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-------------------------------------------------------------------------------- Real Estate Guides Condominiums are a good way to get into the
housing market if you can't afford to buy a house or prefer this type of
lifestyle. Condos are also great if you don't want to spend a lot of time
doing yard work or maintenance. One important thing to remember about a
condominium is that you don't actually own the unit you live in nor the lot.
You own the air space inside the walls, ceiling and floor of the unit. With a townhouse you own the unit along
with the lot. Owning a condo, you are restricted from
adding a room, painting the exterior or changing the landscaping. When you buy a condo you are also joining a
homeowners' association which is responsible for the maintenance of the
units, insurance, garbage and outdoors areas. The monthly HOA fees may seem
high at first, but owning a home will have similar costs over a same period
of time. What to Consider when Buying a Condominium Ask owners in the complex what they like
and dislike about both the unit and the complex. How good is the sound proofing? End units
and upper units generally sell for more when sound comes into play. How is its location in the complex. Next to
an access street, parking facility, pool? Look for units that are not adversely
affected by these. Stay away from predominantly rental condo
complexes, those having more occupants that are renters. They are often
poorly maintained as absentee owners usually vote against improvements and
increases in maintenance fees. Many lenders will not make loans if the
percentage of renters is high compared with owner-occupants. Compare monthly association fees with other
similar condo complexes and what amenities are included. Find out if any increases in fees or
special assessments are planned. Is the condo homeowners' association in
good financial condition. Before making a purchase offer, obtain the latest
financial statement from the homeowners' association. Are there any lawsuits between the
homeowner association and the builder? Who manages the complex and how well are
the common areas maintained. Check to see if there are any unusual
bylaws, rules or CC&Rs. A good complex generally is a result of
restrictions of pets and rentals. Read all papers carefully. Buying in a New Complex. Find out how many units are sold and
closed. Don't be one of the first buyers. Its better to have 60% of the condos sold
before you close your purchase. If the units don't sell or the developer
goes bankrupt, you may end up owning much less. Make sure a warranty is provided for one
year on everything in the unit. It is important to know exactly what your
developer will warrant when buying in a new complex. How do Condos Compare to Single-Family
Homes? Based on appreciation, condominiums in some
areas have been as profitable an investment as single-family homes in the
last five years. In some markets, condos appreciated even more, according to
Dataquick, a Southern California firm that tracks home sales prices
statewide. Problems with Condominium Associations, are
Condos a Bad Investment? Despite problems in many associations,
condominiums have done a good job of holding their value. Real estate experts
say that the reason there are more stories about conflicts in associations is
the proliferation of homeowners' associations. Currently, there are an estimated 35,000 in
the State of California alone. Condominium associations involved in
lengthy and expensive litigation may find that such disputes will hurt
resales because some lenders are reluctant to make home loans on units in
their projects. However, experts argue that many disputes today are resolved
more readily without initiating legal action. In addition, the condominium
community has worked hard in the last few years to overcome image problems
that were brought on by disputes and lawsuits among condo owners and
developers. Associations today are becoming more
sophisticated about property management and are taking steps to prevent legal
problems and disputes. Buying a condominium is still an excellent
way to start home ownership. To find condos listed on the internet,
start at Local MLS Search |
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Real Estate Guide |
