Tips and Advice- Buying A Condo

Slo

Alrighty, the deal is that im in the market for a place to live, and a condo is what I can afford (230k is my limit).

I live in B.C. Canada, and want to ask the lot of you with experience to share.

Financial, mortage, real estate agents, federal/provincial kickbacks/fees I might not be aware of.

I've done some homework but I know nothing beats having someone whose been through the ropes tell me like it is.

Any random tips when shopping, what to look for, what to avoid.

Anyways, thanks for your time!

3lwap0

Something to be aware of with Condo's: Condo fee's. Your mortage is one thing, but condo fees can tack on a couple of hundred bucks a month to whatever you're paying, and that may stretch you financially. The fee's usually cover a bunch of things, like garbage removal, snow service, etc.,

Jobastion

Also, be aware that the condo fees are based on the assumption that EVERYONE is paying them. Make sure that where ever you pick has both a currently high occupancy rate, and that the residents are paying the condo fees. If a block of residents are freeloading, the fees will go higher, and bad things happen when that starts to spiral out of control.

For example, if the building has only one water meter (as some condo's do), then the fees pay for water for everyone. And if they aren't being paid by everyone... well, when the water company shuts off the condo's tap, it doesn't matter whether you paid or not. You don't have water. [This is rare, but it has happened]

Pitseleh

Always buy from a realtor, don't go directly through the developer. You get a better deal that way, realtors collect a commision from you working through them, they will negotiate down for you -- developers won't.

BlochWave

I've heard bad stories about condo fees, specifically maintenance fees (which may just be renamed generic condo fees, I dunno). Another hundred or two bucks a month (so like 1200 to 2400 extra dollars a year) on top of the mortgage(I guess you can call it that for a condo?) is annoying, but probably pretty standard. The danger there is that they probably can't adjust your actual mortgage of course, but they can jack those fees up willy nilly if you're not careful. Of course that type of thing is pretty shady so look for places that aren't shady, just like when looking for apartments. Maybe knock on one of your potential neighbor's doors and see what they think.

rts

Yeah, HOAs have monthly fees, and can also put assessments out for major repairs as needed (like a new roof). You might want to check to make sure there are no major assessments coming up in the near future so you don't get stuck paying some huge bill which might be the reason the person wanted to get out of the condo in the first place. I know here in California they are legally required to disclose that information to you before the sale but I am not sure about anywhere else.

Another thing, is maybe meet the neighbors before seriously considering it. You are going to be sharing walls with these people, and maybe even a ceiling/floor. If they have dogs you might want to consider how annoying that dog may be. Or cats for that matter, outdoor cats annoy the hell out of me at my place. You will probably find out the pet policy early on when looking, but it's good to double check if you have, or plan on having a pet in the near future. Think about the walls too, how soundproof are they? It can be annoying listening to your neighbors going at it or some guy talking on the phone next door. Or the reverse, having them complain about the noise you are making.

Something that I wasn't thinking about when I bought my place was property taxes. Getting hit for an extra $4k every year is kind of rough.

I got stuck between 3 board members as well. Out of 118 units, there are like 6 board members, and 3 of them live right next door to me. It makes it hard to even bend the rules.

How far is your parking space or garage from your door? Is it up many stairs? It may not seem like a big deal at first to have a little trek, but it can really be a problem when you are in a hurry or have a lot of groceries to unload.

Anyways, if I think of more I will post them.

rts

Oh right, a couple more.

How close are you to the laundry facilities if you have them? Or the trash? Laundry is good to be far enough away that you don't hear them, but close enough that it isn't a horrible pain in the ass to do your laundry. And trash, you just want to be really far away so you don't have to smell it, or listen to the trash trucks. Also people will be dumping trash at all hours, so that can be pretty noisy.

an_alt

Talk to a mortgage broker instead of your bank as the broker will look at several different sources to try to get you the best rate.

When it comes to condo fees, keep in mind that when buying a new condo the developer will put a lower figure on them which will rise in the next few years. If buying a used condo, they will most likely have gone through that already so the fees will already be higher. Also, consider what the fees include - is it just insurance and maintenance or does it cover other things that you'd normally pay out of pocket.

When you get insurance, make sure you get a comprehensive policy and one that has Loss Assessment (Property) of 250% of your contents coverage. That's the coverage that will save you from a leaky condo or similar situation.

Also, there are lots of guides online for what to buy when looking for a new home or condo. The tips we remember are good, but a long detailed checklist is probably better.

onceling

If you don't have a realtor at all, I'd recommend one that I have used several times. The couple's name is Linda and Randy Book.

http://www.sutton.com/realtor/rbook

They also have access to some great people to help with mortgage brokerage. I'm not affliliated with them (lol!) but they helped me buy twice and sell once.