When buying Preconstruction Condos for Sale Real Estate Ownership or Simple Fee condo, we are all seduced by the decor, ambiance, view, and other visual effects, when we really should be seeing more than just visual!
The Home Owners Association (HOA) often plays a very nondescript role in the entire Preconstruction Condos for Sale Real Estate Ownership or Simple Fee condo selection process, especially for first-time condo buyers. However, the HOA can play a huge role in the use of your finances if you find yourself in an unfortunate situation after moving.
To avoid a surprise, ask a few pertinent questions about the Homeowner’s Association. One of the important factors would be “who runs the show?” During a very Preconstruction Condos for Sale Real Estate Ownership or Simple Feecomplex, residents will travel it, but a knowledge management company is preferable, especially during a condo of any size.
Professional management companies charge for their services, but can often save this fee by getting lower quotes for repairs because they will use the same company many times. There is also less chance that the company will use its influence on the votes of neighbors, so they can be interpreted as more fair. Ultimately, it is business for them, and the HOA will function as such, rather than as a part-time rush before each meeting’s deadline.
Always ask to see the HOA rules, financial report, bylaws, and minutes of recent meetings. Conditions, Covenants, and Restrictions (CC & Rs) will affect your lifestyle, so make sure they “fit” with it.
The financial report will tell you if big rate increases are coming or if there are “emergency” fees that are due soon. This raises the important question: what will happen if there is a major emergency?
How is it paid and the way much money is inside the HOA kitty?
Maintenance reserves are going to be important; It is expected that there will third of the gross annual fees charged to all or some of the residents of the reserves. A favorable minimum amount would be $ 4,000 per condo, although it is manageable.
Another aspect that the HOA manages is the percentage of rental units allowed. Less than 20% is acceptable, but more and reselling the condos becomes risky. Tenants often do not have the same respect for property or neighbors, reducing desirability. Also, mortgage companies are aware of this and are reluctant to mortgage high-rent complexes.
Once you have resolved all of these questions, you can consider whether you want a professional inspection. These inspections include the common areas as well as the condominium that interests you. Once all these precautions have been taken. You will feel more confident to go ahead and bid.