Five things to consider when buying a condo

February 2, 2021

1.  Hidden user fees – when shopping for a condo, make sure to ask for the financial statement and dues that all condo owners share for the common areas, insurance, etc. When calculating your purchase price, make sure to include all HOA/Amenity Dues, co-insurance, and all fees that you as the condo owner might be responsible for, you can find these on the financial statement of the condo association – if they can’t provide, walk away!

2.     Versatile Usage – My husband and I purchased when our daughter was in her third year of college.  After comparing rents around the University of Texas – Dallas, we decided to purchase a condo, and rent to our daughter. The advantage, we got the tax benefit of owning a rental property, and our daughter had a reduction in her overall living expenses. After she moved on after graduation, we just got a new tenant.

3.    Money in the coffers – Back to the financial statement.  One thing I learned when shopping for a condo to purchase is that not all associations have money in their coffers to pay for major expenses such as a new roof. Before you make an offer on a condo, review the reserves the association has on file to ensure that if there is a need for a major repair, the association has the money to cover the costs.

4.     Location, Location, Location – one thing about condos, they are everywhere.  To the baby boomers that want low yard maintenance to the millennials that want to be close to the nightlife, transportation and work, condos have been built in areas that meet almost everyone’s need.  Some condos are now offering settings above retail, include their own dog parks and restaurants and fitness centers, so you literally never have to go very far to get out and about.

5.     Cost effective – Relatively speaking, condos are very cost-effective housing solutions.  Keep in mind that location, amenities, and user fees will drive up the cost, but if you are looking for an affordable solution to the housing market a condominium could be your next stop!

 

Photo by Francesca Tosolini on Unsplash