Condominium buying is an attractive option for many, since the hassles of home
ownership are reduced, with the condominium association managing much of the
maintenance duties, But there are a number of risks. Before purchasing a
condominium unit (new or used) you should investigate the following issues:
- Consider getting a realtor and a lawyer who are familiar with condominium sales
- How is the condominium association organized? Ask a lawyer who is familiar with condominiums.
- Who is the professional condominium management company (if there is one)
and what is their experience and track record? Check references.
- What are the monthly condo fees and how are they allocated? Compare
against similar projects that have been around for a year (and an audit)...low fees may
just be marketing hype.
- How much money is in the reserve fund for long-term repairs? If the roof, walkways or parking
areas are damaged, you could be in for a financial surprise!
- Consider the building's condition. For new buildings, look at the quality
of construction. Some recent condo conversions may have been hastily done.
With older buildings (including office and warehouse lofts), you may consider
a professional inspection.