Tips for buying condo

Buying a condo is a big step. In fact, it may be the biggest thing you have ever bought, so it’s not something to take lightly. You want to buy one that you will enjoy living in, but as it is an investment as well as an expense, keep some things in mind when you are purchasing a condo. Amenities, maintenance history, the floor the unit is on, and the age of the condo are all things that can change the worth of your investment.

Condo amenities are one of the biggest advantages to condo living, and the biggest selling and purchasing point. Round the clock security and 24-hour concierge services, storage areas, and visitor parking are the basics, but there are usually additional ones offered to make the purchase more attractive. However, if you don’t want to use them, be mindful of the fact that they are going to drive up the monthly condo fees. Gyms, swimming pools, basketball courts, mini golf, an outdoor lounge area or a party room are all examples of things that condo developers offer to make the units more attractive to buyers. It is important to know what you need and what you will use, as maintaining these amenities will cost more as the condo ages.

Maintenance is always a big expense in any kind of home ownership, and the upkeep of maintenance in a condominium is one of those expenses. Before you buy, check to see that the condominium corporation has kept up with those expenses. Not all condo boards are able or willing to do so. When you are buying a condo that has not yet done any major maintenance or faced any big repairs, it means that those repairs are going to come. If something happens, and the condo does not have a healthy reserve fund that will cover the cost, the owners may be asked to contribute to those repair costs. If your condo insurance does not cover re-assessments, it can be a large expense in the short term and in the longer term with higher monthly maintenance fees.

Can you go higher? Units that are on a higher floor cost more initially, as the resell value is higher, so the floor you purchase the unit on will make a difference. Higher floors are attractive to buyers and renters because they usually have a great view, and less noise from the street. Remember, however, that the higher the unit you buy, the more it will cost, but the higher investment may pay off when you are ready to sell.

The age of the condo matters, but there are no set guidelines to follow. Assuming that one is better because it is new, or another one is better because it has some history behind it can make buying a bit tricky. Both have pros and cons. The older condo might be dated in its appearance, amenities and finishings, which might make the purchase price lower, but it could mean that the monthly maintenance fees are higher. However, the older condo might be in a more established neighborhood and have a larger square footage and floor plan. The main thing to remember is the cost of the condo is not just the purchase price but the monthly maintenance fees as well. Take everything into account when you purchase.