Posted: Sun Jan 14, 2007 5:24 pm Post subject: condos?? good or bad
I am thinking of buying a condo in Minneapolis or St Paul MN. I am not looking at getting a penthouse - perhaps spending around $150,000. However, I am concerned about the glut of condos in MN and around the country. If I buy a condo and it starts losing owners to renters because of the glut - I am concerned about trying to sell the place if I want. I am also concerned about assessment fees I read the associations can hit you with. So, my question is - do mortgage companies and realtors research these places? Can I really find out if the association is in good shape? Should I have a lawyer check an association out? What are your opinions about condos? Are the association fees worth the hastle of taking care of a lawn etc? Or am I better off getting a single family home or a townhome? Have any of you had experience with this? Do you think condos are just glorified apartments with no privacy and a financial risk? Thank you! _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You can take help from a real estate agent. He may help you in finding out if the association is worth staying or not. _________________ Procrastination is the enemy of your financial sucess
Posted: Mon Jan 15, 2007 5:00 am Post subject: RE: condo association
Yes Sally, mortgage companies do research the condo association before offering loans against such properties. And, not all lenders provide loans for such properties.
If you are interested in finding out if the association is in good shape, you may consult and take help from a home inspector. He will be able to find out if the condo is in good shape and whether it's worth investing money on it.
I understand getting an inspector. I am concerned about any kind of assessments that may happen after I buy - maybe a few years down the road. I read about a woman in the Twin Cities that had to take out a home equity loan to cover windows having to be replaced in the entire condo complex. It was over $10,000. When I have looked at MLS listings for condos, I'll see notations like "elevator assessement has been paid." So, I am assuming that owners were paying above and beyond their association dues to pay for elevators to be fixed or replaced. This was not a real old building either. I was wondering if there was anyway to know, in general, what kind of shape is the entire building or if there will be any major assessments coming down the pipeline.
You should inquire whether a reserve is maintained by the association for unexpected repairs. Such information will help you determine if the association charges special assessment fees.
Also if possible go through the minutes of their meetings for the past few months, which will help you to know if there are any future plans made out by the association to develop any facility or addition to the infrastructure like a gym, swimming pool which can result in increase in fees in future.
Thanks
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