Consider Buying a Condo? Verify costs, fees and rules before the Buy!

Consider Buying a Condo? Verify costs, fees and rules before the Buy!

Many of my friends that live in the Loop have decided to purchase a condo rather than rent. Condos can be a good investment but make sure you do your homework before you make the purchase.

Part of your homework includes the due diligence work you should complete before any real estate purchase. You want to verify the proeprty taxes and all fees involved. Fidn out if the complex has received a tax abatment and will that tax abatemnet expires anytim soon?

Some condos have special assessments and you want to ensure you are not charged a large special assessment for something that is coming up in the future. Also, I know in certain areas of the country such as Hawaii a number of the condos are are "leasehold" land and are not "fee simple" land. I saw a 1 bedroom ocean front condo in Maui, Hawaii for around $50,000. But it is on leasehold land that would be $275,000 to purchase.(ouch!) Thus, you have to pay rent each month for the land. This is an additional cost that people may not factor in when ruinning the numbers.

Lastly, look at the condo association bylaws, rules and other fees. How much is the monthly association fee and what exactly does it cover? Does the condo association have any restrictions such as no rentals or limiting rentals? Good luck on your future deals! Believe and Achieve! Smiling - Joe


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