Here are some good tips to follow as you consider buying condos in San Diego.
1. Peep into those discussion sessions
Usually condos have a management typically known as the association. These associations hold routine meetings to discuss problems of the residents. The running and upcoming projects for the condo may also be part of the agenda. So if you look at the minutes of those board-meetings, the heartbeat of the condo and its residents should become crystal clear to you. As for an instance, if you see that the meeting is discussing issues like plumbing or roof-leakage, you will take it as a sign of poor maintenance.
2. Feel the virtues
You should be careful to find whether or not there is alarming rate of criminal behaviors among the residents. With this you can also look into sensitive facts like how sincere people are in paying their rents or charges and dues. If you see that there are huge numbers of defaulters in those condos- you better take this seriously. You must also try to explore if the association in charge of managing the condos are sufficiently backed by funds.
3. Is adequate maintenance/repair fund handy?
Another subject to scrutinize is the maintenance or repair funds. Try to figure out whether or not the community undertook any reserve-fund reviewing within last 5 years. A famous condo expert gives us a decent yardstick. The theory suggests that when the age of that complex is ten years or below, a reserve fund amounting to 10% of those replaceable itemsí cost. Good examples of replaceable items are roofs and paths. The tennis courts are also included in replaceable items.
However, when the complex is aging around ten to twenty years, this should call for a 25% fund. For complexes aging over 20 years, there is no alternative to a 50% fund of the replacement things.
4. Make sure your back is covered
A vital piece of paper to look at for the homeowners is the certificate of insurance. This certificate is actually a nutshell of different policies imposed by the condo associations. So what to look in it? To begin with, you better check what are those exact properties covered by those policies.
Even more important, you should check whether or not those replacement costs (that the policy covers) are a reasonable estimate of all expenses needed for rebuilding. Another reasonable question to ask is- whether or not those policies include a building-ordinance clause. The goal of this clause is to ensure that your insurances are covering costs of getting that building in front of the code- just in case some rebuilding is needed.
In cases of old buildings, you may face different code upgrades. Last of all, you need to ensure all of those association policies are crystal clear to you. You should comprehend precisely where you are covered and what your precise liabilities are.
It is a smart move to get your own belongings as well as other items inside those units. Get to know things that remain outside your condo association’s policy coverage. It is a good idea to take assistance of a reliable agent who knows your state laws.
5. Do not end up in condos with legal hassles
If you are buying a home for your family, you may not need any law nerd to assist. But when it comes to a condo, you better stay prepared to take the assistance of local real estate law practitioners. They will chew those difficult bylaws of a condo association.
6. How good is it to live in?
The rule of thumb here is for a renter population above 10%, the condo association should have clear-cut rental policies. Those policies may come as listed as bylaws. Thy may also come in the form of amendments. So the facts to know here are- whether the management officials will get renters on your behalf.
Another quarry should be how successful they are in finding decent renters. It is a good idea to interview tenants about their satisfaction levels. Get clear idea about the rental lease of that association. Be prepared of the fact that bylaws are alterable by the association.
7. Do not step into owner managed condos
In fact these types of condos are to be strictly avoided. There are good examples but in most of the cases the results are not satisfactory. Self-management usually fails for the majority of the owners. Some owners live in different states, so imagine how solid their distant management would be!
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