Condos typically cost more to own than similar-sized single family homes. Condo fees, due to maintenance and special assessments, are subject to increases over time that raise your financial burden.
More than half of condo owners move out within six years. In contrast, less than 1/3 of single family residents move within six years. Therefore purchasing a condo with a better potential resale value is critical. What to consider?
- Number of bedrooms
- Unit’s location on the floor
- Unit’s location within the building
- Condo association fees
- Rent Limitations
To purchase a condo for investment purchases, consider the following: (Read more: http://www.oprah.com/money/Should-You-Buy-a-Condo-Condo-vs-House-Suze-Orman#ixzz3mIzGVNNq
- At least 90 percent of the condos in the development are owner occupied.
• The annual increase in the monthly maintenance fee for the past few years has not exceeded the general rate of inflation, or about 3 percent.
• Ninety-seven percent of the development’s residents are current with their monthly payments. Remember, it’s the other owners who must make up the shortfall when some owners fall behind.
• At least 10 percent of the association’s annual budget goes into a reserve fund.
• The condo’s roof and major mechanical systems are closer to five years old than they are to 15. If a development requires big upgrades, you could face a costly “special assessment” charge after moving in.
Just because a condo meets your needs, it may not necessarily be easier to sell. The owner of this condo wisely decided to stage her condo with Premiere Home Stagers. An accepted offer was received within 40 days. Call Premiere Home Stagers at 608-345-9396.