A condominium is like an apartment, and is also called a "condo" for sale. It might just so happen that you're considering buying one right now, and that you think you've found a really good bargain condominium for sale.
As a condominium owner you need to be aware of your responsibility in the homeowners association, which is the group in charge of maintaining and even paying for the costs of the shared areas and services, such as the lobby, security, etc. It's one of the special features of owning a condominium that you really need to interact with other owners as a collective.
There are a lot of things you must think about before buying a condominium, but in this article lets just talk about the top 5 things you need to look for before buying. Of course, as in many other things in life, you need to look underneath the surface. Things which may not readily be apparent on your first or second inspection.
When it comes to the good and the bad, it's the owners who will know best, not the sales representative. Try your best to get a feel of the owner's association. If it's possible to look at the records, or talk to the officers. Ask them what are the biggest issues facing the condominium building right now. Ask them also what are the things they'd like to see changed. This will give you a very good idea of what it would feel like to be a condominium owner here.
It's also important to still consult the records or the minutes, or ask around, even if there aren't any serious complaints. Maybe things have changed from several years before. Maybe there are plans for significant changes in the future, concerning amenities, pricing of services, various parts of the building, etc. This will give you a good idea of what to expect in the future.
Look at how much people have allotted for the repairs and maintenance of the building as a whole, and also for the shared services. A high budget indicates neighbors who really want to maintain the clean look and feel of the surroundings. A very poor budget means people who probably only care for their own condominium units, who are willing to neglect shared areas for the sake of saving.
As a general rule of thumb, if the complex is less than 10 years old it should have a reserve fund of about 10% of the estimated replaceable items (such as roofs, swimming pools, tennis courts, roads, etc.) If it is between 10 and 20 years old the fund should be between 25% and 30%. If it is 20 years old or older the fund needs to be bumped up to 50% or higher.
Play Santa Clause and figure out "Who's been naughty and who's been nice? In other words find out what the delinquency rate of the current owners. If owners aren't paying their dues on time, either there is some discontent or it may indicate that the association is under funded.
Make sure that the insurance is covered well. If you're not proficient in insurance matters then maybe you can ask the help of a lawyer or any insurance agent. There are things which shouldn't be left out in the insurance policy. Also, check if there have been any events in the past that required the application of the insurance, such as fires or theft in the building.
Finally, you have to double check the legal situation of the condominium. Are there any pending complaints against the present homeowners association? Are these major or minor legal troubles? Your best bet is to look for a lawyer who has experience in real estate matters. A good legal record is an indicator of the relative peace inside the building.
Don't let this discussion change your mind about buying a condominium for sale, just use this information as a beginning guide to doing your homework.
As a condominium owner you need to be aware of your responsibility in the homeowners association, which is the group in charge of maintaining and even paying for the costs of the shared areas and services, such as the lobby, security, etc. It's one of the special features of owning a condominium that you really need to interact with other owners as a collective.
There are a lot of things you must think about before buying a condominium, but in this article lets just talk about the top 5 things you need to look for before buying. Of course, as in many other things in life, you need to look underneath the surface. Things which may not readily be apparent on your first or second inspection.
When it comes to the good and the bad, it's the owners who will know best, not the sales representative. Try your best to get a feel of the owner's association. If it's possible to look at the records, or talk to the officers. Ask them what are the biggest issues facing the condominium building right now. Ask them also what are the things they'd like to see changed. This will give you a very good idea of what it would feel like to be a condominium owner here.
It's also important to still consult the records or the minutes, or ask around, even if there aren't any serious complaints. Maybe things have changed from several years before. Maybe there are plans for significant changes in the future, concerning amenities, pricing of services, various parts of the building, etc. This will give you a good idea of what to expect in the future.
Look at how much people have allotted for the repairs and maintenance of the building as a whole, and also for the shared services. A high budget indicates neighbors who really want to maintain the clean look and feel of the surroundings. A very poor budget means people who probably only care for their own condominium units, who are willing to neglect shared areas for the sake of saving.
As a general rule of thumb, if the complex is less than 10 years old it should have a reserve fund of about 10% of the estimated replaceable items (such as roofs, swimming pools, tennis courts, roads, etc.) If it is between 10 and 20 years old the fund should be between 25% and 30%. If it is 20 years old or older the fund needs to be bumped up to 50% or higher.
Play Santa Clause and figure out "Who's been naughty and who's been nice? In other words find out what the delinquency rate of the current owners. If owners aren't paying their dues on time, either there is some discontent or it may indicate that the association is under funded.
Make sure that the insurance is covered well. If you're not proficient in insurance matters then maybe you can ask the help of a lawyer or any insurance agent. There are things which shouldn't be left out in the insurance policy. Also, check if there have been any events in the past that required the application of the insurance, such as fires or theft in the building.
Finally, you have to double check the legal situation of the condominium. Are there any pending complaints against the present homeowners association? Are these major or minor legal troubles? Your best bet is to look for a lawyer who has experience in real estate matters. A good legal record is an indicator of the relative peace inside the building.
Don't let this discussion change your mind about buying a condominium for sale, just use this information as a beginning guide to doing your homework.
About the Author:
The author is someone with decades of experience selling bargain houses and great condos. You can look at a house and lot for sale in quezon city or also great condos such as Mezza Residences.
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