It is a dream of every other individual to move from a rental house to their own home, the easiest way to step in that direction is to buy a condo. But, there are several concerns over the purchase of a condominium as it is collectively owned. Buying a condo is not like the purchase of a house and there are several things that one must know before buying a condo.
Arranging a Loan
Loan lending organizations have different terms and conditions for condo buyers. Condos are considered different than single houses, and this is an issue for condo buyers. The Federal Housing Administration strictly implements these regulations before approving loans for condominiums. FHA approved loans have a lower cost when compared to private lenders, and it is not very reasonable. To attain a loan backed by FHA for your condo purchase, it is required that the single proprietor own a minimum of 80 percent of the condos. Most of the condos are owned by several investors and getting an FHA-backed loan would be impossible. FHA also has a list of approved condos for loan dispersal, and you should confine your choice to those condos to avail the loan even if you have a perfect condo in consideration which does not come under the FHA list. With private lenders, they are not backed by the government and, above the high rates they also require down payments.
Know the Rules of the Condo
With several people staying in a condo, there are rules put into action to ensure proper functioning so that all people can live in harmony. Some condos have restrictions on owning pets. You should also check if you can independently rent out your condo in future if the need arises. There are quiet hours, rules over using the amenities and common spaces. Before you buy one, check all the rules and make sure that you are comfortable with it.
Condo Functioning Charges
The condominium common areas are managed by the condo association which includes the residents and owners. There are several common expenses like repairs which are levied from the people living in the community. You should try to know what are the charges and also understand the use of this money. The charges are levied on a monthly basis and most condos set aside one-third of the amount collected for emergency requirements. Knowing this is necessary because it is required for the association to have backup funds so that when there is structural damage, the association should be able to use this amount. The association will have a clear presentation of income and expenses, and you can ideally ask for this and also check if it is running on debts or is broken.
Check the Meeting Minutes
Condo associations conduct meetings, and they will have a minutes record. You can ask to see it before making the final decision to own the apartment. The minutes will have all information regarding any legal proceedings, issues with tenants, basic culture of the community, know about a particular problem maker and many other details. If you notice any concerns, you can ideally rethink about purchasing. You can also be aware of the atmosphere inside the building before moving in.
Building Maintenance
A condo as mentioned before has common areas, and it is required by the association to hire staff to keep the common areas clean. In case the condo you are planning to buy does not have a proper maintenance system, it is very likely to have a reduced value in the real estate market in future. Without proper maintenance, it can also be irritating to live in such a community.
Some condos consider only the maintenance of the common areas. Any issues that take place inside your house will have to be handled by the owner. Check the level of maintenance support provided for internal issues like a pipe breakage.
