Whether you want to buy your first home or just want to leave the burden of having a home behind you, condos can be a great way to have a low maintenance home. However, there are some trade-offs related to owning a condominium, so before you leap, ask these five questions.
Is the building insured? One of the most important things to know is whether your condominium insurance coverage is adequate. If you are looking for upper west side luxury condominium, then you can ask a realtor to help or you could browse various sources online.
Inadequate coverage can cause serious financial burdens in the future or may even make it impossible to get financing. Make sure the board has maintained adequate coverage on the building and verified the amount of coverage through your insurance agent.
How many investors are there? If you plan to finance your purchase, your bank might find the building an unsecured investment because of the number of investors and refuse your loan.
If there are too many investors, this will make it harder to find a bank that is willing to offer a mortgage, which can have an impact on the resale value of your home. As a good rule of thumb, make sure investors own less than 30 percent of the building.
Does it fit your lifestyle? Condos are a great way to own a home without having to deal personally with maintenance costs because this is usually included in your monthly fees and is cared for by professionals.