Buying Real Estate What Can You Expect?
We are seduced by the d©cor, the ambiance, the view, and other visual effects when we are buying a condo but we should really be checking something else that is not visual.
Most of the time, the Home Owners Association or HOA plays a very nondescript part in the whole process of choosing a condo especially for first-time condo buyers. But if you hit an unlucky situation after moving in, then the HOA can play a very large part.
If you want to avoid a surprise, then try to ask a few questions about the HOA. One of the important factors would be 'who is running the show?' When it comes to a very small condo complex, it may be run by residents but a professional management company is preferable, especially in a condo of any size.
Professional management companies do charge for their services but since they will use the same company many times, these companies can often save this fee by obtaining lower quotes for repairs. Aside from that, there is a chance of the company using their influence on resident votes, so they may be construed as more fair. To them, this is a business and so the HOA will run as such rather than as a part-time rush before each meeting is due.
Always ask to see the rules of the HOA, the financial report, the by-laws and the minutes of the last several meetings. The conditions, covenants and restrictions (CC&Rs) will affect your lifestyle, so make sure they 'fit in' with it.
What the financial report will do is tell you if there are any big increases in the fees coming up, or if there are any 'emergency' fees due soon. This raises the important question, what will happen if there is a big emergency? How much money is in the HOA and how is it paid are other questions that will be raised.
The maintenance reserves will be important; there will hopefully be approximately one third of the gross annual fees charged to all residents in the reserves. Although it is manageable, a favorable minimum amount would be $4,000 per condo.
There is another aspect that the HOA manages and that is the percentage of rental units allowable. Under 20% is passable, but any more and the re-sale of the condos becomes risky. Renters often do not have the same respect for property or neighbors, so they decrease desireability. Also mortgage companies are aware of this and are reluctant to give out mortgages to high-rental complexes.
Once you have ironed out all these questions, you can consider whether you would like to get a professional inspection done. Included in these inspections are the common areas as well as the condo you are interested in. When all of these precautions are in place, you will then feel more secure to go ahead and make an offer.
If you are just beginning your search for Playa Del Carmen real estate you will undoubtedly have many questions about the process. Let us show you Mexico real estate for sale and guide you through the process.