It does not matter whether you want to buy your home or you want to leave the burden of purchasing a home behind you, condos are great to own since they require minimal maintenance. However, some trade-offs are associated with buying a condo. Therefore, you should ask the following questions first:
Is the Complex Insured?
This is an important thing to consider. You should check whether the insurance cover of the building is adequate or not. Remember that inadequate coverage may result in serious financial issues or make it difficult for you to get financing. Ensure the association has sufficient coverage for the building. You can verify the coverage through an insurance agent.
How Many People Have Invested in It?
If you are considering financing your purchase, your financial partner may find the complex unsuitable investment because of the number of people who have invested in it. Thus, they may deny you a loan. For instance, if there are several investors, this may become difficult to find the banks that are ready to offer you mortgages. This may have a serious effect on the resale value of the home. Ensure the investors have less than 30% of the building.
Does It Fit Your Lifestyle?
You should note that condos are top ways of owning a home as you do not need to deal with the maintenance costs. In most cases, these are bundled into the monthly fees and professionals can take care of this. It is a good idea to determine how much you are supposed to pay every month and add extra fees to the budget before the deadline.
What are the Reserves?
Although it is quite difficult to get this given information from the association before buying a house, most sellers are willing to provide information about the reserve funds of the property. Checking how much the complex has in its reserve funds can help you determine how the association handles the finances of the complex. In addition, the reserve is needed for unforeseen costs such as new roofs and broken pipes. If their reserve is unable to cover the costs, you may be required to pay the bill.
It can be a smart option to own condos rather than houses. This is because you can own a home without additional work.