The term Condo is used as a short-form for the word condominium. A condo, in layman language, is a property owned by an individual in a building having multiple units. For buying a condo there are multiple points that are to be considered prior to the purchase. In most of the cases when an individual opts for a Condo rather than purchasing a residential place, it saves a hole in the pocket. The units of the multi-unit building are available for sale for the investors. Hence, each unit is considered as a single condo.
Why Buy a Condo?
There are several reasons to why a condo is preferable over a residence. Some of them include the availability of pools, gyms, playing areas, etc. It gives a sense of security and superiority to a person to live in a society. The maintenance is low and the quality of life improves.
As each condo has a different set of conditions associated with it, you need to be careful while purchasing one.
Hence, the following are some important tips to be kept in mind while planning to own your very first condo:
- Be 100% sure that you want one:
Before putting in a huge amount of money into real estate, be 100% sure about it. Knowing what you are purchasing is important. Ensure that a condo is actually what you wanted to own. Condos are not similar to the family residence. There is quite a lot of difference between the two. Therefore, make sure that your needs and requirements match the property you are getting into.
- Seek professional help:
As a newbie, it is okay to not know things. That is where professional knowledge helps you. Look around for an agent that has some good experience in the field. He’ll help you out in understanding the various aspects of owning a Condo. The knowledge of condominium law is something that a professional can provide at best. Hence, hire an expert to ensure that you aren’t going the wrong way. A few extra dollars can save you from a disaster for sure.
- Collecting the money:
It collecting might come to you as a surprise but collecting money isn’t as simple as taking a loan for a family residence. A number of financial institutions would deny loans for purchasing of a condo. The payment of condo purchase is done in cash only due to some regulations. It is necessary for the condo you are purchasing to be on an approved list of FHA. Only then you can take a loan from the Federal Housing Administration. Thus, having a full-fledged down-payment amount is necessary to purchase a Condo.
- Know the facilities:
Ensure that you know the Condo and what comes with it inside out. The parking facilities, the additional services that they give, chargeable services, etc. are to be enquired about. Once you know all of it and you are sure that you are getting what you hoped for, go for it. But try not to miss this essential tip because you might be missing out in something or unknowingly expensing on something. The sooner you know, the better it is.
- Association Fees:
Almost all Condos charge association fees from the residents on a specific time period. It can be monthly, quarterly, or even once in a year. Association fee is a specific amount paid for the maintenance of the building you are living in. It even includes the insurance amount in some cases. You have all the right to know where your money is being used and what all you are paying for. It is an important question to ask while buying your Condo. Know how the community manages its expenses and whether or not you’ll be having access to the financial statements. A good and fair community will be transparent with their records and hence you’ll know your best spot. Ask for the list of services that will be paid by the fees given by you. Majorly included services are insurance, maintenance, snow removal, trash removal, water, sewer services, etc.
- Rules and Regulations:
Every Condo has its own set of rules and regulations. These differ from place to place. Check the norms you are signing up for. Read them well beforehand to ensure that you have no issues with it and you follow them strictly. The rules of a condo are made with the perspective of a secure and comfortable living of each and every person living in society. They play a very important role in making up the mind of an investor of the property.
- Enquire wisely about special assessments:
Over the period of your living, your condo might need some roof repairs or structural modifications. For the sake of that, the condo committees might change the assessment fees as per the requirement. Once you know what is included in the fee, you can inquire about the additional charges that might occur. This will give you a fair chance to consider your budget. Always remember, a good condo committee wouldn’t hesitate in disclosing the financial records.
- Management committees:
This is yet another aspect that you need to focus upon when buying your first condo. Usually, committees or designated persons are assigned for supervising a certain task. Not just the supervision, it is important for an individual living in a condo to know about the people performing such tasks. These include the cleaning service providers, the maintenance company, etc.
Information about all these important people and committee should be available for you in a reputable Condo.
Hence, it is quite obvious now that the differences between a condo and a family residence are many. Investing in a Condo can be the best decision of your life only if you play smart. The decisions are to be taken considering the tips mentioned above. Make sure that you weigh down the pros and cons of the place you are going to buy before you dive too deep into it. The places you own should have a special connection with you. Especially when you are buying your first condo, leave no chance of regretting your decision.