If you are looking to buy your first home or, you want to avoid the costs of owning a home; a condo is a great option due to low maintenance costs. Nowadays, you may face some trade-offs that are associated with having a condo. Therefore, before taking a leap, you consider the following things:
Tips for purchasing a condo
Ask whether the building is insured. Condo’s insurance coverage is an important aspect you should take into account. You should note that inadequate coverage can cause financial burdens later. Moreover, it may make it difficult to acquire financing. Ensure you buy a condo that has adequate insurance cover. You should verify the insurance from the insurer before purchasing it.
Number of investors
If you are planning to acquire a loan to purchase the condo, the financier may find it an unsafe investment because of a number of investors. Thus, they can deny you a loan. When there are several investors, banks may decline to offer you a mortgage. This has an effect on the resale value of your home. Ensure that investors own less than 40% of the building.
Condos are great if you are looking for a home without maintenance. This is because they are bundled into monthly fees and taken care by professionals. You should note that when you are living in a condominium, you are part of the community that is living there. Thus, you should be comfortable with the level of noise and amount of activity going on.
Although it appears that you are saving money by buying a condo, you should note that you will be paying ongoing fees. It is advisable to find ahead of time how much are required to pay monthly. You should factor total fees into your budget before buying the condo.
It can be quite difficult to get information about reserves before buying the property. However, some sellers can provide information about reserve funds of the property. By knowing how much the building has in reserve funds helps determine how the board handles building finances. Also, it can be used to cater for unforeseen costs such as new roofs, or broken pipes. If the amount is not sufficient to cover such costs, you are likely to pay part of the bills.
Owning a condo instead of a traditional house is a smart choice. This is because you are getting a house ownership that is associated with minimal maintenance.