provides an annual overview of net income procured as well as an outline of all expenses, are they issued out monthly? These reports will provide insight on how the association plans and uses a budget and whether reserve funds are available and more importantly adequate. Take a look at discrepancies on past balance sheets, most recent ones and the current operational budget.
Inquire if there are anticipated high-value maintenance items
If the board plans or still has a pending fat cheque project, be careful enough to ask if the expense is catered for by a reserve fund or through other means. This will help in setting right your expectations on common projects that could affect your living situation in the projected future.
Cost of the unit purchased
Do not allow yourself to be surprised by a rise in association fee if you did not inquire on entry if the current amount was projected to be raised after a period. This information is important since then you will know if that particular condo unit fits right into a comfortable budget on ownership.
Imagine an unprecedented calamity striking and most of your particulars are damaged, what next? Say the association doesn’t cover for the wind, fire or liability insurance? It is, therefore, important to go through policies covered by the association so that you as an owner can prepare or budget to cover for the remaining policies. The bottom line is you should not be afraid to ask any questions, be proactive while making a decision before purchase.