If you are planning to buy a condominium, you need to know how to choose the right project to avoid operational risks, financial losses and impact on the long-term value of buying an apartment.
Smart buyers will thoroughly learn information related to maintenance and upkeep, reserve funds and other safety issues through agents, apartment management or operating units.
Quality of the apartment
Find out about the time the apartment was built. Most buildings last a very long time and will show any structural problems within the first few years. However, apartments are usually warranted for the structure, roof and materials for a certain number of years.
If you’re looking at an older apartment building, ask the management how often they conduct inspections of the building’s condition, and whether the inspections reveal problems that need immediate repair. or not in the future (eg annual fire drills and inspections). If so, do they have a plan to fix these problems?
Contingency plans and contingencies
Management can perform a contingency study, or integrate it in the annual plan, that includes a breakdown of the costs of future maintenance, repair and replacement of general items – such as replacement. roof or repair a parking lot. From there, they have a basis to estimate the need for the reserve fund.
The amount of cash in the reserve fund should also be clearly listed. Buyer can request figures and related documents from sales agent or developer. The amount of cash needed in the fund can vary according to the size, age, and condition of a building or individual market.
Please note that it is not advisable to spend money on an apartment that does not have a reserve fund, does not have a maintenance plan, and has been built for a long time. Because in addition to the inconvenience of living here, this apartment can also slide in price quickly.
Also, you need to find out if the building is fully insured, for example for the common areas and utilities of the building. This will provide financial stability and insurance for your own apartment.
You can ask the seller or agent about the service fee and how often the service fee increases. Fees must be consistent with the general market and the quality of service that customers receive. Meanwhile, too frequent and sudden increases in fees can tell a lot about management’s capacity.
In some countries like the US, experts say service fees may increase by at least 3 times in the previous 5 years to match the rate of inflation but still balance the service provided to residents.
In addition, you need to find out if the landlords are paying the service fees on time. A ratio of 5-10% of the total number of owners is considered good. If more than 10% of owners are overdue for 60 days of service fees, this indicates a risk of financial instability to operate the building, or conflicts between residents and management that could impact even to the apartment you plan to buy.
Infrastructure and quality of operation
In addition to apartment in Empire City for rent issues, look at shared areas and amenities such as carpeting in the lobby, lighting in the parking lot, and landscaping. Also, take a look at safety and security devices such as fire protection and access cards to control the security of the building. If the building management is weak in even the small things above, they may not be able to handle the more important issues.
In addition, see if the rules in the building are well controlled by management and strictly followed by residents, such as pet ownership, smoking areas or quiet hours when residents are not allowed to stay. Do not hold noisy parties or allow contractors to work. Compliance with these regulations directly affects the quality of life of residents as well as the value of the apartment.