So you have considered to buy a cheap condo for sale? I understand, there might be a lot of things that you’ve considered that drove you to create that decision. These things might be things like the look of the model unit (aesthetics), nice amenities, 24 hour security and of course the prestige that comes with it. But before you make a final choice, I would like to give you an advice. This advice comes from a condo owner so these things are basically based from experience.
5 Things To Consider When Buying a Condo
Location – This may not be new to you. When investing in real estate or even when putting up a business, the first thing that you should consider is location, location location! You cannot move a condo to another place so it might be wise to give this a lot of consideration. How will the area surrounding the condo be in 3 to 5 years time? Is the place accessible? Is it near your work or are there nearby stores where you can easily buy food? These are especially important if you want to put your condo for rent, but is equally important even if you only want to be your primary residence.
Budget – Aside from the cash out usually required in purchasing a property you may want to consider having a buffer equivalent to at least 2 months of your expected monthly amortization. Sometimes, unexpected things would just pop out like your broker would usually not tell you that there are processing fees involved when your in-house loan is about to be approved.
Prize – How much is the prize? As condo units rise higher or near completion, the prices also goes higher. This might sound ridiculous for first time buyers but buying a condo unit on the pre-selling stage might be a good consideration if you consider prize as a deciding factor. You can sometimes get a discount of 10 to 15% depending on how much the developer would give. Also, you might want to buy a condo that fits your budget but buy as big as you can. Condos are generally warmer on the inside compared to houses so ventilation through more space should always be favored. Compare prices, some condos doesn’t come fully furnished but are sold cheaper and you can buy bigger condos when you buy the “bare” ones.
Reputation – Consider researching about the reputation of the condo developer or the unit owner who is selling to you. I currently live in a condo that I bought from a developer that had 15 years of developing condominiums. I’ve seen their other projects as well and I’ve talked to people living there for quite sometime and they were happy. This tells me that I’m in safe hands… You don’t want to be losing your investment if ever that project doesn’t push through do you? Even if you get back your money, it could take sometime as legal matters have to be finalized before you can get your money back. So do your due diligence and check the company/developer’s background by asking their old clients, checking their website and other ways you can think of.
Maintenance – Finally, you wouldn’t want to buy a property that would easily lose value because of poor maintenance. You also wouldn’t want to swim on a dirty pool. Remember that you are buying air space and there are a lot of common areas or places that are shared by everyone. You want to buy a condominium that is highly maintained but with high maintenance comes price. This is where association dues comes in which is usually charged per square meter of your unit. Regardless, you should always look for a property that aims to build a good community around it.