Condo living discussion thread - PeachParts Mercedes-Benz Forum

123c · #1 12-06-2007, 11:26 AM

I've made the decision that Condo living is for me, so I am planning to buy a Condo sometime in the near future once housing prices drop down to where they should be, and I have enough money for a decent down payment and enough for some minor improvements.
Now what I am toying with is, do I get a Studio unit, or a One Bedroom unit. I can save loads of money with a Studio unit, and I can do lots of cool stuff, but with a One Bedroom I get a little more privacy. A Studio unit will also cost me less to remodel. Also, if I go with a Studio unit, I will be more than likely be able to afford something that will be within walking distance of things.
What my remodel job will consist of will be determined by that the unit I buy, and what it is in need of, but It will get a clean, sleek modern make over on a budget.
Anyone have any input on this?

Dee8go · #2 12-06-2007, 11:28 AM

Don't forget to figure in the condo fee. They are pretty significant as a per centage of your mortgage payment sometimes, depending upon what they include.

123c · #3 12-06-2007, 11:33 AM

Yes, I know all about those, I think for the kinds of units I will be looking at, they run around $100-$150 a month...

#4 12-06-2007, 12:29 PM

That is a VERY low condo fee! Make sure that there's a healthy reserve fund in the event of major common area repairs (roof, foundation, pool, etc.) Another tip is to see if there is a cap on the % of non-owner-occupied (renters) in the complex. You don't want to live in a condo where the majority of residents are renters.

A one BR will be far easier to sell years down the road than a studio.

Hatterasguy · #5 12-06-2007, 12:33 PM

Condo's are great if you like the life style. Very little work needs to be done by you, however you cannot work on your cars in the parking lots.

Two bedrooms with garage's tend to be worth much more than singles.

I'd grab a foreclosure. The hammer just came down last week on a nice one bedroom in the center of town for $185k. Those units usualy go for about $225kish. So nice equity right their.

Commen fee's can get expensive, also make sure that no big repairs are coming up, and budget for them. One of the nicer condo units around here, actualy my favorite is Oyster Landing. Last year for a new roof, siding, paving, and landscaping each unit got hit for between $30k-$70k. These are $550k-$750k condo's but still thats a lot.

So heads up on that!

123c · #6 12-06-2007, 01:16 PM

If I had $400K, I know the exact condo unit I would be living in. Brand new, top floor, and great views. Built with the Modern Style I like, it's a small unit, but something I like. I even know the Architects/Builders, and they live/work in the building.

Mistress · #7 12-06-2007, 01:25 PM

I live in a condum and for financial reasons bought a studio. Several benefits come from having a small place:

1. It keeps the shoe monster at bay due to lack of closet space.
2. Condo fees are manageble and when "special assesments" come they are small as well.
3. Remodeling is financially doable.
4. It's a good place to start for a first time home buyer, however but, Hattie and Howitzer might give better advice on purchasing and re-selling of condos.

Jim B. · #8 12-06-2007, 01:36 PM

INSIST on a copy of the CCR's and a copy of the Condo owner's association financial data and reserves in its latest report. Get copies of the Board minutes and look for present and future "special assessments" that exist or are planned. Ask for a copy of the Association's "umbrella" liability policy.

Read all of this stuff carefully. VERY carefully. There can be traps for the unwary

dynalow · #9 12-06-2007, 01:37 PM

Quote:

Originally Posted by mrhills0146

That is a VERY low condo fee! Make sure that there's a healthy reserve fund in the event of major common area repairs (roof, foundation, pool, etc.) Another tip is to see if there is a cap on the % of non-owner-occupied (renters) in the complex. You don't want to live in a condo where the majority of residents are renters.

A one BR will be far easier to sell years down the road than a studio.

AMEN!

Many HO Assn's keep fees low and hence provide little funding for the inevitable repair & replacement. You, iow, end up paying for the depreciation of the roof that the seller got away with underpaying because of a too low reserve.

I've seen a lot of condo budgets around here, where the developer (to aid marketing) under-estimated the replacement costs and stretched the lives to keep the fees as low as possible. And the HO's naturally want to pay as little as possible.

R&R assessments ought to be viewed as user charges: Your'e living under that CA roof, you pay for it through a reasonable reserve, based upon conservative projections of replacement costs.

I suggest you ask to review the AUDITED financial statements of the Assn. Auditing standards require certain disclosure regarding engineering studies and replacement costs OR disclosure that management has not performed the study!. If you can't find view the audit, or if they don't have one performed, be sure to ask about the reserve and the basis on which reserve assessments are made (i.e. engineering studies).

In my state, the Dept. of Consumer Affairs regulates initial public offerings of condominiums. After that, ther's not too much reporting that goes to the state. The HOA should be filing tax returns with the IRS, but that is only a partial picture, at best.

I agree with the 1br ease of sale comment too.

Jim B. · #10 12-06-2007, 01:46 PM

Find out what the property taxes and homeowner's insurance are on the unit you are contemplating.

TheDon · #11 12-06-2007, 01:59 PM

reminds me of a mitch hedberg joke

"I went to the Home Depot, Which was unnecessary.I need to go to the Apartment Depot.Which is like a big warehouse with a whole bunch of people standing around saying "we don't have to fix chit" "

good times

Mistress · #12 12-06-2007, 02:00 PM

Have a home inspection done as well, evn though people will say "Oh its a condo you don't have too because the HOA have standards."

raymr · #13 12-06-2007, 02:13 PM

If I went that way, I'd look for solid brick/masonry construction and thick walls. An elevator would be nice if its more than 2 floors up.

I had a beach condo once with none of those features. Then the special assessment came up because they couldn't find a new insurer for the building. They ended up with LLoyd's and a $1300 additional assessment per unit.

dynalow · #14 12-06-2007, 02:24 PM

Quote:

Originally Posted by raymr

If I went that way, I'd look for solid brick/masonry construction and thick walls. An elevator would be nice if its more than 2 floors up.

I had a beach condo once with none of those features. Then the special assessment came up because they couldn't find a new insurer for the building. They ended up with LLoyd's and a $1300 additional assessment per unit.

Was that recently? Most insurers have pulled back from the coastal towns to reduce hurricane and storm payouts. Here in NJ, insurance for residential real estate "East of the Parkway" that is NOT a principal residence has gone thru the roof in recent years. The family's vacation place was dropped by a smaller carrier ($400/yr) and after shopping all we could get was coverage by Atlantic States, underwritten by Lloyds. (at 2,500/yr.)

Mistress · #15 12-06-2007, 02:38 PM

Quote:

Originally Posted by raymr

If I went that way, I'd look for solid brick/masonry construction and thick walls. An elevator would be nice if its more than 2 floors up.

I had a beach condo once with none of those features. Then the special assessment came up because they couldn't find a new insurer for the building. They ended up with LLoyd's and a $1300 additional assessment per unit.

My building is like that, concrete and brick with 3 elevators one of them for freight and drunks.