4 Factors to Consider Before Buying a Condo

Posted on: 15 May 2015

A condo for permanent residential use is an ideal real estate investment. The property type appeals primarily to young professionals and even empty nesters that need to downsize their living space. However, it is a suitable choice for anyone who needs relatively small living space and enjoys expedient living. Unlike most apartments, condominium complexes provide extra services and amenities such as pools, gyms, and maintenance repairs.

If you are interested in purchasing a condo unit, consider these factors before making a commitment.

Condo Fees

You will be required to pay a monthly fee after purchasing a condo unit. The amount is used to cover the insurance and pay for the amenities and maintenance tasks. This is a long-term recurring cost so you will continue paying even after your mortgage is fully cleared.

In many complexes, the condo fee will vary depending on the size of your unit. You should evaluate the financial implications of this expense on your future before signing the contract. It is crucial to note that the fee will increase as the building structure ages because more maintenance will be required. In addition, compare the potential fee in your preferred building with other similar-sized units in other condo complexes.

Reserve Fund

You should inquire about the reserve fund and evaluate the implications if you do purchase a property unit. The reserve fund is basically the amount of money saved for special future expenditures such as major emergency repairs. A building with a larger contingency bank account is a better investment in terms of long-term ownership. If the fund is small, a building emergency will make demands on your personal accounts.

Human Factors

A condo is a shared property therefore you should consider the human aspects of the investment. If your neighbours are not a good match for your lifestyle, you will be frustrated after settling in. It is advisable to purchase a unit in a building where the entire age spectrum is represented.

Alternatively, you can choose a complex where the other residents are in your age bracket and share your way of life. For instance, if you are looking for a condo for your retirement, you may not be comfortable in a complex with loud college-aged students.

Physical Aspects

Evaluate the physical position of your potential condo unit to ascertain that it is right for you. You should consider the potential sources of disturbance such as noise concerns. The acoustical annoyances can include elevator hum, street noise and even condo party room noise depending on proximity.

Start comparing your options by consulting services like 4 One 4 Real Estate.