What you wish you knew before buying your condo
July 5, 2024 9:09 AM Subscribe
I've been casually condo-searching for the past 3 years. My current rent is wayyyy below market so I'm waiting for the right find before making the leap. Over the past few years I've learned a few facts/tips about buying condos. If anyone has experience or strong opinions, could you add to my list of condo wisdom facts?
I've been casually condo-searching for the past 3 years. My current rent is wayyyy below market so I'm waiting for the right find before making the leap. Over the past few years I've learned a few facts/tips about buying condos. If anyone has experience or strong opinions, could you add to my list of condo wisdom facts?
- Be wary of cheap condo fees on older buildings because you may land a bill for $75k in one day.
- Buying in a condo with elevators and indoor common spaces means condo fees will be expensive. If you buy in a place where entrances are separate and you don't have fancy shared amenities, your fees will be more manageable.
- Condo fees are generally calculated according to your square footage
- You will generally be making a better investment by buying a freehold property (non condo). However, this is nearly impossible for the majority of individuals due to the skyrocketed cost.
- Anything built in the past 10 years is going to be very tiny and very expensive. A lot of new builds in Canada, for example, were designed with investors in mind rather than people who actually want to live there. That's why you see many 1 bedrooms of 500 square feet or less sitting empty. They are too small to live in and too expensive to rent out.
- Learn about the condo board management before buying because it can make or break your experience.
- Always check square footage rather than number of rooms.
- Condo inspections will only look at your unit. It's possible for them to miss structural problems that exist elsewhere in the building as a whole.
- Buying with the expectation of making a profit or as an investment is getting less and less possible. Better to buy something you could reasonably live in for the long term.
I've been casually condo-searching for the past 3 years. My current rent is wayyyy below market so I'm waiting for the right find before making the leap. Over the past few years I've learned a few facts/tips about buying condos. If anyone has experience or strong opinions, could you add to my list of condo wisdom facts?
- Be wary of cheap condo fees on older buildings because you may land a bill for $75k in one day.
- Buying in a condo with elevators and indoor common spaces means condo fees will be expensive. If you buy in a place where entrances are separate and you don't have fancy shared amenities, your fees will be more manageable.
- Condo fees are generally calculated according to your square footage
- You will generally be making a better investment by buying a freehold property (non condo). However, this is nearly impossible for the majority of individuals due to the skyrocketed cost.
- Anything built in the past 10 years is going to be very tiny and very expensive. A lot of new builds in Canada, for example, were designed with investors in mind rather than people who actually want to live there. That's why you see many 1 bedrooms of 500 square feet or less sitting empty. They are too small to live in and too expensive to rent out.
- Learn about the condo board management before buying because it can make or break your experience.
- Always check square footage rather than number of rooms.
- Condo inspections will only look at your unit. It's possible for them to miss structural problems that exist elsewhere in the building as a whole.
- Buying with the expectation of making a profit or as an investment is getting less and less possible. Better to buy something you could reasonably live in for the long term.
My aunt was in a condo where all maintenance was done by the original builder; the work was good, but rates were not competitive. It's how they continued to profit from the project.
There are no conflict-free condo associations. Somebody has a idea they think everyone will love, and they are angry and resentful when it turns out the association doesn't want to fund it.
posted by theora55 at 9:34 AM on July 5 [1 favorite]
There are no conflict-free condo associations. Somebody has a idea they think everyone will love, and they are angry and resentful when it turns out the association doesn't want to fund it.
posted by theora55 at 9:34 AM on July 5 [1 favorite]
Those are all excellent facts.
Does the condo have adequate reserves (savings)? Do they have a funding/investment strategy? Do they track anticipated capital expenses to have some idea of what's coming down the pike (reserves study)? Is the budget current? Have the books ever been audited?
Look for lawsuits involving the condo - is it paying its bills, and are the owners paying dues? Also, are there a lot of police calls to the place?
Does the condo have a professional management company? If not, run away.
How big is the condo? A small association where many/most owners are on the Board by necessity is not ideal.
If the condo has an annoying or substandard feature that requires Board consent to change, assume that you will never get Board approval for the change.
Likewise, any proposal that requires the (volunteer) Board to do legwork may well go nowhere.
What is the process for maintenance requests? And Board decisions generally? There should be quick, easy explanations for both of these, ideally.
posted by mersen at 9:46 AM on July 5 [8 favorites]
Does the condo have adequate reserves (savings)? Do they have a funding/investment strategy? Do they track anticipated capital expenses to have some idea of what's coming down the pike (reserves study)? Is the budget current? Have the books ever been audited?
Look for lawsuits involving the condo - is it paying its bills, and are the owners paying dues? Also, are there a lot of police calls to the place?
Does the condo have a professional management company? If not, run away.
How big is the condo? A small association where many/most owners are on the Board by necessity is not ideal.
If the condo has an annoying or substandard feature that requires Board consent to change, assume that you will never get Board approval for the change.
Likewise, any proposal that requires the (volunteer) Board to do legwork may well go nowhere.
What is the process for maintenance requests? And Board decisions generally? There should be quick, easy explanations for both of these, ideally.
posted by mersen at 9:46 AM on July 5 [8 favorites]
When you buy a condo (in BC anyway), you get access to the depreciation report, meeting minutes, annual report of the strata. Read these carefully. My real estate agent had some AI tool to summarize, which was helpful as a shortcut to find important things to read. What you are looking for is a record of proactive maintenance, an appropriately sized contingency fund for the age of the building, and strata fees sufficient to satisfy the upcoming maintenance identified in the depreciation report. Your lawyer can also help you find red flags.
Be mindful of the development plans in your local area. While it is currently not profitable to do a strata windup and redevelop, in 5-10 years economics may change. In BC I expect almost every low rise condo from the 60s and 70s to be candidates for the wrecking ball in under 20 years. Something to keep in mind.
The 90s were the leaky condo era in BC so any building from the 90s needs to be fully rain screened. This would be in strata minutes.
You need to look at various new builds and see if they meet your needs. My parents moved into a brand new pet friendly 850 sq foot two bedroom condo with decent finishes and a view, the properties are out there. You will pay for this, of course. Research the property developer, there are good and bad developers in every city.
posted by shock muppet at 9:52 AM on July 5 [2 favorites]
Be mindful of the development plans in your local area. While it is currently not profitable to do a strata windup and redevelop, in 5-10 years economics may change. In BC I expect almost every low rise condo from the 60s and 70s to be candidates for the wrecking ball in under 20 years. Something to keep in mind.
The 90s were the leaky condo era in BC so any building from the 90s needs to be fully rain screened. This would be in strata minutes.
You need to look at various new builds and see if they meet your needs. My parents moved into a brand new pet friendly 850 sq foot two bedroom condo with decent finishes and a view, the properties are out there. You will pay for this, of course. Research the property developer, there are good and bad developers in every city.
posted by shock muppet at 9:52 AM on July 5 [2 favorites]
Check on the owner occupancy rate. I lived next to a unit that was rented out. It was suboptimal. The board meeting minutes are often enlightening.
posted by funkaspuck at 9:54 AM on July 5 [2 favorites]
posted by funkaspuck at 9:54 AM on July 5 [2 favorites]
Condo fees are not always calculated by the square foot. In the condos I looked at, and in the one that I own, the fees are the same for every unit. That might be the standard here, I don't know.
I bought my condo not only because I liked the area, but also because the only amenities are an elevator and a small workout room. I would not have bought a place with pools, tennis courts, or large grounds. It sounds like you have this already thought through.
Ask questions about the condo's reserves. Not only do they have them, but how they manage and allocate them. Are they invested? How, who gets the return and what is the risk? How are they used to maintain the building? How and when are those decisions made.
In 2021 a poorly-maintained condo collapsed in Miami, Florida. After that tragedy, many US states revised their laws about the required size of condo reserves and condo fees, including in some cases mandatory condo fee increases each year. If this applies in your jurisdiction, ask questions about how the condo has responded to these legal changes, and what their plans are for the next few years. My condo originally adopted a plan that included exponential rate increases (I'm using the word exponential in it's true, mathematical sense, not in its colloquial sense). After I demonstrated that to them, they revised the plan. They hadn't intended to do that!
posted by OrangeDisk at 9:56 AM on July 5 [2 favorites]
I bought my condo not only because I liked the area, but also because the only amenities are an elevator and a small workout room. I would not have bought a place with pools, tennis courts, or large grounds. It sounds like you have this already thought through.
Ask questions about the condo's reserves. Not only do they have them, but how they manage and allocate them. Are they invested? How, who gets the return and what is the risk? How are they used to maintain the building? How and when are those decisions made.
In 2021 a poorly-maintained condo collapsed in Miami, Florida. After that tragedy, many US states revised their laws about the required size of condo reserves and condo fees, including in some cases mandatory condo fee increases each year. If this applies in your jurisdiction, ask questions about how the condo has responded to these legal changes, and what their plans are for the next few years. My condo originally adopted a plan that included exponential rate increases (I'm using the word exponential in it's true, mathematical sense, not in its colloquial sense). After I demonstrated that to them, they revised the plan. They hadn't intended to do that!
posted by OrangeDisk at 9:56 AM on July 5 [2 favorites]
Buying in a condo with elevators and indoor common spaces means condo fees will be expensive.
Make assumptions at your own risk. The 12-story building in which I bought a unit had a lobby with a receptionist - great for announcing visitors and accepting packages from UPS, but there were unexpected drawbacks. I assumed as part owner of the building, I'd be issued a key for the side doors, so I could avoid the lobby. Wrong - those side doors were for resident exit only.
Turned out I was not a good fit with that condo's culture and surroundings, so I sold and evacuated after just a few years, never to condo again.
posted by Rash at 10:16 AM on July 5
Make assumptions at your own risk. The 12-story building in which I bought a unit had a lobby with a receptionist - great for announcing visitors and accepting packages from UPS, but there were unexpected drawbacks. I assumed as part owner of the building, I'd be issued a key for the side doors, so I could avoid the lobby. Wrong - those side doors were for resident exit only.
Turned out I was not a good fit with that condo's culture and surroundings, so I sold and evacuated after just a few years, never to condo again.
posted by Rash at 10:16 AM on July 5
Ask questions about the condo's reserves. Not only do they have them, but how they manage and allocate them. Are they invested? How, who gets the return and what is the risk? How are they used to maintain the building? How and when are those decisions made.
Seconding this hard.
Try to get ahold of the most recent financial statement that board circulated to owners at the annual meeting and look carefully at how money is flowing out, whether it matches your impression of the state of the building, and - most importantly - what the state of the reserves are vs. recent big expenditures or ones that you suspect the building may need (the latter being, as a condo buyer, in part impressionistic and likely to be inaccurate, unfortunately - ask your inspector for her or his general impression of the building anyway, as a good one can have a second sense for looming problems).
20 years ago, as a total rube, I bought into a building that had merely OK reserve levels and a *lot* of deferred maintenance, some of which was invisible, decades old, and not on the radar of anyone then serving on the board. This inaugurated a ten year period during which we replaced every window in the building, had to do a partial foundation excavation to deal with subsurface pointing, and then replaced the elevator. Hundreds of thousands of dollars, which pushed us into the red for a time, required a special assessment, and led to tons of internal acrimony due to varying tolerances for dilapidation, levels of denial about the state of the building, and ability to pay. Not fun at all.
TLDR; once you're in a condo, its finances are to some degree yours - proceed with caution.
posted by ryanshepard at 10:20 AM on July 5 [10 favorites]
Seconding this hard.
Try to get ahold of the most recent financial statement that board circulated to owners at the annual meeting and look carefully at how money is flowing out, whether it matches your impression of the state of the building, and - most importantly - what the state of the reserves are vs. recent big expenditures or ones that you suspect the building may need (the latter being, as a condo buyer, in part impressionistic and likely to be inaccurate, unfortunately - ask your inspector for her or his general impression of the building anyway, as a good one can have a second sense for looming problems).
20 years ago, as a total rube, I bought into a building that had merely OK reserve levels and a *lot* of deferred maintenance, some of which was invisible, decades old, and not on the radar of anyone then serving on the board. This inaugurated a ten year period during which we replaced every window in the building, had to do a partial foundation excavation to deal with subsurface pointing, and then replaced the elevator. Hundreds of thousands of dollars, which pushed us into the red for a time, required a special assessment, and led to tons of internal acrimony due to varying tolerances for dilapidation, levels of denial about the state of the building, and ability to pay. Not fun at all.
TLDR; once you're in a condo, its finances are to some degree yours - proceed with caution.
posted by ryanshepard at 10:20 AM on July 5 [10 favorites]
If you are able to talk to someone who lives there, try to get a sense of how long people live there. Long tenures are a good sign.
You can also see if there are association events and times when neighbors get together. I appreciate the neighborly vibe of our association but even if you don’t, it shows that people are invested in the place and will want to take good care of it.
posted by mai at 10:48 AM on July 5
You can also see if there are association events and times when neighbors get together. I appreciate the neighborly vibe of our association but even if you don’t, it shows that people are invested in the place and will want to take good care of it.
posted by mai at 10:48 AM on July 5
-Find out about upcoming assessments. My sellers sold me my place right in time for me to pay 3K on a fence project that had been in the works for a long time. It's not that big a deal and it doesn't at all make me regret buying the place, but it was a bit of a rude awakening when it happened.
-probably overly specific example to follow but think about noise: I bought a place right by the pool. I imagined normal adults sitting by the pool noise and not "one guy has three feral boys under ten" noise. Another place I looked at I was fortunate to visit right in time to hear downstairs neighbors blasting music. Maybe even knock on the door of the next door unit and ask about sound insulation in the complex.
posted by less-of-course at 11:06 AM on July 5 [1 favorite]
-probably overly specific example to follow but think about noise: I bought a place right by the pool. I imagined normal adults sitting by the pool noise and not "one guy has three feral boys under ten" noise. Another place I looked at I was fortunate to visit right in time to hear downstairs neighbors blasting music. Maybe even knock on the door of the next door unit and ask about sound insulation in the complex.
posted by less-of-course at 11:06 AM on July 5 [1 favorite]
Does the condo have a professional management company? If not, run away.
How big is the condo? A small association where many/most owners are on the Board by necessity is not ideal.
Came to second these two in particular, hard. Years ago I bought into a small, 8-unit condo building, thinking that I'd have the best of both worlds, with a small enough organization to have a say in what went on but with protection from the big decisions and financial impacts of a freehold. Instead, the situation turned out to have all the hassles of both condo ownership and individual ownership, with all of us subject to the whims of the board, including on sudden special assessments, while being drawn into almost every dispute/discussion. The fact that the place was self-managed made it all worse. There were never enough volunteers for all the tasks and resentment was through the roof.
In addition to the great items you have on your list, it is worth checking what kind of insurance they have, and whether or not it covers acts of negligence or omission by the board.
Also, try to get a sense of the demographics of the place. Go for a walk there at different times of the day and see who is around, what the noise levels are etc.. Talk to dog-walkers, they are usually a good source of info. More retirees can be good in the sense that there will probably be enough volunteers, but they can bring their own set of interests. I would also ask if the board is made up entirely of owners because in some jurisdictions, non-owners (often real estate lawyers, agents, property managers etc.) can be appointed, and they might not make the same decisions an owner would.
The Condominium Authority of Ontario offers a lot of free resources and advice. It's targeted to the province, but some of it is generic enough to be useful elsewhere.
My personal conclusion was that my next place will be either a very large and professionally managed condo association or--more likely-- a freehold townhouse or detached home. There's no way to avoid hassle entirely but I'd like it to either be out of my hands or within my control.
posted by rpfields at 11:06 AM on July 5 [1 favorite]
How big is the condo? A small association where many/most owners are on the Board by necessity is not ideal.
Came to second these two in particular, hard. Years ago I bought into a small, 8-unit condo building, thinking that I'd have the best of both worlds, with a small enough organization to have a say in what went on but with protection from the big decisions and financial impacts of a freehold. Instead, the situation turned out to have all the hassles of both condo ownership and individual ownership, with all of us subject to the whims of the board, including on sudden special assessments, while being drawn into almost every dispute/discussion. The fact that the place was self-managed made it all worse. There were never enough volunteers for all the tasks and resentment was through the roof.
In addition to the great items you have on your list, it is worth checking what kind of insurance they have, and whether or not it covers acts of negligence or omission by the board.
Also, try to get a sense of the demographics of the place. Go for a walk there at different times of the day and see who is around, what the noise levels are etc.. Talk to dog-walkers, they are usually a good source of info. More retirees can be good in the sense that there will probably be enough volunteers, but they can bring their own set of interests. I would also ask if the board is made up entirely of owners because in some jurisdictions, non-owners (often real estate lawyers, agents, property managers etc.) can be appointed, and they might not make the same decisions an owner would.
The Condominium Authority of Ontario offers a lot of free resources and advice. It's targeted to the province, but some of it is generic enough to be useful elsewhere.
My personal conclusion was that my next place will be either a very large and professionally managed condo association or--more likely-- a freehold townhouse or detached home. There's no way to avoid hassle entirely but I'd like it to either be out of my hands or within my control.
posted by rpfields at 11:06 AM on July 5 [1 favorite]
-Also: know that the condo board and management company are going to at some point be a thorn in your fucking side. It's inevitable. I made a classic "ask for forgiveness, not permission" error and informed the mgmt company that I'd be moving in on [date] with two UHaul Pods and people who run for condo boards tend to be people with a bit of the cop about them who may find conflict where there is none. There was a pretty tense exchange of emails about this utterly 100% standard thing.
posted by less-of-course at 11:13 AM on July 5 [2 favorites]
posted by less-of-course at 11:13 AM on July 5 [2 favorites]
If possible, gather some information about the condo's demographics. Using my house an example, when I moved it, decades ago, there were lots of families with kids, cats and dogs. Now, looking around, it's more like a retirement community. This might be a factor if you have children of your own, or wish to avoid other people's children. (Frankly, I miss seeing kids around the place.)
posted by SPrintF at 11:50 AM on July 5 [1 favorite]
posted by SPrintF at 11:50 AM on July 5 [1 favorite]
Definitely read all of the HOA guidelines before you commit. I lived in a condo that governed the color and type of window covering you could have, which was very annoying.
posted by TwoStride at 12:01 PM on July 5 [1 favorite]
posted by TwoStride at 12:01 PM on July 5 [1 favorite]
Re upcoming assessments: sellers are supposed to disclose these, but that means assessments that have been approved by the Board/owners. Work that is very likely necessary and will cost money but they haven't pinned down how much and how to pay for it yet is not the type of 'upcoming assessment' that has to be disclosed in my area. Neither is "we are going to spend every penny the condo has on this bill and then do an assessment when it turns out we're broke."
Oh, also: if there are multiple buildings on the property, are they all in the same condo association, or separate associations for each building? The builder may have had incentives to set them up separately and never bother merging them.
Someone mentioned renters: owners who live in the complex have different interests than owners who rent out their units, generally. Ideally you want to be in the majority. Also, artificial limits on renting can create perverse incentives to keep bad renters, depending on the specifics of the rule.
(FWIW, I traded up exactly like rpfields suggests. If I'd initially bought into a large, stable, well-run complex, I might still be there.)
posted by mersen at 12:07 PM on July 5 [1 favorite]
Oh, also: if there are multiple buildings on the property, are they all in the same condo association, or separate associations for each building? The builder may have had incentives to set them up separately and never bother merging them.
Someone mentioned renters: owners who live in the complex have different interests than owners who rent out their units, generally. Ideally you want to be in the majority. Also, artificial limits on renting can create perverse incentives to keep bad renters, depending on the specifics of the rule.
(FWIW, I traded up exactly like rpfields suggests. If I'd initially bought into a large, stable, well-run complex, I might still be there.)
posted by mersen at 12:07 PM on July 5 [1 favorite]
When you’re looking at places, ask about the condition and type of HVAC. Turn on the AC or heating while you’re there to get a feel for if you like the way the air feels.
Avoid glass condos, glass has a life span and boards never want to replace windows. Also they are atrocious for insulation. May not be possible everywhere .
posted by cotton dress sock at 12:12 PM on July 5
Avoid glass condos, glass has a life span and boards never want to replace windows. Also they are atrocious for insulation. May not be possible everywhere .
posted by cotton dress sock at 12:12 PM on July 5
If you're in an area where it's relevant, ask if they have earthquake insurance. In California, it's extremely relevant. My HOA was facing the need to increase the dues in order to be able to afford it, and I was the only owner who was willing to increase the dues to keep the EQ insurance in place. They outvoted me and the earthquake insurance was cancelled. They literally told me "I guess we'll just call FEMA if the big one happens..." (Unbelievable. I sold my unit because of that).
Also, beware a small complex. You'll be forced to be on the board, and sooner than you think you'll be the person with the most seniority/history with the place, and everybody will look at you with bambi eyes and say "What should we do, winterportage?" and stick you with figuring everything out.
posted by bluesky78987 at 1:18 PM on July 5 [1 favorite]
Also, beware a small complex. You'll be forced to be on the board, and sooner than you think you'll be the person with the most seniority/history with the place, and everybody will look at you with bambi eyes and say "What should we do, winterportage?" and stick you with figuring everything out.
posted by bluesky78987 at 1:18 PM on July 5 [1 favorite]
Our condo turned out to be violating the law in many respects: not holding elections, not issuing budgets, not maintaining sufficient reserves. One owner ran the building as her own domain and had to be dislodged with a lawsuit.
This is probably rare, but make sure budgets are available and look reasonable. Ask when board meetings occur.
We've had terrible experience with two small management companies. Both were aware of a repair demanded by our town, raised a $40,000 special assessment to deal with it, and simply never did. I don't know how you check for that, but if there were recent special assessments you can ask whether the associated work was actually done, and you could ask if there are outstanding citations from your town, or requirements imposed by the insurance company.
posted by zompist at 2:05 PM on July 5
This is probably rare, but make sure budgets are available and look reasonable. Ask when board meetings occur.
We've had terrible experience with two small management companies. Both were aware of a repair demanded by our town, raised a $40,000 special assessment to deal with it, and simply never did. I don't know how you check for that, but if there were recent special assessments you can ask whether the associated work was actually done, and you could ask if there are outstanding citations from your town, or requirements imposed by the insurance company.
posted by zompist at 2:05 PM on July 5
What rules/restrictions are in place for Airbnbs/short-term rentals (this will also depend on your jurisdiction). Some function basically as hotels which can be extremely disruptive from what I’ve heard - especially in the summer (in my area). My building is much more restrictive and follows the bylaws to a T, though unfortunately this means (often illegal) STR owners circulate fear-mongering letters, brigade our AGM meetings and try to vote down every resolution out of spite and/or disinterest in long-term planning. Thankfully most owners are pretty engaged and most resolutions pass; this sort of thing will show up in your AGM. Honestly unless you’re super interested in Airbnbing out your space yourself, I’d recommend avoiding a building that allows them altogether if possible.
posted by thebots at 4:35 PM on July 5
posted by thebots at 4:35 PM on July 5
I lived in a condo that governed the color and type of window covering you could have, which was very annoying.
This is pretty common; the motivation is usually to ensure that the building exterior has a reasonably consistent appearance. However, there are a lot of options that are white on the outward-facing side and whatever color you want to look at on the inward facing side!
One thing I would look for is that the building regularly does maintenance projects. That means that they're staying on top of things and keeping a budget that assumes they'll have maintenance come up.
posted by Blue Jello Elf at 5:06 PM on July 5 [1 favorite]
This is pretty common; the motivation is usually to ensure that the building exterior has a reasonably consistent appearance. However, there are a lot of options that are white on the outward-facing side and whatever color you want to look at on the inward facing side!
One thing I would look for is that the building regularly does maintenance projects. That means that they're staying on top of things and keeping a budget that assumes they'll have maintenance come up.
posted by Blue Jello Elf at 5:06 PM on July 5 [1 favorite]
Definitely figure out your stance on AirBnb. And remember that down the line, if you get another place, YOU might want to convert the condo into an AirBnb, which could bring in 1.5x - 3x more than the market rent, depending on your location!
If you're in a downtown area, it is probably VERY worthwhile to ensure you also buy a parking spot! It's also a potential source of rental income.
posted by nouvelle-personne at 6:14 PM on July 5 [1 favorite]
If you're in a downtown area, it is probably VERY worthwhile to ensure you also buy a parking spot! It's also a potential source of rental income.
posted by nouvelle-personne at 6:14 PM on July 5 [1 favorite]
>Does the condo have a professional management company? If not, run away.
This isn't necessarily true - I'm on the board of a small (25 units) condo building where I live and we actually kicked our management company to the curb a couple years ago because they were a huge pain and cost a lot of money. Most of what they do is replicated by PayHOA and a bookkeeper who helps us keep our finances straight, and we probably saved $20K/year. For larger buildings however this may not be wise!
One thing to do for sure is skim the last year of meeting minutes - it will let you know how stuff gets handled, and who does the handling. They should (may be legally required to) also mention upcoming projects, maintenance issues, etc.
They may also have a reserve report done regularly that, while not necessarily accurate as far as what upcoming long-term maintenance (like furnace cleaning or whatever) will cost, does have to be accurate as far as when something was last done and how much it cost then.
posted by BlackLeotardFront at 7:51 PM on July 5
This isn't necessarily true - I'm on the board of a small (25 units) condo building where I live and we actually kicked our management company to the curb a couple years ago because they were a huge pain and cost a lot of money. Most of what they do is replicated by PayHOA and a bookkeeper who helps us keep our finances straight, and we probably saved $20K/year. For larger buildings however this may not be wise!
One thing to do for sure is skim the last year of meeting minutes - it will let you know how stuff gets handled, and who does the handling. They should (may be legally required to) also mention upcoming projects, maintenance issues, etc.
They may also have a reserve report done regularly that, while not necessarily accurate as far as what upcoming long-term maintenance (like furnace cleaning or whatever) will cost, does have to be accurate as far as when something was last done and how much it cost then.
posted by BlackLeotardFront at 7:51 PM on July 5
Find out what the reserve fund is and what portion of your payments will go into the reserve fund. It had better be really hefty, because large structural repairs need to be easily covered by those funds, either if an unexpected structural fault turns up, or if an adverse weather effect that counts as an act of God, not covered by the insurance takes the building's roof off, or blows out all the windows on one side of the building, or floods the bottom two floors with sewage water.
Regular maintenance being done is critical. And that's not cosmetic stuff. If they paint the hallways every second year but the plumbing dates from 1972 you might want to rethink buying there.
posted by Jane the Brown at 7:35 AM on July 6
Regular maintenance being done is critical. And that's not cosmetic stuff. If they paint the hallways every second year but the plumbing dates from 1972 you might want to rethink buying there.
posted by Jane the Brown at 7:35 AM on July 6
In addition to checking the reserves, also consider the number of units. In a small complex, even one owner defaulting on HOA dues can have a big impact, especially when you also figure in the legal fees incurred in trying to collect.
posted by elphaba at 7:55 AM on July 6
posted by elphaba at 7:55 AM on July 6
I guess I would say that I don’t think 500 ft.² is too small to live in! My current condo is less than 400. I find it quite comfortable for one person, especially because it includes outdoor space and the layout is really efficient. I don’t need space for an exercise bike or anything like that, and I don’t have a ton of stuff that needs storage.
That kind of thing may not work for you! But I would encourage you to consider smaller condos depending on how they are laid out and what else they offer. For example, if they offer storage space, it may be better for you than having a condo that is slightly bigger but where you have to stare your Christmas decoration boxes all year.
Depending on your needs, number of rooms can make a significant difference. There are some terrible one bedroom layouts and some great two bedroom layouts. Square footage can be used well, or they can put a bunch of square footage into the bathroom or in an awkward spot where you can’t fit furniture. The kitchen can be laid out in a way that gives you plenty of counterspace or it can have zero counterspace and be too cramped to fit two people. All of these can happen with the same amount of square footage!
Also, it might be better to have a slightly smaller two bedroom than a slightly larger one bedroom if, for example, you work from home or frequently have guests staying with you.
If it all possible, take a look at the layouts or floorplans for any condos you’re interested in and consider how you use the space rather than necessarily maxing out square footage.
This may all be superfluous advice, but in case you are filtering really hard for square footage, I wanted to make a case for being more flexible.
posted by knobknosher at 10:01 AM on July 6 [2 favorites]
That kind of thing may not work for you! But I would encourage you to consider smaller condos depending on how they are laid out and what else they offer. For example, if they offer storage space, it may be better for you than having a condo that is slightly bigger but where you have to stare your Christmas decoration boxes all year.
Depending on your needs, number of rooms can make a significant difference. There are some terrible one bedroom layouts and some great two bedroom layouts. Square footage can be used well, or they can put a bunch of square footage into the bathroom or in an awkward spot where you can’t fit furniture. The kitchen can be laid out in a way that gives you plenty of counterspace or it can have zero counterspace and be too cramped to fit two people. All of these can happen with the same amount of square footage!
Also, it might be better to have a slightly smaller two bedroom than a slightly larger one bedroom if, for example, you work from home or frequently have guests staying with you.
If it all possible, take a look at the layouts or floorplans for any condos you’re interested in and consider how you use the space rather than necessarily maxing out square footage.
This may all be superfluous advice, but in case you are filtering really hard for square footage, I wanted to make a case for being more flexible.
posted by knobknosher at 10:01 AM on July 6 [2 favorites]
Don't just check the reserves, although absolutely do that. Check that there is a plan in place for those reserves - make sure that a reserve study has been done recently (those will usually be done every few years), and that the reserve study calls out what major projects will need to be done in the next several years (roofing, HVAC replacement, window replacement, etc), and what portion of the reserves is allocated for those projects.
That ensures that there will not only be sufficient reserves to cover those projects, but that sufficient planning is in place to help cover any unplanned emergencies/contingencies that happen in addition to those scheduled projects, while preserving the funding for those planned projects.
posted by pdb at 10:57 AM on July 6
That ensures that there will not only be sufficient reserves to cover those projects, but that sufficient planning is in place to help cover any unplanned emergencies/contingencies that happen in addition to those scheduled projects, while preserving the funding for those planned projects.
posted by pdb at 10:57 AM on July 6
Even "modest" condo or house purchases: Mortgage interest rate increases can cost hundreds-to-more-than-a-thousand dollars more per month,......or tens to hundreds of thousands of dollars more over the length of the loan.
IMHO: Variable or flexible rate mortgages are deathtraps if you do not have capital or the most stable job in the world. Historically, you could refinance down a fixed rate when rates drop, but if rates swing up and those new rates apply to you....OY.
Do the math and get as good-as-possible-within-other variables loan rate.
posted by lalochezia at 7:27 AM on July 7 [1 favorite]
IMHO: Variable or flexible rate mortgages are deathtraps if you do not have capital or the most stable job in the world. Historically, you could refinance down a fixed rate when rates drop, but if rates swing up and those new rates apply to you....OY.
Do the math and get as good-as-possible-within-other variables loan rate.
posted by lalochezia at 7:27 AM on July 7 [1 favorite]
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Be aware of what kind of parking and storage a unit comes with. You can often rent out the parking if you don't need it, but you can't necessarily find rental parking if you do need it.
Read the condo rules before you make an offer. Are you allowed to have pets? Guests? BBQs? Do laundry when you want? Can you rent the unit out? Is there an overall restriction on how many units in the building can be rented? There are some stupidly restrictive condo rules out there and they are very, very, very, very hard to change.
posted by jacquilynne at 9:30 AM on July 5 [5 favorites]