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Essential Considerations When Buying a Condo

December 13, 2017

Condo living has a lot of advantages, however, the procedure is decidedly different than buying a single-family home. It’s important to think about all aspects of condo living before going on a twin vew condo purchase, that includes knowing the differences between condos and single-family homes.

Condo living is perfect for those who seek the financial and security advantages attached to owning a home, yet want to stay away from the upkeep that goes alongside a single-family home. However, alongside condo ownership are a particular set of challenges and responsibilities:

Loss of Privacy

Although a lot of condo buildings are made and designed in such a way as to limit noise from close neighbors, you simply won’t be given the privacy you would receive by living in a single-family residence. Ensure that you’re cool with how much public space has to be shared amongst the residents.

Large Down Payment

As a result of the several changes throughout the lending sector due to the subprime mortgage crisis, and the fact that a lot of condos seriously lost their importance during this time period, a lot of lenders are now very stringent as far as lending money to condo buyers is concerned. Due to this, you could expect to come to the table with a bigger down payment if you would like to buy a condo.

If you’re shopping for a twin view condo here are some of the most important issues to consider:

1. Management Team

It’s important to consider the condo’s management team before signing on the dotted line. Make sure to interview the condominium manager in person. It’s also a good idea to chat with the neighbors about the condo’s management. There’s many factors that can affect your experience living in a condo. However, if management isn’t good it can cause a lot of problems related to factors like solving problems.

A key issue to consider is how much management the condo requires. In some cases a condo has no property manager and the self-management process seems to work. However, in other situations it’s advisable to have a property manager in order to improve the overall experience of the condo’s tenants.

2. Insurance

It’s important to make sure there’s insurance available via the condo association. If there’s no insurance then you should automatically shop around. Make sure to learn what the policy does and doesn’t cover. That includes the costs to bring the condo up to code. You should also check if the estimates for rebuilding are correct. In other words they shouldn’t be minimized/outdated. Unfortunately there are times when the condo will have to be rebuilt. If you have insurance it’s a plus but it’s also important to have the right amount to make sure you can avoid a lot of possible issues.

3. Complaints

In other words, what are the biggest complaints the current tenants have? You can get minutes the last couple condo board meetings. You can then learn the biggest complaints during the past months. Just as importantly you can also find out how fast the association fixed the problems or whether it didn’t do any fixes as all. This in turn can give you an insight about the condo’s general approach to fixing problems. If it doesn’t seem to care about them then it’s an issue.

4. Market Value

Make sure to consider the current and future market value of the condo. As a rule condos appreciate in value slower than apartments. So it’s important to consider how long it will take you to turn a profit if you plan to sell the condo in the future. There’s no way to know how much the condo will appreciate during the next half decade, for example. However, it’s important to make sure you truly want to stay in the condo’s community. If that’s not the case then you should think twice about buying the unit. Otherwise you could get stuck living in place you don’t want to be.

5. Storage Space

This is sometimes an offering of condos. It’s important to find out whether that’s the case if you’re considering a particular condominium. The condo probably won’t have an attic/garage unless it’s a townhouse. So it’s important to ask if the condo includes extra storage where you can store things like bikes and luggage. This could be a major issue if you have lots of stuff and need to store it.