You’ve no doubt heard of the term money pit. It refers to a house that requires one repair after another after another. Because of how quickly it sucks in money, it’s called a money pit. The good news is, condos are rarely money pits thanks to the homeowners’ association dues that help with the upkeep. The downside is, condos have their own host of potential concerns. Here are a few things to keep in mind.
1. The HOA dues. You do get a lot of benefits from paying HOA dues, but you do have to pay them. On top of your housing payments, this can add up to quite a lot of money. You’ll have to evaluate whether it’s financially in your best interests to pay them, or to do your own landscaping and roofing repairs. If you think saving that money over time is more beneficial, a house might be a better option. But, if your time value and the costs add up to being more than the HOA payments, then a condo might be your best route.
2. The HOA rules. Do you run a business from home? You will need to find out if the HOA allows for commerce. What are the rules on pets? Are you allowed to rent out a spare room for extra income? Are you allowed to paint the exterior a color you like? Can you host parties on your patio or do you have to use the common room? What do they consider the common areas? This is not just talking about the pool or the gym, but rather what pipes are considered common in the walls?
3. Advertising. A new area that is just being built might be spending quite a lot on advertising. As any advertising executive will tell you, ads are designed to get you to spend money. And it might be on a product you might not otherwise buy. It helps to keep your emotions in check and rely on logic. You should also do some homework on the builders. Are they reliable and do they have a good track record? Remember, you are making a big investment. I will recommend Forestville EC
4. Will a condo be enough? Are you just starting out in life and you just need a home to start building equity? Or are you newly married and looking at adding kids to your family? In the latter case, is your condo big enough? How long do you intend to hold onto the home? If you plan on renting out the place once you buy a bigger house, it can add to your income. But if you are planning to only be there a few years, renting a place yourself might be better.
5. If it’s new construction, what exactly are you getting? Is the developer actually adding the features that were advertised in the booklets? Have any of the rules changed since you put down your deposit? What kinds of products are being used in the construction? There have been cases of lawsuits filed about faulty siding, so it pays to do some research. Are the units near you sold, or is the developer going to rent them? If the latter, you might have a lot of turnover.
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