A lot of city dwellers and those who want to live in cities choose to live in condos. They do so because condos are convenient since they are usually built inside central business districts. It is easy for you to go to all the convenient places that big cities are well-known for if you live in a condo unit.
You might prefer buying a condo over a house. But do you know the important things you need to know before buying one? Here are some of the things that you need to consider before buying a condo.
1. Know the kind of condos available in the area that is within your budget
There are affordable condo units and there are high-end condo units. Your budget should define your wants. So, set out a budget that you are comfortable with before thinking of buying a condo unit.
Once you decide on a budget, check out the availability of condo units within that budget. Remember that housing units are always going up. More and more people want to buy a condo rather than a house. So, if you have already decided to buy a condo unit within your budget and your wants, close the deal right away.
2. Condos have rules and regulations
A condo complex consists of many floors with each floor having a number of separate units. Usually a condo has only one entrance and one exit for its tenants. Utility entrances and exits are not for the tenants but only for the utility staff of the building.
Certain rules and regulations control the entrance and exit in a condominium. Tenants need to follow these rules and regulations for their own safety and security. You should understand these rules of the condo unit before signing on the dotted line.
3. Know all the costs involved in buying a condo
Aside from the original price of the condo unit, there may be other costs that you have to shoulder. For example, a condo complex is like a housing subdivision. Condos have many tenants just like subdivision housings have many homeowners.
This is the reason why condo tenants have their condo associations. It is like the homeowners association in a housing subdivision. This association handles the utility and security needs of the tenants. These are activities that cost money. So, they will ask you to shoulder part of the expenses. They will ask you to pay certain association dues to cover the expenses.
4. Know if they will ask you to contribute to a reserve fund.
There are condos that require their tenants and owners to contribute to a reserve fund. They will use this fund for the repair and renovation of parts of the condo if they are damaged.
5. Clear with the condo management if you want to use your condo unit as an investment
If you intend to use the condo unit as an investment, check with the condo management first if they allow this. For instance, if you want to rent out your condo unit, check if it is OK with them. And if it is, ask them what the conditions are.
These are but some of the things that you should know before buying a condo unit. Buying a condo unit is not a joke. You should understand the things you need to know before investing your money in it.
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