A condominium (condo for short) is a type of housing tenure in which a specified unit of real estate property is owned individually, while shared areas and common facilities, such as lobbies, elevators, and hallways, are jointly owned by all the unit owners in the development.
Are you looking to buy an individually owned residential unit in a building or complex comprised of other residential units? If so, there are many factors to consider before you make your decision.
Here are 10 important things to keep in mind when buying such a Condo:
1. Research the Neighborhood –
You will want to research the neighborhood to make sure it is safe and that it has all the amenities and features you’re looking for.
- Review Property Taxes & Association Fees –
It’s important to research any additional costs associated with purchasing an individual unit in a building or complex. Check with your local municipality for property tax information and contact the condo or homeowner’s association for details on any fees that may apply.
- Read Up On Zoning Laws & Restrictions –
Be sure to read up on zoning laws in your area, as they could impact what types of modifications you can make to the unit or how it is used.
- Assess The Condition Of The Building & Units –
Before making a purchase, assess the overall condition of both the building and individual units by performing inspections and obtaining reports from professional home inspectors if necessary.
- Get An Appraisal Of The Property –
Make sure you get an appraisal of the property before purchasing to ensure you’re not overpaying for it or taking on more risk than necessary.
- Inquire About Special Insurance Requirements –
It’s always good practice to inquire about any special insurance requirements that may be needed when buying an individually owned residential unit in a building or complex, such as flood insurance, earthquake coverage, etc.
- Verify Homeowners Association Rules & Regulations –
Review the homeowner’s association rules and regulations carefully to make sure you are comfortable living within those guidelines, once you purchase the property.
- Ask For Recent Maintenance Reports & Costs –
Ask for maintenance reports and costs from the last few years so you know what kind of maintenance will need to be performed to keep the unit running smoothly once you purchase it.
- Ensure There Is Access To Common Areas & Amenities –
Before signing on the dotted line, ensure that all common areas, like playgrounds, swimming pools, clubhouses, etc., have easy access and aren’t blocked off due to potential liability issues or restrictions put into place by homeowners associations.
- Find Out What Maintenance Costs Are Covered By Owners’ Associations –
Lastly, make sure you find out which types of maintenance costs are covered by owner’s associations and which ones fall onto individual owners before committing to purchase a unit in a complex comprised of multiple units…
Conclusion:
Purchasing an apartment building with separate ownership can be a great investment and provide numerous benefits. However, it is important to consider all aspects before making the purchase, such as maintenance costs of shared areas and potential rental income. With thoughtful consideration, purchasing an apartment building with separate ownership can provide a stable and secure financial future.