Condo is a great option for living an affordable and convenient way of lifestyle.
If you are in the market for a condo, consider many things before making your final decision. With so many condos across the city and suburbs, it can be hard to know which one is right for you.
Condos are quite more affordable than single-family homes, but they also have some downsides. Therefore, it’s important to know what you’re getting into to make an informed purchase. If you’ve been considering buying a condo as an investment property or as your first home purchase in real estate Port Aransas, there are some things that you need to think about before taking the leap.
8 Essential factors to consider before buying a condo
Here are eight things you need to know before buying a condo
- You will be active member of a community
- You must pay HOA dues
- Make sure the secure fund is enough
- A thorough look at the condo community budget
- Find out the master insurance deductible
- Review the condo board minutes
- Make sure the condo is warrantable
- Know the investor-owned ratio
1. You will be active member of a community
One of the great things about condos is that you are joining a community. It can be a great way to make friends and have people nearby to help out in emergencies. However, it’s essential to know the condo rules before you buy and be sure that you are comfortable following them.
You will be responsible for keeping your unit clean, getting permission before making changes to the interior, and following community rules.
2. You must pay HOA dues
When you purchase a condo, you need to pay monthly HOA dues. This covers the cost of maintaining the common areas and amenities in the complex. Be sure to ask realtors in Port Aransas, Tx, how much the dues are and what they cover so that you can budget for them properly. If you stop paying the dues, you could be subject to foreclosure.
3. Make sure the secure fund is enough
One of the things that HOAs are responsible for is maintaining a reserve fund. This is money set aside to cover big repairs or replacements that may come up in the future. Be sure to ask how much is in the reserve fund and how often it is replenished.
If there isn’t enough in the reserve account or if it’s not being refilled regularly, that could be a sign that condo fees might eventually increase. On the other hand, if it’s not enough, you may be on the hook for repairs yourself.
4. A thorough look at the condo community budget
Condo buying is an excellent investment, so it’s important to take a look at the community budget when you are considering a condo. This will give you a perfect idea of how much the HOA is spending on things like landscaping, water, and trash removal.
If you don’t like the way the money is being spent or think that the complex could be saving money in other areas, you may want to look elsewhere. Also, be sure to ask how much of the budget is allocated for reserves.
5. Find out the master insurance deductible
Condos are responsible for the maintenance of common areas of the complex. In order to pay for this, condos will usually take out an insurance policy that covers major repairs. Unfortunately, this policy also has a deductible, which is the amount that you are responsible for if anything goes wrong. You should be conscious of this before you buy so that you aren’t surprised by a large bill after the fact. The HOA usually pays this deductible, but you will want to confirm that.
6. Review the condo board minutes
Condos have boards just like other associations. These condo boards are responsible for making decisions on behalf of all owners in the complex. It is essential to review their minutes because these can be very revealing.
You should pay close attention to items that are discussed regularly and any upcoming projects that the HOA plans on undertaking. Politics or personal vendettas can sometimes sway condo boards, so it’s important to know what is going on. With the minutes, you will have a better idea of whether or not you want to buy into the community.
7. Make sure the condo is warrantable
Before you buy condos for sale in Port Aransas, you should ensure that your prospective condo complex will pass inspection by a third party. This is an inspection that will ensure that the condo complex and individual units meet specific standards, like having proper wiring and insulation. If your module does not pass inspection, you may be able to get a discount on your purchase price or ask the HOA for repairs before moving in.
8. Know the investor-owned ratio
The investor-owned ratio is another term for the maximum number of owners that can live in a condo at any one time. It may seem like it’s not an important issue, but if you end up purchasing a condo, it can be beneficial to work out some sort of agreement with your neighbors. A good investor-owned ratio means you’ll have less noise and more privacy.
In a nutshell
There are several things to look ahead to when it comes to owning a condo at Port Aransas real estate property. If you buy into a well-run complex, you’ll likely have lower condo fees, a well-maintained complex, and no worries about repairs. First, however, it’s essential to look at the condo’s history and see if they’ve been working to improve their complex. If it seems like the HOA has only been neglecting their duties, it might be best to look elsewhere.
Now that you recognize what to look for, buying a condo can be a breeze. Just ensure that you are aware of all the things that come with living in a complex, and be sure to ask any questions you may have.