6 Questions to Ask Before Buying a Condo

May 22nd, 2014  |  Home Insurance

Buying a condo and buying a home are two very different things. Even though purchasing property is relatively similar, there are certain questions and considerations that are unique to the condo buying process.

Questions to Ask before Buying a Condo

If you are in the market for a condo, it’s important that you ask and get the answer to the following questions:

1. Is condo living right for me?Not everyone is cut out for condo living and it is very different from living in a house. If you have never lived in a condo before, make sure that the lifestyle is right for you.
2. Is a condo a sound investment?The answer to this question depends on multiple factors such as the location of the property and other real estate market factors. Read up on market trends and talk to your real estate agent about what you can expect in the next few years. What if you have to sell in 5 years? Can you expect to make a profit? What are condos going for in the area? Is pricing on the upswing? These questions will help you with your decision.
3. How much are the condo fees?Condo fees are part of condo living and they vary based on location. Make sure you are clear about how much your monthly condo fees will be and what they are for. Factor these fees in when assessing your monthly expenses and budgeting your living costs.
4. What are the rules and regulations of the condo building?When you agree to buy a condo, you are also agreeing to abide by the rules of the condo association. Make sure you are clear about these rules and how/if they will impact your decision to buy. Again, rules will vary based on condo building.
5. Are there a lot of renters in the building?This is something that many first time condominium buyers tend to overlook. As a general rule, the more units that are occupied by owners rather than renters, the more value you can expect if you decide to sell.
6. What is the reputation of the condo developer?This is one of the most important questions that you need to ask. It can have a major impact on the value of your condo in the future and it can have an impact on the overall quality of your unit. If a developer has a poor reputation and there are known issues with units, it might be in your best interest to keep looking.

When buying a condo, it’s important to leave no stone unturned. Ask questions and get clarification about everything that comes to mind before you sign the documentation. Remember, there is no such thing as a stupid question, especially when you are making such a large investment.