Buying A Condo Whos Running The Show

Buying A Condo Whos Running The Show

Buying a​ Condo-Who's Running The Show?
When buying a​ condo, we are all seduced by the decor, the ambiance, the view, and other visual effects, when we should really be checking something else that is​ not visual!
The Home Owners Association (HOA) often plays a​ very nondescript part in​ the whole process of​ choosing a​ condo, - especially for first-time condo buyers .​
However, the HOA can play a​ very large part in​ using up your finances if​ you hit an​ unlucky situation after moving in.
In order to​ avoid a​ surprise, ask a​ few pertinent questions about the HOA .​
One of​ the important factors would be 'who is​ running the show?' In a​ very small condo complex it​ may be run by residents, but a​ professional management company is​ preferable, especially in​ a​ condo of​ any size .​
Professional management companies do charge for their services, but they can often save this fee by obtaining lower quotes for repairs, because they will use the same company many times .​
There is​ also less chance of​ the company using their influence on resident votes, so they may be construed as​ more fair .​
Finally, it​ is​ a​ business to​ them, and it​ the HOA will be run as​ such, instead of​ as​ a​ part-time rush before each meeting is​ due!
Always ask to​ see the rules of​ the HOA, the financial report, the by-laws and the minutes of​ the last several meetings .​
The conditions, covenants and restrictions (CC&Rs) will affect your lifestyle, so make sure they 'fit in' with it.
The financial report will tell you if​ there are any big increases in​ the fees coming up, or​ if​ there are any 'emergency' fees due soon .​
This raises the important question, what will happen if​ there is​ a​ big emergency? How is​ it​ paid and how much money is​ in​ the HOA kitty?
The maintenance reserves will be important; there will hopefully be approximately one third of​ the gross annual fees charged to​ all residents in​ the reserves .​
a​ favorable minimum amount would be $4,000 per condo, although is​ manageable .​
Another aspect that the HOA manages is​ the percentage of​ rental units allowable .​
Under 20% is​ passable, but any more and the re-sale of​ the condos becomes risky .​
Renters often do not have the same respect for property or​ neighbors, so they decrease desireability.Also mortgage companies are aware of​ this and are reluctant to​ give out mortgages to​ high-rental complexes.
Once you have ironed out all these questions, you can consider whether you would like to​ get a​ professional inspection done .​
These inspections include the common areas as​ well as​ the condo you are interested in .​
Once all these precautions are in​ place, you will feel more secure to​ go ahead and make an​ offer.

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