All About Condos

Condominium association has insurance but only covers the building, and does not include your possessions or accidents occurring in your condo. Buying insurance for a condo will protect you and your investment.

Determine what is covered by their insurance and what you are accountable for. Insure those areas to cover potential repairs or replacement. List the contents of your condo including personal belongings and appliances. Estimate total cost to replace the items. Purchase liability insurance. Condominium policies do not cover your condo or events that take place inside them. You may be held liable for injuries sustained in your condo or damage done to the building.

As in buying a house, there are also risks involved when buying a condo, and these are questions to consider for a better chance of a good buy:

• Is the condo association professionally managed?
• Is the monthly fee comparable with nearby similar condo complexes?
• Has the condo unit been professionally inspected and did the seller provide a defect disclosure report?
• Ask residents, “What do you like best and least living here?”
• What is the financial condition of the condo association?
• Have there been any special assessments in the last three years?
• Are there any disputes among owners that the Association is trying to resolve?

Are you willing to share?One important detail about condo living is that you will have to share the building’s amenities with your fellow tenants. While this is no different from bumping into neighbors in a village clubhouse, some people prefer lounging by the pool in their own lawn.If you’re one of those who are particular about their private space, single home ownership might be what you need. In a home all your own, you’re your own total boss. You don’t need to abide by the building rules or worry about disturbing your next door tenants who are just on the other side of the wall.But if you think you’re cut out for condo living, by all means go for it!

Depending on one’s viewpoint, here are some points to consider:

• Payment of Condominium Association fees which are not tax deductible.
• Paying for amenities that you may not use.
• Unexpected increases in monthly fees and for maintenance costs.
• They have a set of rules that can include restrictions on noise levels, outdoor barbeques, pet ownership, renovations and even the interior décor of your unit.
• Poor soundproofing
• Parking is often in a common area not attached to the home.
• Condominiums are more affected by trends in the real estate market. If the market falls, usually condos are the first to suffer, the last to recover.

Before buying a condominium, it pays to get to know your neighbors, especially the home owners association (HOA). First of all, find out how much their building dues are and how many times it has gone up in the past five years or so. Ask to see a copy of their building regulations. Some HOAs are very basic and only enforce restrictions on how many people can live in a unit and other safety and security measures, while some even control what sort of Christmas decorations you can put up.

Ask how large the HOA’s reserve funds (used to pay for maintenance and emergency repairs on the building) are. The larger the reserve, the less a chance of an assessment or one-time payment to chip in for an unexpected expense. The smaller the reserve, the greater the chance you’ll be billed for a building repair in the near future. Some states require periodic updates of reserves to be published to HOA members.

Condos present an alternative lifestyle for individuals who prefer to be independent and own a place that is affordable and more convenient than buying a house. This idea appeals mostly to single young professionals as well as small families. Condo units offer amenities like guarded parking space, 24 hour security, and swimming pool.

Condominium owners hold rights over their respective units but share responsibility over operating costs and maintenance of the shared spaces of the property - lobbies, hallways, elevators - that are essential to a condominium complex. Each complex is a community, each owner accepts and follows the standard rules and regulations of condo living.

Learning the ropes of condo buying

If you�re highly interested in becoming a proud owner of a condominium, it would be important to know the basic details involved in the process of making your big purchase.

Invite a condo-living friend out for coffee and ask for tips on how they found their place and how they were eventually able to clinch the deal. Seek the help of a professional by reading articles by realtors, scheduling meetings with agents, and looking up books on the subject.

One good read would be the step-by-step process shared by Condo.com on their website. There you can find the chronological list of the many things you would have to take into consideration before, during, and after you�ve purchased your very own condo unit.

[http://www.condo.com/Learn/Buyers.aspx?PAGE_ID=61]