How to Buy a Condominium

Considered a prime real estate investment for first-time home buyers and senior citizens who are looking to downsize, condominiums are exceedingly popular in the world of real estate, and unless they include luxuries like spas and helipads, can be smaller and less expensive than individual single family homes. In addition they have several advantages, as they contain facilities like swimming pools and tennis courts which can be shared among all the members of the condo. If you are looking to buy a condominium, make sure you take all the factors into account and buy wisely.

• Before you invest, think about how long you are going to stay here – much like buying a house, a condo is a sizeable investment, and you should be aiming to live here for a couple of years at least if you want to recoup closing costs.
• Think carefully about what you want – if a swimming pool or a sauna is not your idea of fun, there is no need to move into a condo that contains these facilities. Look for condominiums that suit your needs and preferences, and choose wisely.
• Visit multiple condos in the area in which you live or are interested in purchasing. Compare the available facilities, the prices, and get to know what is available in the market.
• Once you select the one you want, hire a real estate agent to conduct a market analysis for you. Check to see if the value of the condo and its surroundings is on the rise, and what its value will be in a couple of years. This will help you see if it is worth investing in.
• Apply for a mortgage – it is best to be preapproved before you make your offer, and this will increase the chances of your offer being accepted.
• Meanwhile, investigate the building further – check out the security, the parking, the storage space, and talk to other residents to inquire how often repairs are done, and if there is sufficient soundproofing between the units. You might also want to ask them what issues are hot during home owner’s association meetings.
• Inquire about the HOA’s reserve funds – if they are large, you will probably not be asked for assessment or one-time payments for repairs.  If the fund is not significant, you might want to reconsider your offer.
• Check to see how restrictive or lenient the HOA is, and how often and effectively repairs have been implemented in the past.
• Prepare your personal budget according to what you have learned. Leave enough for association and assessment fees, and make a rough estimate of monthly maintenance costs.
• Finally, once you are satisfied, make an offer and once it is accepted, move to close on the deal.