All right here are some tips for you assuming that you happen to be trying to buy a condo and what you ought be familiar with before hand. Initial thing to remember just like not all people are created equal and neither are all homes or condos and more importantly not all Condo associations!
The real estate market has quite a bit of condo complexes and with a good percentage of of them for sale. Some of them are run extremely well and others not at all so well and are underfunded. The problem is when a condo association is having problems and you purchase condo within that association their problems now become your problem. When you buy a condo you basically join a club and take on a portion of the issues which they can be having. So there are few steps which a person needs to keep in mind when considering a condo, as a result of your decision is something which you will have to live with daily as you continue to own that condo.
1) What is the Home Owners Association fee and what does it pay for?
Normally this is merely acknowledged as the HOA dues you can surely discover that some of those HOA dues as high as almost $400.00 per month. Which is an extra $400.00 added to your monthly payment on top of the loan on top of the taxes and on top of the insurance, nevertheless I think you get the concept. The HOA dues alone may make you or break you as to whether you will qualify for that condo or whether you even ought to consider purchasing it. The fee comes from the annual expenses to maintain the common areas such as the club house, the pool etc. It is additionally a result of whether the association is professionally managed or self managed. With the condition that this is going to be your new monthly fee you ought to recognize what your getting for what you pay for.
2) What are the HOA rules?
This may actually make purchasing your condo one really regrettable decision, since the rules might prohibit pets, or even your ability to rent out the unit. You will need to take possession of a copy of the bylaws to see if there will be anything that you may have issues with.
3) Do you know how many renters there are vs. owners?
Frequently renters do not have the similar level of consideration for the property they abide in. Whether it be a condo or a home too many renters tend to give unwanted issues. Some other consideration is that assuming that there is too many renters within the condo complex the condo may not qualify for FHA financing. Even assuming that you were to get an approval for a conventional loan instead of an FHA loan and this was to be your primary home it may have to be financed as investment property due to the high number of renters. A loan for investment property is generally an extra 1-2 points than the going rate for home that would be considered your primary house. This could be a problem for certain communities when a number homes for sale in addition to condos were bought by investors while in the market frenzy the majority of were used as investment properties. Use the link below to find out if the Condo you plan on obtaining will qualify for FHA sponsorship due to having too many renters.
Here is the link to find out if your condo complex may or may not at all be approved just go to:
4) Do you know how much money is in the reserve account for the HOA?
The is probably the most overlooked and never really taken into account until it is too late. Buying a condo you become part owner of the association in addition to all the bills that come with it. So provided that there association is poorly run or funded the condition of the condo complex as a whole can deteriorate. Or a lack of funds can be an indication of possible litigation draining the fund which will eventually require a special assessment in regards to all those that intend to keep there condo units. Is there an increase of delinquent owners if so the reserve fund will come to be drained. Request a copy of their budge to see if there might be any indications for worry. The last you want is to do is to have a condo plan on a budget and get hit with new and higher HOA dues. Don't let this scare you because procuring a condo does have its benefits such as no yard and maintenance for a few of us its merely not at all on the schedule and it does occasionally give you the luxury of having a pool and lets not forget the hot tub. A few Condos even have security which is a nice added benefit for anyone even with kids especially with the condition that you happen to be a single mom. Basically look past the price and make sure you will be happy with the condo association in addition to its rules and fees. Obtaining a condo is not like getting a TV ,,,you can't take it back supposing that you're not happy with it.