The money you place in condo investing is not a small amount. Sometimes, you even need to get a mortgage for one of your condo investments. This is why you need to be extremely careful on where, when, and to whom you invest your money. Committing mistakes is never an option; unless, you’ve allocated a huge amount for your investments.
To help ensure you will not make any condo investing mistakes, here are some basic tips from professionals.
1. Be aware of the exact area that you are buying
One of the important aspects of condo investing that is different from other forms of real estate investing is the space that you are buying. In a traditional house, you know at first sight everything that will come with the sale – the yard, the lawn, some furniture, etc.
With a condo unit, you know that you will buy the unit and everything that is found inside of it. But did you also know that you are also buying a shared interest in the land, the building, and the common areas? You will become part owners of these spaces and facilities and so are expected to take care of them and pay for their maintenance fees.
2. Get to know the condo building association
Whenever investing on a condo, you will need to evaluate the condo building association. Request a copy of their yearly budget and minutes of the meetings to assess whether or not it will be wise and profitable for you to invest money on them.
When analyzing the budget, make sure there is enough money coming in from monthly maintenance fees paid by all tenants to cover regular monthly expenses such as garbage collection and salaries of the maintenance crew. Also, make sure the association has a reserve fund for emergency repairs on the building.
3. Always make time to read the master deed and declaration of covenants, conditions, and restrictions
These are extremely important documents regarding your condo purchase. They specifically detail what you can and cannot do with the entire unit, which will become legally yours after you completed the payment, and with the common areas and other facilities of the condo building, which you share with other condo unit owners in the building.
4. Ask about the insurance
Condo buildings have insurance, which is included in the fees that you will pay when making a purchase. Don’t forget to clarify with your agent and with a representative of the condo building association which areas are covered and covered by the insurance. This will be helpful when you are considering getting your own insurance for the condo unit that you will purchase.
Call Jerry Pinkas Real Estate Experts now for additional tips in condo investing.
The Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
Your condo investing professionals!