7 Simple Tips to Buy a Condo
If are planning to buy a condo, there are crucial points you need to know. Buying a condominium is a considerable decision which will surely has an impact on your life, either good or bad. This is the place where you will live and spend most of your time, may be the rest of your life. Clearly this is not something to be taken lightly.
Choosing a condo is not only about selecting a home, but also about living surroundings and neighborhoods. When you find a condominium with a price that meets your budget, do not overlook the importance of common areas, neighbors and amenities: pool, parking, fitness club, and others.
7 Simple Tips to Buy a Condo
- 1. Plan and Evaluate your Finances
Before undertaking anything, establish a financial budget. Saying you want to buy a condo without first having enough finance to do so is like dreaming. You need a plan. Buy a small notebook, take notes, evaluate your income, and check your credit score before you go to the bank.
When you want to get a mortgage loan, ask for the maximum amount you are willing to pay. This way, you will have to negotiate at this price or less. Establishing such discipline will prove very useful when you start visiting condos. In addition to the mortgage, do not forget to include in your expenses the costs of closing, moving and notary, as well as transfer duties.
- 2. Assess the Condition of the city
At least you are also a trouble maker, the safety and quality of the location you live should be highly important to you. Who would like to live in a location troubled by violence, riots, and crimes? So do some research on the city where you are planning to buy the condo. Start by going around the places you like best and where you see yourself spending the rest of your life, and choose the place that appeals to you the most.
Google search is also useful. This is 2017; you don’t need to leave your house to have an idea about any location. Visit city-data.com and enter the name of the city on which you need information. Some important points to take into account include school performance, divorce rate, public transportations and utilities, shops, infrastructures … and many other crucial points that your family needs to live a normal life. City-data.com will provide you all these details, 100% free.
- 3. Assess the Condition of the Condo
Now that you have found a safe location to move with your family, you need to focus on the condition of the condo you are planning to buy. First, you need to visit the condominium. In some cases you may need professional inspection for peace of mind. It is important to also consult the following documents: preliminary contract with the builder, the number of condos the building has, the inspection report and the warranty plans. You can always ask your notary for advice, even if the builder requires you to consult his own notary.
- 4. Buy a condo, not unnecessary luxurious amenities
Some luxuries are not really important; at least you are a public figure looking to show off, you do not need them. You do not need all the extravagant options offered in your building. You goal is to buy a condo, not expensive luxuries. This will save you money. For instance, do you really need a swimming pool on the roof? After all, if you don’t take care of this so-called luxury it will look like a nice bowl of icy soup with dead leaves. Is a custom-built projection room really necessary? Not really. You can buy your own home theaters and invite your friends at home. The idea here is to use common sense, avoiding unnecessary luxury amenities if you are not financially fortunate.
- 5. Search for Promotions
Thanks to the internet, now you can compare many products or services within seconds with just one click. Therefore, visit real state websites that offer promotions and sales. Sometimes promotions include additions, which is why it’s a good idea to check if they include appliances, air conditioning, toilets… These aspects can weigh heavily in the balance. Sometimes, appliances are only included if you buy the condo in its pre-sale phase. Make sure you know exactly what you will get for your money. You can save a lot if everything is included in the purchase price.
- 6. Ask for recent financial documents
In addition, you need to read the recent financial documents. The latest financial statements will allow you to evaluate the financial status of the building. Take advantage of it to check paid and unpaid condo fees, expenses incurred in the last year, debts and amounts accumulated in the “provident fund”, which is intended to cover major expenses.
A deficit budget or an insufficient provident fund can lead to additional financial contributions for all co-owners. It is therefore important to analyze these documents to properly assess the risks you run.
- 7• Get Information on maintenance work
In order to assess the financial situation of the building, you must take into account previous work carried out and the work to be done. For example, if the roofs, windows, balconies, elevators, garage doors or asphalt should be repaired, changed or renovated? In case major works remains to be done, does the union have enough money to cover these costs?
When it comes to buying condos, it is highly recommended to have professional support. This can avoid not only legal but also financial problem in the long run. Fortunately, you don’t have to pay for every single assistance. Certain institutions offer free real estate information to potential buyers. Take advantage of those organizations to get critical information that your bank would not tell you.