When you consider buying a condo, many folks are seduced by the decor, the ambiance, the views and the amenities.
What we should be checking is something that may not come to mind right away! The Home Owners Association (HOA), aka Condo Owners Assoc.
(COA) normally plays a nondescript part of the picture when you're choosing a new condominium - especially for first-time condominium buyers.
On the other hand, the HOA can certainly play an extremely large element in depleting your finances in case you hit unlucky circumstances after moving in.
In order in avoiding a surprise, ask one or two pertinent questions concerning the HOA.
Among the list of important factors will be 'who is on the HOA Board? ' In an exceedingly small residence complex it could be run by simply residents, but a reliable management organization is more suitable, especially for a medium to large condo complex.
Professional HOA management companies charge the HOA for their services, but they will often save this charge by having lower quotations for repairs, because they send a large volume of business to a repair company and thus get discounts.
There can also be less chance of the firm using its influence on resident voting ballots.
Finally, this is the full time business for these management companies and the HOA is going to be run professionally as such, instead of being part-time member run, with a mad scramble before each meeting to be prepared by members.
Always ask to see the rules from the HOA, this financial record, the by-laws as well as the minutes on the last several meetings.
That conditions, covenants in addition to restrictions (CC&Rs) could affect a person's lifestyle, so be certain fits what you are looking for.
The fiscal report will inform you if you can find any massive increases inside the fees springing up, or if you will discover any 'emergency' charges due before long.
This raises the important question, what will happen if you experience a significant emergency? How is it paid and what quantity of money is in the Home Owners Association kitty? The preservation reserves will probably be important; to be ready, they should be approximately 1 / 3rd of the actual gross twelve-monthly fees charged to all or any residents within the reserves.
Another aspect the fact that HOA manages is the percentage regarding rental products allowable.
Within 25% is OK, but any more and the actual re-sale with the condos becomes risky.
Renters often don't have the similar respect pertaining to property or even neighbors, so that they decrease desirability of the units.
Also home loan companies and the FHA know about this and they are reluctant to give out mortgages to high rental complexes.
Once you have ironed out each one of these questions, you may consider whether you desire to get a home inspection performed.
These inspections should check the mechanical viability of the furnace, A/C and overall condition of the unit and grounds.
Once these precautions will be in place, you may feel safer to just do it - make an offer.