What Should I Study Before Buying a Condo?
Research the community before you buy a condo. The HOA may be required to file bankruptcy if it has problems. If you can’t keep up with the dues, lenders may not want to finance your purchase. In addition, unpaid HOA fees can negatively impact resale value. It’s important to understand how much space the condo offers before purchasing it.
Investing in a condo is a good idea
If you are looking to buy real estate, investing in a condo might be the way to go. A condo generally has a high owner-occupancy ratio, which means that most units are occupied. Condos are attractive investments because they encourage owners and residents to take care of their property as well as to be responsible for the community. You may consider buying a condo if you have children.
It’s cheaper than a single-family home
Single-family homes are more expensive and larger than condominiums. You will also have to pay insurance. Homeowners are responsible for maintaining their roof, gutters and landscaping, which is not the case with condos. They may also be responsible for maintaining their lawn and yard. Purchasing a condo or co-op can be a cheaper alternative to a single-family home. However, condos are not as customizable as single-family homes.
It’s easier to be a landlord
One of the advantages of renting a condo is that you don’t have to worry about putting yourself in debt. When you purchase a condo, you will be paying off a large mortgage loan, typically over 15 to 30 years. Your credit and your home may be at risk if payments are not made on time. A rental agreement is easier to break up and has fewer risks. However, there are a few disadvantages to renting a condo.
It’s a smart investment
Do your research about the building’s location, condition, amenities, and other details before you buy a condo. Purchasing a brand new condo will give you a 10-year warranty and will be easier to fix than a used one. But what about maintenance? Does the condo building have a maintenance plan? Are there maintenance fees? Are you willing to pay maintenance fees? Are you sure you can afford them? If not, consider renting the condo instead of buying it.