When buying a condo, the price is the first issue it can be sometimes as expensive as some luxury homes Las Vegas. Aside from that, there are other important factors that need to be looked at seriously. Here are some tips to consider before purchasing a condo unit.
- Location, location, location
The location can spell either a boom or a doom of your investment. If the condo building is located in an area that is far from the commercial or business districts, its value can depreciate over time. On the other hand, if the condo is easily accessible and near other important establishments, its value can appreciate in no time.
- Check the reputation of the developer
It is very frustrating to invest in a condo unit on pre-selling stage only to find out that the developer abandoned its responsibility of completing it. If the condo is ready for occupancy, you still need to check the track record of the developer. Look at their other projects to determine whether the developer is a trusted company.
If you think that a few square meters for your condo unit is already expensive, wait until you find out how much a parking lot costs. In Manhattan area, an in-building garage costs about $136,000 on average. This figure can go up in luxury condo buildings. The rule whether to get a parking space or not is if you need it and you can afford one, get it. Parking space can appreciate in value same as the condo unit. If you will no longer need it, you can have it leased which means it can also be a source of income.
If the parking cost too much and you will not use it every time, renting a parking area can be a better idea.
The price of the condo unit also depends on the amenities that you can use. A typical condo building has a swimming pool, children’s playground, a gym, and a clubhouse. Determine whether the amenities help justify the price that you are going to pay for the condo unit.
- Association Dues
Aside from your personal utility bills, many condo managements usually ask association dues from their tenants. This monthly contribution is being shared by all tenants of the building to cover the payment for electricity and water in common areas such as the lobby and the pool. It is also being used for a salary of maintenance and cleaning workforce. Determine how much you need to set aside for your association dues.