Sensible Guide in Getting Your First Condo

Buying a condo, which is short for condominium, is not the same as buying a single-family home.  There are different considerations that need to be taken into account prior to purchasing!  In many real estate markets, purchasing a condo can come at a much lower price than purchasing a single family residence. Here’s are great tips to consider in buying your very first condo…

Determine Whether a Condo is the “Right Fit”

Consider in buying a condo if it fits your needs and expectations. It must have a close proximity to your desired neighbors and establishments. If you need freedom and independence, having your first condo is recommended. If you are too busy with your work and someone who wants minimal maintenance, a condo is easy to manage with maintenance service and cost.

Connect with a Real Estate Agent Who Has Experience Selling Condos

If you’re looking to make things easy for you selling a condo is much different than selling a single family, multi family, or vacant land!  The purchase contract for a condo is not the same as it is for other types of residences.  There are different contingencies than the common contingencies that are in a residential purchase and sale contract.One main difference when purchasing a condo is that most communities will require a contract to be signed in addition to the typical sales contract prior to closing.  The contract that a community will make you sign usually will state that you understand and agree to the association rules and regulations.Due to these differences, it’s important you work with a real estate agent who has experience selling condos!  A real estate agent who has experience selling condos, will know how to guide you through the process and ensure important documents are not overlooked.

Obtain Financing

Financing of a condo is not the same as a single family residence.  Just like purchasing a single family home it’s critical to get pre-approved prior to looking at condos as well as determining whether it is the “right fit.”  Obtaining financing can be tricky when it comes to purchasing a condo, as many lenders and loan products do not allow condo purchases.

Condos are very often purchased with cash due to the regulations of lenders and programs. A buyer still can obtain a private mortgage for a condo purchase.  This often comes at a much higher cost, as many private lenders will require a minimum of 20% down on a condo purchase.  Purchasing a condo may not be the best fit if you do not have a substantial amount of money saved for a down payment.

Know What the Condo Includes

This may sound like a silly tip, but it’s important to know exactly what the condo includes.  When purchasing your first condo, make sure you find out if the condo includes a reserved parking spot or additional storage!  Does the condo community offer additional parking for your guests who visit you?  Is the parking spot in a covered garage? It’s important you know that the parking spaces and/or additional storage areas are going to be available at the time of closing before you purchase the condo!  The last thing you want to find out is you have no where to park your car a week prior to closing.

Know What the Association Fees Are

In most condo communities, there is a monthly, quarterly, bi-annual, or annual fee that is required by each resident.  The association fees are used to cover common expenses such as insurance and maintenance.A well-run condo community will be happy to share their financial statements to a potential purchaser.  It’s important to know when buying a condo that the community has a large amount of reserve funds in the event a major repair is required, such as a roof replacement.  Ask the community how the association fees are divided and where they are distributed too.

Ask About Special Assessments  

                                                      
First it’s important to understand what a special assessment is.  A special assessment is typically a large fee that is charged to cover a significant project within the community.  An example of a significant project that would be considered a special assessment, is a structural repair to the condo. Why is this an important tip for a first time condo buyer?  If a special assessment is in the future plans, it’s possible that the association fees can raise for a specific period of time.  For example, a condo with a monthly association fee of $400 could increase to $500 for a year to cover the expense of a roof replacement.  Any planned special assessments should be provided to a potential purchaser with full disclosure.

Research Maintenance and Management Company

Knowing who maintains the property is extremely important!  Who is in charge of cleaning the common areas?  Is the work completed by an outside company or are the residents of the community encouraged to help with the upkeep?  A condo community that is not well maintained can be very frustrating and can also effect the resale of the condo in the future!

Predict Your Future Plans

Predict the future?  Foolish, I know!  It’s impossible to know exactly what is going to occur in the future, but most people have a plan for their future.  This should be no different when buying your first condo!A condos value typically will not appreciate as much as a single family residence.  This is why it’s important to have a good idea what your future plans are.  If you plan on remaining in the condo for ten years, then the rate of appreciation is not as important if you plan on moving in a year or two. 

The Good News

Iloilo Business Park, Megaworld’s largest business township community in Western Visayas offers the most exclusive, well-conceptualized and premium condominiums that fit every condo buyer and investor’s dream of living a high-end lifestyle. It’s three sensational residential towers – One Madison Place, Lafayette Park Square and The Palladium shares unique amenities, features and vision to experience. Megaworld is the most trusted and credible condominium developer in the Philippines with over 26 years of successful project developments of their townships that exudes the “Live-Work-Play-Learn” lifestyle concept.

Inquiries and reservation? Call us at (033) 330-3462-65 or visit our showroom at the ground level of Richmonde Tower, 8 Enterprise Road, Iloilo Business Park, Mandurriao, Iloilo City. Website: http://www.iloilobusinesspark.ph.