Tips for buying a condo

[Anonymous]

My parents are moving back into this area (Nova) and downsizing. Need to find a condo that can accommodate them as they age (eg elevator vs stairs).
Once they pass, planning on keeping the condo for rental income.

What are some tips to buying a condo? Pitfalls to avoid?

[Anonymous]

Look at the condo fees. What do they cover? Has the building been keeping up on maintenance and upgrades, or is it overdue? Does the building have a good reserve/how often do they need to do special assessments for major projects? Look at what in-unit maintenance is covered by the monthly fee.

Check to see if there are limits on renting out units--some associations limit what percentage of units can be rentals, or other restrictions.

[Anonymous]

The financial condition of the association is important. You'll want to see the most recent engineer's inspection of the building and condition of its major systems.

Also, be aware a condo in a building with a high ratio of renters to owner occupants can be difficult or impossible to buy or sell, because banks won't lend against them.

[Anonymous]

dont buy a condo - the condo fees make it unlikely you'll ever rent for a profit at the current rental rate. Also the amount of condos in your area can suppress prices when you do decide to sell. I would find a 55+ community and sell when they pass.

[Anonymous]

Anonymous wrote:The financial condition of the association is important. You'll want to see the most recent engineer's inspection of the building and condition of its major systems.

Also, be aware a condo in a building with a high ratio of renters to owner occupants can be difficult or impossible to buy or sell, because banks won't lend against them.

The renter thing is a myth. Old busy bodies on board tell you that. And the renter thing is hard to find out in some condos. My condo which I am on the board of we only once in last 7 years got a single questionnaire from a bank regarding renter vs owner occupancy. Now in a Fannie approved building they ask some questions but the renter vs owner however it only impacts a mortgage when an investor buys into the building to rent they would allow it if above threshold. A primary owner will still go through.

Also a lot of condos only issue financials once a year, my condo does it every May right after tax return. Not all buildings do a formal reserve study or engineers report. My state I own the condo not required and no condo lawyer in his right mind would
Allow it to be done unless required by law.

Also self management buildings means pretty much you will end up on board or helping out at some point. Also a lot of condos dont want conforming mortgages as it causes default risk

[Anonymous]

Anonymous wrote:

Anonymous wrote:The financial condition of the association is important. You'll want to see the most recent engineer's inspection of the building and condition of its major systems.

Also, be aware a condo in a building with a high ratio of renters to owner occupants can be difficult or impossible to buy or sell, because banks won't lend against them.

The renter thing is a myth. Old busy bodies on board tell you that. And the renter thing is hard to find out in some condos. My condo which I am on the board of we only once in last 7 years got a single questionnaire from a bank regarding renter vs owner occupancy. Now in a Fannie approved building they ask some questions but the renter vs owner however it only impacts a mortgage when an investor buys into the building to rent they would allow it if above threshold. A primary owner will still go through.

Also a lot of condos only issue financials once a year, my condo does it every May right after tax return. Not all buildings do a formal reserve study or engineers report. My state I own the condo not required and no condo lawyer in his right mind would
Allow it to be done unless required by law.

Also self management buildings means pretty much you will end up on board or helping out at some point. Also a lot of condos dont want conforming mortgages as it causes default risk

In my larger building, it is so not a myth (and something banks started to care about a whole lot during the financial crisis - but I think it migth be the difference between the self management building PP describes and my larger one. That said, you may want the larger, professionally managed one for your parents, as they also tend to come with more amenities, etc.

In addition to elevators, you might want to look for buildings with on site maintenance staff and easy visitor parking, which helps if they eventually want to use home health aids. A staffed front desk is nice for deliveries.

You may find there's a bit of tension between the type of building that's nice for retirees looking to age in place (other retires, lots of support services, quiet, convenient visitor parkign) and places that are easy to rent and have a lot of appreciation (i.e. millenial renters). Might want to focus on a place that suits their needs and with a relatively strong resale history, so that selling it, if that becomes sensible, is easier. That said, a lot of the large building 1960s condos on Connecticut Ave in DC seem to have a lot of older people and good numbers of rentals to younger ones.

[Anonymous]

Don’t do it. Condos are overpriced apartments that are hard to ditch when things go south...

[Anonymous]

Anonymous wrote:Don’t do it. Condos are overpriced apartments that are hard to ditch when things go south...

That's silly - OP was clear about why their retired parents wanted the features of a condo they could age in place in.

[Anonymous]

If not a high rise figure out where the AC unit is. If it’s on the roof you will need a crane to replace it and that can be very costly.

[Anonymous]

Noise and odors are two big issues that they should consider. And how prevalent (and therefore disruptive) they are may vary by unit within the same building.

My parents lucked out in their condo purchase but we have friends whose mother is caught in some sort of hell in her condo. Her upstairs neighbor and her next door neighbor are at war over a variety of issues and they keep trying to drag our friend's mom into it. She has taken to timing her entrance and departure for her unit so that she can avoid them! Then there is one person on her floor who doesn't use her kitchen fan when she cooks and the garlic smell is so strong that it overwhelming and gagging as soon as you step off of the elevator.

They didn't know about the neighbor war when she purchased her condo - and I'm not sure how you would unless you talk to the people - but the garlic stench they should have investigated instead of writing it off as a one-time event when they toured the condo. They didn't go back again until the inspection otherwise they would have noticed that it was all the time.

Good luck to your parents. Moving into a condo has been the best thing in the world for my parents. They especially love all the amenities. They are very happy in a condo and it certainly is making their lives a lot easier and more enjoyable!

[Anonymous]

Anonymous wrote:dont buy a condo - the condo fees make it unlikely you'll ever rent for a profit at the current rental rate. Also the amount of condos in your area can suppress prices when you do decide to sell. I would find a 55+ community and sell when they pass.

OP here- they are buying it cash, no mortgage. So if I inherit it, I’ll only have to pay taxes and condo fee. So we should make money on it.

[Anonymous]

Underground parking has been a perk for my parents. Also please make sure the showers are large enough to fit a seat. Add grab bars before they are necessary. Pay attention to thresholds. Thresholds are trip hazards and can be problematic with assistive walking devices.

[Anonymous]

Anonymous wrote:Noise and odors are two big issues that they should consider. And how prevalent (and therefore disruptive) they are may vary by unit within the same building.

My parents lucked out in their condo purchase but we have friends whose mother is caught in some sort of hell in her condo. Her upstairs neighbor and her next door neighbor are at war over a variety of issues and they keep trying to drag our friend's mom into it. She has taken to timing her entrance and departure for her unit so that she can avoid them! Then there is one person on her floor who doesn't use her kitchen fan when she cooks and the garlic smell is so strong that it overwhelming and gagging as soon as you step off of the elevator.

They didn't know about the neighbor war when she purchased her condo - and I'm not sure how you would unless you talk to the people - but the garlic stench they should have investigated instead of writing it off as a one-time event when they toured the condo. They didn't go back again until the inspection otherwise they would have noticed that it was all the time.

Good luck to your parents. Moving into a condo has been the best thing in the world for my parents. They especially love all the amenities. They are very happy in a condo and it certainly is making their lives a lot easier and more enjoyable!

They must live in my building.