People enter the condo real estate buying market for different reasons: Some people are simply downsizing because their young offspring have left the coop, others are strictly purchasing as a financial investment, and some are buying to rent. It does not really matter, in all cases of buying a condo, seven factors should be borne in mind.
Human nature likes buying on impulse, and later regret that they had not properly done their homework. A condo buyer may succumb to difficulties by rushing in to buy a unit as they fell for the allure of condo living.
The right time to buy firstly depends on on the fact that no more than one third of your income goes on the repayments. Pay close attention to market information and the stability of interest rates. Look at the surplus of real estate in the area you are buying, and the state of the overall economy. Reports of this kind of information is easily found on the internet.
If you come across a unit that is selling at a rock bottom price, but with an unusually high maintenance fee, think twice about the deal. Some troubled developments have to off load their units for a song, and then try and recoup the revenue in other ways. You might find yourself immersed in a financially troubled complex that is basically impossible to resell.
Check the market and that the asking price truly reflects this, and whilst doing so check that the maintenance costs are the same as the building around. If you start with a realistic low offer, then you can always go up. Try not to get involved in any bidding wars, walk away from the deal if this is the case.
The more money you put down, the lower the mortgage and it’s monthly payments. And thus the greater the chance to refinance at a later date. Small down payments are not good if you can afford more, you will suffer down the line in more interest paid on a larger sum over a longer time. Small down payments are false investments and will cost you a lot more in the long run.
Too many renters are a bad sign in a condo complex. Because too many units may be available on the market, the condo complex developers may try to offset this with rentals. The problem with this is that renters have no real personal stake in the development and therefore are reluctant to be amiable to the upkeep and upgrades to the building complex. Renters are also far more likely to break condo house rules regarding noise and the upkeep of communal amenities. This ends with an overall degradation of the complex and reduce unit resale values.
Before buying always take the local area into detailed consideration. Find out if there are railway tracks nearby, or major power lines. Check the crime rate, and the night time activity around the condo complex. Is the area in general improving or regressing, are there any more developments shooting up close by. These seven Golden Rules are a good guide when you are entering the condo market. Also purchase from recognised developers that have a good record at building exciting projects. The Global Top Group have a team of experts that will be happy to discuss any of these Golden Rules and any other questions you may have.