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A Realtors take on important things to consider before buying a Condo.
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Purchasing a Condominium Condominiums are units in a building that many times look exactly like an apartment, however, they are sold individually as if they were a house. Although you will own the living space, the rest of the amenities such as a pool, lounge, laundry room, etc., are owned and used by everyone living in the condominium building. Many people find the idea of owning a condominium attractive because they get to have ownership, yet they don’t have to worry about thing like maintenance of the grounds. They are usually popular in areas where houses tend to be expensive, or for singles or couples who don’t need the space in a full house. However, owning a condominium is quite different from owning a house in several ways. Therefore, there are several things to consider before purchasing a condominium. Here are some tips to consider when you are thinking about buying a condo: 1.Condos have homeowner’s associations -- When you buy a condominium, it’s rather like a business agreement between you and all the other residents in the building. Condos have a homeowner’s association which has certain rules, regulations and restrictions that all owner must follow. This agreement is used to spell out things like building maintenance, neighbor relations, pet ownership, quiet hours after 10 p.m., etc. Some condos could have rules you consider strange or quirky, i.e. only allowing a certain color of curtains, so it’s best to review them all in advance. Before purchasing a condo, it’s vital to fully understand everything in this homeowner’s association so you will know if you will be able to live under them and abide by them without any problems.
2. Condos have special association fees Condo association fees are based on the number of units, the cost to maintain the entire property, if it is professionally managed or self-managed, repair fund for major repairs, litigation funds, exterior maintenance like landscaping, mowing the lawn mowing, snow plowing, insurance, water and sewer services, trash collection, road maintenance, etc. Some condos even charge you for things you don’t plan on using like tennis courts, pool or a gym, so if you don’t need those, it could cost you more than you are willing to pay out just to live there. Therefore, you should get a full list of all the monthly dues you would be required to pay and don’t forget; condo association fees aren’t tax deductible like a mortgage can be. For instance, it’s required for a condo association to use a portion of its dues to pay for possible large scale repairs like fixing a roof, etc. If the building is less than 10 years old, that fund should be around 10 percent of whatever that predicted cost would be, but if your building is older than that, it should have a larger percentage of money dedicated to that fund. Plus, ask things like what is the percentage of delinquency of tenants in paying their monthly association dues? If it’s a good condo community, their delinquency rate should be 15 percent or less. If it’s high it could mean you’d be stuck with more of the bill if something like the repair fund comes up short. 3. Condominium insurance is different than homeowner insurance. Condominium insurance is not the same as when someone buys homeowner’s insurance for a house. There will normally be some type of master insurance policy put in place by the condominium association will have a master insurance policy in place, but this could differ depending on the building policy. Be sure to find out if it covers your personal possessions too. Whatever there is, you should read it carefully prior to deciding to purchase a unit in the building so you will know exactly what your costs would be in case of the need for any future repairs.
4. Know the demographics of the people living there It’s also vital to know the demographics of the condo residents. Likely you’d rather live amongst neighbors that are similar to you in age or lifestyle. For instance, if you are a 20 something year old single guy who likes to be able to party with people your own age, then you may not want to buy a condo in a building where a large portion of the residents are senior citizens.’ 5. What are the current residents’ biggest complaints? It’s also a good idea to know what things residents are complaining about the most. Ask for the minutes to the last few association board meetings or talk to a few current residents. It would be prudent to find out ahead of buying one of the units things like whether management is slow to do repairs, or if the noise restrictions or other rules aren’t always enforced fairly. 6. Get the lowdown on the condo’s management team Another vital thing to know in advance is how the management team does business and if they are easy to deal with. You surely wouldn’t want to live somewhere that the management team is not friendly or doesn’t reply to problems or requests in a timely fashion. Find out if the place is self-managed or if there are property managers. If there aren’t any property managers if means owners make these kinds of decisions together. That could mean lower monthly dues, but depending on the views of your neighbors, it also could bring its own kind of problems that may not happen if there are dedicated property managers. Likely you would want to have to live next door to a neighbor whose vote went against you in some sort of disagreement, so that could be a con in a self-management situation.
7. Find out the condo’s reputation Yes even a building can have a good or bad reputation. You should ask the realtor how desirable the units in your building are. Ask things like how long it takes for a unit to sell, and if the unit seems underpriced, be sure to find out what the reason is prior to buying it. What’s doing on in that neighborhood? Is there going to be any new construction or demolition? What businesses are there or could be leaving? All that can play a large part in the livability of the place. You don’t want to find out something is majorly wrong after you signed on the dotted line. 8. Find out the parking situation It’s vital to know that you have a dedicated space to park your vehicles. Plus if you are authorized one space or more than one? It’s best to find one where you are deeded a spot or two than one with first come, first serve style of parking spaces. ___________________________________________________________________________ Claudia Davis, Condominium Specialist Condos For Sale Toronto, Ontario Full Service Realtor, SKYLIFE Real Estate Inc Agent at SKYHUB Canada 905-999-7774 ext. 4022
