Buyers looking to purchase a home without taking on all of the responsibilities of exterior property management may be attracted to condominiums. Also known as condos, condominiums are individual units housed in a communal building. They give owners access to a variety of community spaces and amenities.
There are certain do’s and don’ts that come with buying a condo. This post will discuss some of them. Understand that when you buy a condo, you are buying into a property that is technically owned by a large group of people. Every condo owner owns a share of the larger property on which all of the units are located.
1. Do Look at Historical Data
Many people go into condo purchases expecting that these are always a good investment. The professionals at Salt Lake City’s CityHome Collective say that this is not always the case. It is true that condos can appreciate just like single-family homes. But they are also at significant risk of depreciation.
Avoiding the risk of finding yourself underwater starts with looking at a property’s historical data. It is a wise idea to look back 10 to 20 years. How has the property maintained its value in that time? How much have the property’s units sold for in recent years? What is the property’s tax history? Historical data can reveal important things about a property that would otherwise remain hidden.
2. Do Look into HOAs
Whether you are buying a condo in Salt Lake City or elsewhere, CityHome Collective said you should take a good look at the HOAs of any buildings you are considering. HOAs with a long history of litigation may prove to be more trouble than they are worth. If you come across an HOA with a list of rules and regulations that seem overly restrictive, carefully consider whether you want to subject yourself to that type of oversight.
3. Don’t Jump at Low HOA Fees
It can be tempting to jump on a property just because it has low HOA fees. It is not that high fees are better, it’s just that low fees don’t necessarily mean you’re getting a good deal. Fees might be low because amenities are limited. They might be low because the HOA for that particular property is cheap. A red flag in this regard would be low HOA fees combined with a property that doesn’t look well-maintained.
4. Don’t Buy Where There Are A Lot Of Renters
If your condo is going to be your primary residence, do yourself a favor and do not buy on a property where there are a lot of renters. This is not a situation you are likely to find in a place like Salt Lake City, but it is fairly common in vacation destinations like South Florida.
It’s not unusual for investors to purchase condos as vacation rentals. They do not actually live in the units themselves, they rent them to vacationers on a week-to-week basis. This is a recipe for your unhappiness. The last thing you want is to live in a building in which the majority of people you see every day are only passing through. It is better to share the property with other full-time residents who care about its upkeep and atmosphere as much as you do.
Condominiums offer a great way to experience home ownership without some of the hassles that come with owning a single-family home. But bear in mind that condos come with their own pitfalls. If you are not familiar with all of the ins and outs of condo ownership, tread lightly. Do not rush into a decision you might end up regretting later.
