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buying a condo

7 Things to Consider Before Buying a Condo

Buying your own house is such a huge milestone that most people look forward to achieving in life. In many markets, people aren’t buying houses but are buying a condo instead.

This makes condos be in huge demand over the recent years. It is not only a statement of the wealthy, but also a worthy investment that is likely to yield a great return on investment.

What Is a Condominium?

A condominium is a complex that an individual can own individually and it can be a section of a building. There are different rules and regulations that govern the ownership of such condos but they differ from country to country. It offers you luxury and fulfills most of your dream home fantasies.

Why Would You Buy a Condo?

When you are planning to invest in a condo, there are reasons why you are doing so. The ultimate goal is to own your own home and have independence from paying rent every month and the other obvious reason is to make it one of your investment properties.

If you are one of those people who feel that buying a piece of land and starting to build from scratch seems like a lot of hard work, then buying a condo should be the option that is suitable for you. Additionally, if you want an asset that is likely to appreciate in value over a few years, then a condo is what you should go for. What are therefore some of the things that you need to consider before buying your condo?

Factors to Consider When Buying a Condo

There are a number of considerations to make before buying a condo, here are some of the most important ones to consider first.

1. Consider Your Long-Term Goals

You need to sit down and analyze your life goals. A condominium is sure a prestigious investment and can be very cost-effective, however, you can’t be sure that it will pass on to your children 50 years down the line.

Consider the next 5 or so years of your life and ask yourself questions whether it will create a drastic change in your future and lifestyle then. Some of the questions you will need to ask yourself are, will you be married by then? Are there any plans or likelihood of you relocating over the next few years? Are you likely going to change careers?

All of these questions should make you reflect and decide whether you should buy a condo. If the plan is not to stay long, then you might need to consider renting instead of buying.

2. Compare the Prices of Different Properties.

condominium

This is very important before you decide to settle on one piece of property. Do your homework on the different properties in different locations. It is very crucial to do so when selecting your condo because it will greatly shape and determine the kind of life that you want to have for yourself and your family. Depending on the location of the condo, the properties will be priced differently. Also consider the cost of living in these locations.

3. Select the Type of Condo That Best Suits Your Needs

There are definitely a number of condos in the offing. You need to select the unit that best suits your needs and preferences.

There are cheaper ones and others that are more costly because of the kind of amenities that they have. Select a condo based on the features amenities that you think you might need. You are in total control and you are the one who knows what you need. Settle for the one that best suits your needs.

4. Make an Informed Decision

Before signing the contract, you need to make sure that you have all the information that you need with regard to that particular condo.

You need to know what exactly are the financial implications that are involved before committing yourself. For example, what are your HOA fees as well as other maintenance costs?

This will help you make an informed decision and weigh the costs involved before making your purchase.

5. Hire the Services of a Professional

Most people think that they can manage on their own when buying condos. Well, you might think that you are cutting on the costs, but you will be at a loss in case anything goes wrong.

Hire the services of a professional lawyer who will guide you through the entire process. A good lawyer will do a thorough background check of the developer, like Precondo, if the condo you are buying is off plan.

You will also save a lot of time and money. Moreover, you can discuss with your lawyer on some of the terms that you would want included in the contract before you apprehend your signature.

6. Consider Taxes

This is a crucial factor that people overlook when looking to buy a condo. There are taxation issues involved, which you ought to be aware of as an investor from the word go.

The only thing that you need to do is to know what are the taxation obligations on your part as a buyer. Different units may have different taxation costs depending on their location. You surely do not want to fall on the wrong side of the law.

7. Consider the Terms of the Contract

There are owners that may include frivolous terms in the contract. You need to go through all these terms and scrutinize them properly before agreeing to sign anything. If there is any term that makes you uncomfortable, you can discuss with your lawyer and the owner of the condo. Voicing out your opinion is a good thing. Never allow yourself to suffer in silence. Know if you are allowed to have pets on the premises, whether or not you are allowed to sublet and such like issues.

In a nutshell, buying your own condo should not be a very difficult task. With the right kind of information, you are most likely going to make a good decision with regards to the kind of unit that you want. Condos are the in thing and you definitely guarantee of a good return on investment.

About the Author James Davis

James is a real estate investor, real estate agent, and is dreaming about financial independence. His focus is residential (1-4) unit rental property, house flipping, and everything real estate.

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  • One addition to point 4 – Get the latest copies of the certified financials of the HOA. You can tell how well managed the building is by looking at the Income Statement and Balance Sheet. Be cautious if they operating with razor thin margins or are deriving income from too many fees and one time assessments.

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