Low prices make this a great time to buy a condominium.
With condominium prices so low, especially in Arizona and Florida, it’s time to think about moving out of your apartment and buying a condo home. If you are trying to get some privacy, perhaps a house is a better choice. However, if a house is not yet within your budget, consider an affordable condo purchase.
Don’t expect a condo to have thicker walls than an apartment. Recent years have seen a number of apartments turned into condominiums. Condo builders also build apartment complexes, so there isn’t much difference in their construction. However, in older sections of cities, unusual higher-end condos converted from old stone mansions or other historic buildings can be found.
When considering a condominium purchase, make sure your real estate agent obtains the following information to help you make an informed decision:
- Determine if construction is up-to-par in newer-built complexes. Sub-par building can be dangerous.
- Research the development company to see if they have filed bankruptcy. If the developers are not stable, consider buying elsewhere.
- Make sure the insurance coverage is adequate, as inadequate coverage leaves your unit vulnerable and can be costly should disaster strike .
- Understand the CC&Rs and bylaws, which are the condo rules and regulations. Can you live with them? Are they enforced?
- Find out the percentage of rental units in the complex. Too many renters suggests a high neighbor turnover, less of a neighborhood feel to the complex, and decreased pride in maintaining personal areas and lower tolerance of rules.
- See if the complex is properly maintained. Are the amenities, such as pool, spa or exercise room in good condition?
- Ask if the homeowner’s association is financially sound. What are the monthly fees and is there any special assessment levied upon owners to cover periodic maintenance or legally required upgrades to common areas or amenities?
Although buying a condominium is less flexible than apartment living and requires a bit more home maintenance, it is cost-effective in the long run. Take advantage of today’s best mortgage prices for condos and, as an added incentive, get the new homebuyer tax credit, too. Plus, your mortgage points and interest are tax deductible.
Photo Credit: dick clark architecture on www.flickr.com.
