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Owneship risks associated with buying a condo

Normally, it is said that Mortgage companies ask for a higher down payment when financing a condo. What are the ownership risks associated with condo's that I as a buyer should be aware of.
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August 30 2013 - Washington Township
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Answers (3)

Hi-
 I would investigate:
1. Default rate for current owners in condo. Amount of total unpaid condo dues for past year..most important. If your neighbors are not paying, you will need to pay more somewhere down the road. (Default also includes number of foreclosures, etc)
2. FHA financing available- if not, higher down payments usually mean slower sales, lower prices... not always true though, if high end, luxury type condo. Check your local market.
3. Read the rules and regulations.. you may not like some of the rules.
4. Check number/percentage of rentals in community.
5. Condo fee include utilities?
  Most of this is in Condo Documents- you usually get it after making offer, but depending on your local/state laws, you may have a short time to investigate. Check it out before making offer.
Best to you!!
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August 31 2013
Depends on the market. Here in Denver, condos have not been a strong investment. i.e.; not much appreciation long term. So, that's a risk. Look at the long term appreciation #'s in your local market.
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August 30 2013
Hello. In my opinion there is little risk in condo ownership. As far as banks the only time I have experienced a problem is if the particular community is not FHA approved. This usually occurs if the owner occupied to tenant ratio is scewed. I have not experienced the banks requiring a larger down payment for condo purchases. I hope this answered some of your questions.
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August 30 2013
 
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