If you have been recently thinking of buying a condominium you might want to think again. There are many factors that might cause your condominium to depreciate, some of these factors influenced by other condominium owners within your building. For further discussion of these factors you can read the article “Risks of Buying a Condominium.” However, for further explanation on how to avoid these risky condominiums just keep reading.
As you might know foreclosure of condominiums within your building will lead to depreciation of the value of your condominium. One way to avoid this phenomenon is to stay away from buildings that might have a high rate of foreclosures. One way to do this is to stay away from buying condominiums in cities that have overbuild properties in which investors thought to make a high profit and are now suffering the consequences. For example, Miami and Las Vegas, have a high rate of such properties that are currently being foreclosed and are decreasing the value of the surrounding property. Don’t get yourself into buying a condominium in one of these cities. You are much better of renting if you live in those cities.
Furthermore, if you are buying a condominium do some research on how the prices of these condominiums have fluctuated over time. What was the condominium worth two years ago, and has the price decreasing in the past two month. How many units are currently for sale? If there are more than 10% of the units for sale, this is a good sign for further investigation. Also research how many of the units have been foreclosed.
Next, read the minutes from the meetings of the homeowners association. Those minutes might reveal some information that can’t be found in any other way. Is the association planning on raising the assessment fees? Are there any major repairs that will have to be done soon, such as fixing the roof. Has the building been breaking apart i