Thinking about buying a Condominium?
Condominiums continue to be very desirable in resort markets for the obvious reasons and many provide a nice net return year over year.
Here are a few things to consider when looking for a condominium.
Condition? What is the condition of the unit you’re considering –the building and the complex as a whole.
Common areas? Are these maintained to your standard
How many are for sale in the complex ? If the is an over abundance, could this be a red flag about the complex.
Condo fees? How much are the association fees and what all is included in the fees.
Budget? In the current year budget do they have a plan for normal maintenance items, are there reserves to cover emergencies. Is there a special assessment?
Arrears? From the budget are there any units in arrears? If so how many?
Debt? Is there a lot of outstanding debt?
Lawsuits? Is there any current litigation, if so what?
Insurance? Is the insurance current, master policy, is it replacement coverage, and is there flood and fidelity?
Parking for owner and guest? Is there adequate parking?
Storage? Is there any additional storage not seen?
Management? How complex is managed, local owners or is there a professional management company?
Rent? Any restrictions that would limit owner from renting?
FAQ’s ? Does HOA provide?
Ask for condominium documents. The documents can list restrictions regarding pets, cars, parking, rentals and noise, as well as requirements by the owners when doing anything to the unit.
You are entitled to:
Declaration of Condominium.
Articles of incorporation, bylaws and rules.
Most recent year of financials
FAQ and answers document