Buying condos may seem to be a luxury to many. Some think that buying condos is impractical compared to buying a house because condos are way more expensive at a lesser space than a house with bigger lot and floor area.
Condos can be high maintenance, too, because of higher real estate taxes and insurance. Aside from that, you’ll have to spend for some maintenance and repairs should there be any.
What Are The Reasons To Buy A Condo?
Because condos, like houses, can be an investment, too. You can have it rented of selling them on a higher value after five years.
Whether you want to buy a condo for business purposes or personal use, this short buying condos for Dummies will help in choosing the right condo units for you, especially if you are buying condos for the first time.
Tips for Buying a Condo:
1. Don’t Rush into Buying a Condominium Unit
You may be attracted to the building and interior design of the condo, and the other amenities that the condominium development provide such as gym, pool, clubhouse, or a basketball court that is exclusively for the condominium homeowners. So you decide to purchase it, only to find out in the long run that there are other terms which your dealer failed to inform you and seems to be unconventional to you. However, by that time, you cannot at all revoke it since contracts have already been signed.
Check not only the condo itself and the amenities but also the other factors which will be further discussed.
2. Buy a Condo at the Right Time
In reality, no one can really predict when real estate rises or falls, or when the perfect time to buy a condo unit is. Relying on to forecasts of real estate brokers or bank analyses is not advisable as these people and institutions are more concerned with the profits they gain. Check instead on the results and findings of the government regarding the unsold real estate property rates, current and future interest rates and the stability of the overall economy. There are many published reports of these findings on TV, the internet, newspapers, government websites, and other media.
3. Beware of Low down Payment Offers
Some condos offer as low as 3% of the total condo unit value as a down-payment. This gives a wider range of buyers as it makes the condo buying seem to be more affordable. However, there might be additional payments such as a private mortgage insurance which can have a really expensive monthly payment. When summed up, you will be paying more than the actual value of the unit. Also, you may not get any equity in your condo on low down payment offers. To be sure, have a down payment that is at least 25% without having to pay more for private insurance. This gives your buying more stable, and you’ll be more likely able to pay the right value of your condominium.
When looking for Condos For Sale, don’t rush into getting one on the first one you see. Follow these tips to help you guide in buying a condo wisely.