Sherzer Insurance Blog
Purchasing a condominium comes with multiple benefits. It is a great investment choice and also a way to earn passively. Even though buying a condo is a smart choice, there are certain factors to put into consideration before signing the final contract. Here are some significant factors to look into before sealing the deal on that condo:
Market Value Over Time
Due to the low price of the condominium, some buyers are easily convinced that they are getting a good deal, which is not always the case. As a potential buyer, due diligence should be carried out to know the overall market value of the property over time.
Typical questions that should be asked is if the property will appreciate over time and if the reduced price includes association dues and maintenance. You should also find out if the general structure is strong enough to withstand natural disasters such as earthquakes. After answering these questions, the results might make you reconsider investing in that condo unit.
In some cases, the condo consists of impressive architectural designs and amenities such as a clubhouse or a pool, which tend to attract many individuals. While all these might seem enticing, the first thing a buyer should put into consideration before buying a condo is the density. Density is the overall number of condo units per floor, in each building based on how the building developer designed it
The more units occupied in the condo, which means common areas such as elevators and pools, will be frequently used. Due to this fact, the rate of wear and tear will be increased, which will most likely increase the cost of maintenance.
Condo Fees And Dues
Every condominium has standard association fees. These fees help pay for the maintenance of the facilities in the building. Before finalizing payment on that condo unit, you should be aware of the dues paid monthly and if the price is worth it.
The breakdown of the condo dues usually covers security, taxes, licenses, repairs, maintenance, and wages of the employees in the building. Condo dues are calculated based on the size of the unit, meaning the more significant your property, the more the association dues will be.
Any failure to meet up with association dues can incur interests over time, usually within 3% - 4%. It is best to be aware of interest rates that will be charged over specific periods. In cases where there are regular defaults in payments, it can lead to your basic amenities being cut off or restrictions from using shared facilities.
At Sherzer Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (239) 673-9301. You can also request a free quote by CLICKING HERE.