Monday, 6 August 2012

Saving Yourself from a Condo Buying Disaster

By Tara Millar


Proudly owning a condominium can have many benefits, such as lower cost to buy and preserve, low upkeep, amenities and more. Owning a condominium is different than owning a single family home. You should remember that you are buying a chunk of a whole. The person unit could also be stunning and in great shape.... however how is the complicated as an entire doing? Many dissatisfied condominium buyers are dissatisfied because they did not know the questions to ask. The next questions should be asked prior to placing a contract on a condominium and should save you much aggravation and grief.

Could I have a duplicate of the Master Deed, Unit Deed and Bylaws? The Master Deed, unit Deed and Bylaws will let you understand precisely what you own and what you are responsible for, what you can and can't do. Something's to search for are pet limitations, parking and rental limitations. If one thing is vital to you make sure you can do it. For example, some complexes won't let you install satellite dishes or let you hire your unit.

Might I see 2 years of the affiliation's assembly minutes? Many associations meet month-to-month or bi-monthly. The minutes will give you a clue as to who are disagreeable about it and if there are any major renovations coming up.

What is this year's finances and how a lot is in the reserve fund? You'll get a notice with the prior year's price range and a pro-forma price range for the present year. See if the association has been running a shortage or a surplus. There should be at the very least 10% of the yearly's price range in reserve to help cover up sudden prices and renovation. If one thing would not appear right to you, ask queries.

What is the past 5 year history for particular assessments and condo price increases? This offers you an idea of how nicely the association is doing financially. If condominium charges are low however they are constantly levying particular assessments it means you can be taking a look at future assessments of a number of hundred to several thousand dollars. Be sure condo fees are retaining tempo with inflation.

Are there any future particular assessments arising or have been discussed? You certainly don't wish to transfer in and be shocked with a particular assessment right away.

How many models are investor owned and how many are owner occupied? Complexes with the next charge of proprietor occupancy tend to be more marketable. Additionally, if the ratio of investor owned turns really high, it will possibly pose an issue in conventionally financing a unit, probably effecting resale.

Is the association is at present concerned in any litigation?-Nothing can consume reserves greater than a court case. This is by no means a good sign.

What's the delinquency rate on affiliation charges? This tells you if everyone is pulling their weight financially. Usually you do not wish to see more than a 10% delinquency.

What's the turnover fee? This offers you an idea if individuals are glad or not. Average turnover needs to be about 7%.

Take the time and do your analysis so you might take pleasure in many years of hassle free living.




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