Condos can be a great method to enter home ownership and not have to think about all the upkeep that goes with a single-family home. People who live in condos can enjoy shared amenities as well as the condominium association handles building maintenance. A condo is a good option if the condo association is able to allow rental. Here are some tips to guide you through the buying process.
What exactly is a condo?
Get started with the fundamentals. Short for condominium, a condo is an individual unit within a multiple-unit property usually an apartment style building or townhomes (though they could be independent homes too). They can comprise an individual unit within a shared structure like an high-rise or in a much smaller walk-up building with more than three units.
If you're considering purchasing a condo you should know the terms of your purchase. The condo is your own unit, no matter what size the building or property is. Additionally, you own a proportional portion of the common areas and common amenities together with the neighbors. This could include pools, parks and playgrounds. They also have exercise facilities, dog-walking zones and other public spaces. The property beneath your building is also included. TMW Maxwell of condominiums are responsible to pay their taxes and utilities, maintenance and upkeep of their exteriors, based upon the neighborhood they reside in.
Five tips to buy an apartment in 2023
1. Consider your lifestyle
Are you tired of having to mow your lawn and trim your hedges? How is the deal with the pressure washing of your driveway? Are you in a position where the cost of laying out $5,000 or more for a brand new roof is going to become a hassle? Living in a condo means less work for maintenance, so if you've answered "yes" to any of the above questions, then a condo might be ideal for you. However, if the desire to have a huge backyard is greater than the amount of time you'll have to devote to maintaining the area, then a different type of property might be the better choice. In the same way, sharing walls, ceilings or floors with someone else seems to be unfavorable, then a condo may not be the answer.
2. Choose a realtor who is knowledgeable of the condominium landscape
It is important to find an agent who's familiar of the process for condos and has an established track record. An experienced realtor will be capable of addressing any issues you might have and guide you through the crucial steps like reviewing the condo agreement documents.
3. Choose the amenities that you desire
Condos can offer a wide variety of amenities. Others may include gyms, grills, as well as luxurious amenities. Make a list of the things you want while working with your agent. Do not just think about basics like budget and location. It is your right to have the use of these facilities when you buy your unit and therefore don't hesitate of making them a part of your dream list. Even amenities that you won't utilize, such as a pool pool, can still add value to your unit.
4. Locate an FHA authorized condominium
Condo mortgages are much more difficult than those for other types of properties. That's because lenders will scrutinize the development of your condo, in addition to your financial standing in the event you are applying for loans.
To determine the most suitable finance, consult a professional mortgage advisor with experience in condos. The Federal Housing Administration (FHA) who insures FHA mortgages, provides an FHA-approved list of condos on their website. Conventional lenders may meet the requirements of the FHA, but If the condominium is not FHA-approved, it could not get a conventional loan, either.
5. Research the property management company
It is important to know who will maintain the property you are purchasing. It is important to ensure that it is well maintained. Paying association fees only to find the facility damaged can be a pain. A poor administration can influence the value of your property and increase the HOA costs.
Find out who is responsible for the condominium's daily operations while you visit the property. The management firm should be able to tell you who is responsible for resident demands or community regulations. Find out about the credibility of the property management company. Find out which other projects the company manages and speak to the board members to find out if the members are happy with their services.