Im thinking about buying a condominum instead of a house. Anything I need to watch out for?

Question

Extra expenses? Can you renovate? Who pays insurance? Do I pay renters insurance basically to cover my items inside? What about the actual structure? Im from the South and down here we mostly have houses so any advice is appreciated!

Answer 1

Having recently bought my first condo, I could go on for hours about what I have learned in the process. Here are just a few key pointers:

Ask about condo fees. These are monthly payments required from the condo owners and used for regular maintenance and upkeep on the property. How much are current condo fees? Have these fees ever increased? If so, when, how often and by how much?

Ask about the building's reserve fund. Collected condo fees are pooled and saved in this fund. You are legally entitled to know how much is currently saved and what the funds have been spent on. Properties are also required to conduct a review fund study done - ask when this was last done and ask for a copy of the report.

Ask about any special assessments. These are payments required of the condo owners when, or if, the reserve fund cannot cover a cost. When and how much was the last previous special assessment? What was it used for?

Ask about the previous use of the building. If your desired property was an apartment building in its previous life, chances are good that the plumbing was only sufficient to handle a shared couple of washing machines on each floor. Many condos now have their own laundry facilities ... ensure the plumbing (and electrical) is up to code.

Ask about the owner/renter ratio in the property. Property owners are far more concientious than renters.

Think carefully about the building amenities. Will you REALLY use that swimming pool? If not, this becomes a huge expense for you without benefit.

Meet the neighbours (if possible). Knock on their door and introduce yourself. Explain that you're considering purchasing the condo next door and ask them for their thoughts on the building and management. Silently evaluate them as potential neighbours in the process.

As a condo owner, you are responsible for the interior of your unit while the property managers are responsible for the exterior and any common areas (areas shared by all owners/tenants). If your toilet is plugged, you will be responsible to plunge it yourself or call a plumber. Garbage pick-up, landscaping, snow removal, etc. is done for you (costs are covered by condo fees).

Run for a position on your condo board. This is an excellent way to learn more about the property and to have a voice in the operation.

Hire a professional inspector to look through your desired new home prior to purchase. Such inspections can cost a few hundred dollars, but they are well worth the price when considering what you are considering investing. When making your offer on the property, make it conditional upon professional inspection.

Consider the building's age and structure (concrete or wood?). Concrete obviously provides better protection in the case of a fire and is more soundproof as well.

Consider your unit's location in the building. Are you near the elevator (handy for hauling groceries but you'll potentially hear a lot of foot traffic)? Near the garbage chute? Near an exit stairwell? Will you get the morning or afternoon sun?

Consider your building's location. Are you close to work? Grocery store? Bank? How is the traffic around the site (remember that traffic can be vehicles, trains and airplanes ...)?

As I said, I could probably go on for hours with this subject, but this should get you started. Enjoy the home hunting!

Answer 2

Be sure you learn the difference between townhouse and condominium as some think they are the same but with a townhouse you do not even own the land under you in case of a fire. Also have a firewall between the units, how often can they raise the association fees, is their a board and do you have a vote on who is on it,does the board have power to make sure everyone pays their fee's and to enforce rules good for everyone,can the board make sure owners and renters keep their yards up, if rent their units is there a way to make sure renters do not let the unit run down,if you share a roof are they different heights so can replace one with out all having to replace theirs when not needed. Just be sure you get a list of the rules and regulations and study them before signing anything.

Answer 3

Read your condo documents. Get a copy of the financials, cash reserves, and proposed budget. Check for previous and future assessments for repairs.

In general condo documents are setup as follows:

1. The monthly maintenance fee covers common expenses and you are responsible for the interior of your unit.
2. You can renovate only the interior of your unit with some limitations.
3. Master policy covers common areas and land (paid from maintenance fee) and a content policy which covers the interior of your unit and personal items (you pay for it separately).

It is important to understand that if your association does not have enough money in reserves to cover a major maintenance or repair item that each owner may be assessed a lump sum payment to make up the difference.

These are only basic concepts please read the condo documents and if you don't understand them consult an attorney.

Answer 4

First the condo fees and how they're set. Can the owners vote to keep them the same? Second, I'd positively require that the walls between the units (with your neighbors) are concrete or concrete block walls all the way to the roof tops. That's for fire protection and sound, smell and varmit isolation from your neighbors. For example what if they smoke, make a lot of noise and like a lot of cockroaches and mice around? Even though you'll pay somewhat more for heating and cooling by buying an end unit, you'll have one less neighbor to contend with.

PS, Also, you obviously do not want anyone living below or above you!

Answer 5

You will pay for content insurance, your condo fee covers the fire insurance for the building. You can renovate no problem, but if you want to knock out a wall or anything else major, you'll need permission of the condo association. Find out how much your condo fee will be, when is the last time the condo fee was raised, and how much the condo has in reserves currently for maintenance and repairs.

Answer 6

Condo fees are getting higher due to insurance. If a developer is still involved they may be keeping the fees low by paying some expenses. Fees may go up when they leave. Some associations have crazy rules. Find out what they are.You can do anything you want inside your unit as long as it doesn't effect the structural integrity of the building. I love my condo. I like to be able to come and go as I please. Yard and pool are maintained. Condos are cheap right now and getting cheaper. Wait a while to buy.

Answer 7

I think it's hilarious. They are like a horde of cannibalistic lemmings all attacking each other while, collectively, they run towards the cliff. Repukes, your hero, Reagan, won by capturing the conservative Democrats in the middle. Elections are won and lost in the middle. Don't get me wrong, I'm not trying give you advice because your decline has been amusing to watch. Keep up the good work.

Answer 8

Go a for house I would

Answer 9

get a house it is better