As the title implies, I am looking into getting into a home of some sort in the next few years and having my money go towards something. Unfortunately, houses and even town homes are out of my price range and I assume they will remain that way for awhile. Condo's anywhere realistically close to my job are the only thing within my price range and I would like to stay where I am at. I don't need a lot of space or fancy perks, just somewhere that is safe, and close to work. I have read that condos don't have great resale value and may not be worth it for most but being a single guy with no dependents, it seems like a decent choice. Please let me know if any of you have any first hand experience with this or could offer some advice. Thank you
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I live in a condo in Florida 6 months/year and a house for the other 6 months. For the past 2 years I have served on the Board of our COA (Condo Owners Association). Things I'd suggest are these:
1) Financial. Get a copy of your current budget. In particular, look at the reserve amounts. Condos are required to set aside money every year for long term expenses like painting, parking lot repair and roofing. If these are underfunded when the time comes to replace a new roof, you will get an extra assessment for your share of the difference between your reserve and what the roofers get paid. This can be several thousand dollars. Second, make sure you ask what your COA fees are and when they were last raised. Some COAs get lax on infrastructure repairs in order to limit budget increases. This is foolish as maintenance will catch up with everyone at some point. Finally, take a walk around the property. Determine in your mind if it's well cared for, how does the roof look, is there standing water after a rain, and the condition of the parking lot. Simply looking around may give you and idea of how well the buildings are being funded and cared for.
2) Bylaws. All condos have rules for the residents. Make sure you get, read and understand all the condo rules. Some places, like where I live, are fairly benign. Others have firm rules on just about everything. Look for rules governing pets, smoking, visitor parking, fines and use of public areas and how rules for or against these might affect you.
3) Noise. Condos are apartments. You may have people immediately above, below or next to your unit. Visit one or more units to try to determine how sound proof they might be. Some are echo chambers and some are not too bad. Our condo building is only two stories, but has a requirement for a certain amount of insulation under flooring for upstairs units which makes them fairly quiet. I've been in other condos that have no such requirement. Unless you are partially deaf, I wouldn't recommend those.
4) Location. If you are in Florida, be very wary of any condo right now. With the Surfside condo collapse 3 years ago, Florida has passed extensive legislation for condos 3 stories and higher which may be very, very expensive for residents. In addition, insurance and flood insurance premiums have been known to increase 40%, 50% and even 100%+ on some properties. We feel fortunate ours increased only 18% this year, but that's because we put on a new roof 3 years ago. On the plus side, in the 8 years I've owned my condo, it's increased in value and is worth double what I paid for it.
5) COA. Many people hate their COA (r/hoa), claiming they are run by Nazis or similar rhetoric. COAs are a perfect democracy. The more individuals who get involved in running the operation, the better quality of life you will have. For those who ignore their board meetings, don't follow the issues and don't vote, well, they get what they deserve. If you ultimately decide to purchase a condo, I urge you to at least go to Board meetings, get to know your Board members and be part of solution.
I like my condo and my COA, but I recognized there are a variety of experiences. Just make sure you do enough due diligence to assure yourself you know what you are purchasing, should you continue down this path. All the best to you.