If you’re looking for some of the advantages of owning real estate without all of its responsibilities, you may want to consider purchasing a condominium. While you’ll be restricted by the condo association as to what kind of changes you can make to your unit, you won’t be responsible for the upkeep of the grounds and facilities, and you could enjoy a number of amenities, such as tennis courts or a pool, that you may not be able to afford on your own. While monthly condo fees can run high, chances are that the costs of maintaining a home may be in an even higher range for an equivalent neighborhood and level of comfort.
Like other kinds
of real estate, a well-managed condominium in a popular
area may appreciate in value. However, to sidestep
any potential problems you’ll want to do some
research into the condo association, the history of
its buildings, and its occupants. Questions you should
ask include:
Is the complex professionally managed? How many of the occupants rent and how many own? Complexes with
a high percentage of rental units are sometimes poorly maintained. And
some lenders will not make loans if the ratio of renters to owners is
high. Are the finances of the condo association in good order? It’s
a good idea to request a copy of the association’s latest financial
statement before making an offer.
If you’re considering
purchasing a new condo, find out how many of the units are
already sold. If the developer can’t sell most of the
units and goes
bankrupt,
your property could be worth substantially
less than you anticipated.
You can avoid unpleasant
surprises by getting an independent inspector’s report
before you make an offer.
