TTMA buying an apartment or condo

[Deleted]

Check the association fees and if you can rent it, should you move and not be able to sell.

My last condo association had a rule that only a certain amount of units could be rental properties.

[wedding]

I would treat it the same as buying a house and have a realtor involved. They can help you figure out if it’s a good association in terms of maintenance, keeping a solid balance in reserves, and help navigate the usual purchase stuff. Our first home was a condo in the city. We were looking for a place that had somewhat low monthly fees but a history of good upkeep. We also asked the history on special assessments. In the four years we were there we didn’t have any because our association was very fiscally responsible.

In terms of what to look for in general we wanted to know the makeup of the tenants in the building (renters vs owners; age; familial status). We didn’t want to buy in a place that was mostly renters because they typically aren’t as courteous neighbors. We did have a few in our building and the owner for that unit was the worst because she didn’t live there and just wasn’t that invested.

Since there are so so many changes going on for you right now, is it possible to rent for a year and then decide what to do?

[chickie]

Definitely use a professional real estate agent to help! The associations vary widely between developments, so make sure you know what they do and do not cover. The best thing you can do is stalk the neighborhood - hang out and get a sense of who lives there, etc. There are some pretty strict rules on what agents can tell you about the neighborhood demographics.

[dogbutt]

I rented in a condo building and it seemed like a nightmare. For example the residents were pissed at the associated because hey needed the sunrooms fixed and it was going to cost 10k per condo owner. It was absurd they all felt stuck and couldn’t sell. Not all are like this but I would get a realtor who would understand all the wording for a contract when owning property under an association or whatever it is called. Also I think if I wear looking between apt or townhome I go townhome.

[Deleted]

Just an example, my mortgage in the condo was cheap, but my dues were $225 a month. I didn’t mind bc that included water and all exterior maintenance. However, I did get assessed twice. Once wasn’t bad, but the second was $12k for roofing and a new gate.

[greykitty]

The boring very long post I did a few days ago that got laughed at may be helpful. Yes, get a realtor unless you're familiar with the market. If you start looking at a condo or townhome, get, read and understand the declarations and rules and regulations (my realtor made me read mine). Do check the financials and also read, where possible, minutes of the board meetings. Everything that wedding said. Beware of a history of special assessments or deferred maintenance. If you can, visit with the local police and get a feeling where calls in the area are made.

My association also limits the percentage of rentals to 20%, and also mandates no less than one year rental periods. You also cannot rent your unit (other than to family) until you have owned the unit for two years (anti flipping rule).

Yes, do treat buying any property just as you would a single family home. 

[Bubblegum]

I currently live in a condo, we are building a townhouse as our forever home, and I’m looking at another condo as a rental property so I think I have some experience.
Basically everything everyone mentioned above. Make sure you use a realtor because this is where you’re living and it’s a large purchase.
Look at your condo association and get a review from the board. When we bought our condo we got a full review and financial report.
What are the condo fees? How much do they increase each year? You might be able to afford it now but if it increases 5% each year can you afford that in 5 years? Just throwing out numbers as an example.
Keep in mind that the more amenities ie pool, tennis court, bowling alley they offer the more expensive it is to maintain.
Finally floor plan. Measure measure and remeasure. In my city the average 1 bedroom condo is 500-600 square feet which makes furniture shopping a nightmare. I have also seen some horrendous layouts with kitchens in hallways and bedrooms only big enough for a queen bed.
Good luck!

[sheilathetank]

Read the condo docs cover to cover. Seriously. You would be surprised on what they stick in there. Also find out how often they have special assessments. A well managed condo association wont have many. Just keep in mind that special assessments can jack your condo fees up to be unaffordable and even if you are current on your mortgage, being seriously late on condo fees can put you into foreclosure.

[mb3]

seconding really reading the documents- and make sure you have an excellent real estate attorney. Ours did a great job of deciphering the financials.

For picking one, I’d recommend visiting multiple times, at various times of day. We learned the hard way how poorly soundproofed our condo was after we moved in. It wasn’t so bad before we (and our upstairs neighbors) had kids but after....eesh. And when we sold people definitely commented on it. If possible I’d get a top floor unit.

The only other thing that’s kind of specific is check if the association is managed by an outside company or self managed. They both have benefits and drawbacks. Self managed usually means cheaper assessments but more work. I didn’t mind it as it saved us money and I had time to help research companies when needed and my flexible schedule meant I could easily handle some of the stuff that only happens during the work week, but I knew that if the one neighbor who basically ran everything moved out and we had to switch to a management company we’d have had to redo our budget (assessments would have gone up ~40%).

[judyblume14]

I did zero research when I bought a condo/co-op in a medium COL area. My monthly maintenance fees were about $365 when I moved in, and had increased to $550/month by the time I sold it 9 years later. So, while my mortgage was manageable, that growth of that fee was unpredictable. I had one of the smaller units in the building (2 bed/1 bath), so my fees were the lowest. I also paid special assessments on 3 separate occasions, ranging from $700 to $4,000. The most expensive was contributed toward roof replacement, the other 2 were to fund leak repairs.

I was surprised at first that after the hefty monthly fees we paid, that they'd have to collect special assessments. But once I served a term on the Board and had a better understanding of the costs to maintain an old building, I was just mad at myself for being ignorant.

You should be able to ask the association for financial documentation. As about the pattern of condo fee increases and the number of assessments over the past X years.

[pobre]

I would rent. It was a huge relief for me that I didn't have to take care of anything maintenance wise. You can take your time to figure out where you want to live, if you want a condo or a house, etc.

I rented a townhouse in a gated complex. It felt safe, it has a pool, low/no maintenance. I'm looking to buy once my lease is up this summer.