How to buy a condo?

[sdplusbeauty]

Hello all..
I admit that I am a bit lost when it comes to personal finances, and home owning. Can you guys give me some advice on what it takes to own a condo, and where I start? There is a place I have my eye on and it's not that expensive. (For San Diego anyways).. $187k
What do you think??

 

[Freakshow]

Uh...need a LOT more info...

How much are you/ can you put down? What are the comporable sales in the area? What's the square footage? What's your credit like? How much are the HOA dues?

 

[builder]

MOST IMPORTANT!!!!!

Be wary of low prices. Condo construction plays a HUGE part of whether or not you will be happy with it. Talk to the neighbors. Ask about noise. Then talk to the developer if possible. Ask about noise. Then talk to the BBB. See if the developer has any complaints. Look up the area on the Real Estate system. San Diego has to have one. Talk to the neighbors again and ASK ABOUT NOISE. Also find out about HOA dues and fees and have there been any outrageous assessments. You need to ask the treasurer or President if the reserve funds are there to cover large repairs. You don't want to pay $100/mo only to find out there's a $500 assessment each year because the dues don't cover the expenses. Find out what you can and can't do to your condo. Many only allow paint and flooring changes with nothing being changed on the exterior. HOAs are both really good and really bad. There is rarely an inbetween with condos. And ask the HOA staff if there have been any issues with noise.

If there are ammenities (pool, workout room, etc) how much of this is being paid by the HOA dues? Is there a yearly fee? People forget about all the hidden costs of condos. Power? Gas? water? Trash? what is paid by the HOA and what is paid by the homeowner?

 

[builder]

One more thing, legally, is it a condo or a townhouse? Real estate terms aside, a condo is a unit that you own from the paint of one wall to the paint of the opposite wall. A townhouse is something you own all the way down the the dirt. That makes a huge difference in taxes, insurance, etc. All which affects your costs later.

http://www.ourfamilyplace.com/homebuyer/condo.html

 

[Big Mark]

I'm always too embarrased to buy them at the counter, so I either shoplift them or go into the bathroom and put 3 quarters together.

 

[meatpile]

Depending on what rent is like, and what your tax situation is like, I might discourage 'ownership' at all.

 

[THE GUTTER]

I'm headed in the condo over house direction. Prices here area so wild it would be a good rental investment for the future anyways. I got my eye on an older unit in a perfect neighborhood and closer to work and in town. I hate mowing the fuckering lawn too.

 

[cockstrap]

Depending on what rent is like, and what your tax situation is like, I might discourage 'ownership' at all.

Very good suggestion. Condos are much harder to sell than homes. I got lucky. Of the 8 units that have gone on the market out of 23 in my development over the past 3 years, only 3 have sold.

All three were gay owned, not that it makes a difference, but it does speak loudly (shhhhh! the neighbors can hear) about the difference a nice interior makes when it comes time to sell.

If you do consider buying, check the area to see how other condos have sold. How many have gone on the market to only come back off with no offers.

 

[Freakshow]

Depending on what rent is like, and what your tax situation is like, I might discourage 'ownership' at all.

Agreed. If you aren't putting anything down...and aren't in a high bracket you will most likely pay MORE out of pocket each month than if you rent.

 

[cockstrap]

Agreed. If you aren't putting anything down...and aren't in a high bracket you will most likely pay MORE out of pocket each month than if you rent.

And to make a profit, you have to either remodel the unit inside or hope that property values escalate. Condos don't have a great track record for making money unless it's a pre-construction flip.