1. Know very well what you're buying
When you purchase a home, there isn't any doubt in anybody's mind about what you're buying: the house and the yard and then any other structures on that yard, and also you own them free as a bird. With condos, you're buying space. Your premises line starts in the center of exterior walls and ends on the reverse side in the middle of exterior walls. And the same vertically, your premises line begins in the middle of the floor and goes to the middle of the ceiling.
You're also investing in a shared interest in the land and the building, the most popular areas. Understanding that means it's not enough to love the unit you want to buy, you should pay close attention to the common areas. If there are going to be repairs towards the common areas, you will end up partly accountable for paying for them.
2. Know the association
You need to take a critical look at the budget and at minutes from the meetings.
The cost should show that there's enough money arriving to cover monthly costs (garbage collection, maintenance crew, etc.) and enough reserves to pay for predictable but not monthly work the building will need (painting the hallways, changing the carpeting within the hallways, etc.). That means it should be no less than 5% of the association's gross operating budget.
You should know what's the exact percentage you own jointly (the points outside your condo unit that you simply own). You are able to calculate simply how much you have to pay for special assessments and the way much voting power you've got.
And, since we're referring to special assessments, determine whether there are any coming up. Find out once the last one happened. If within the last few years, learn why it absolutely was necessary, why the cost had not been anticipated. Also, learn when were the last few times that the regular association dues were raised. A lot of over a short period of time indicates something's wrong.
Know your association does mean you browse the master deed as well as the declaration of covenants, conditions and restrictions carefully. Reason one: you need to know what you can and cannot do inside your condo unit and in the condo building/project before you decide to invest money. Reason two: it will give you a better understanding of how your neighbors view themselves, what they value.
3. Know your neighbors
It's best to buy in a complex in which the other owners have situations similar to yours. For 2 reasons:
Many of them are going to be about the board of directors, creating rules, the others will be voting for those rules. It is best if you're within the first group. However, if you're pulling right and all others is pulling left, you're heading left.
You've less privacy in a condo than you have in a home.
4. Learn about insurance
Yes, the association may have insurance. However that insurance doesn't cover everything you buy when you purchase a condo. Find out what is not covered and get your own coverage to the part of your home.
You need to have several things be to buy a condo you will love living in. The above four tips may help sort through your choices and make a better decision the very next time you buy an apartment.
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