Condominium living offers several perks and benefits that town homes and single family homes cannot provide. First off, the location is very convenient. Many condos in Montreal are located in the downtown area which can cut down your commute time considerably.
Condos are also more affordable than houses. But once you find your ideal home, don’t be too quick to sign the contract. There are important questions that you need to ask before you close the deal.
Question #1: How much are the monthly condo fees?
Condos impose monthly fees to cover the maintenance of the facilities, security, improvements and repairs, etc. You need to know the exact amount you’ll be paying each month so you can plan your budget.
Question #2: How much is the reserve fund?
Most condos have a reserve fund of about 10% which will cover the cost of repairing roofs, swimming pools, etc. It’s important to find out if the association has done a review of the reserve fund in the last 5 years. If the association doesn’t have sufficient money in the reserves, homeowners will have to cover the cost of repairs themselves.
Question #3: Is the association self-managed?
You want a condo to be managed by professionals so it can function seamlessly. While being self-managed is fine, in some cases it won’t work to the homeowners’ advantage because this could lead to major disagreements.
Question #4: Are there any management issues?
You can ask for a copy of the minutes of the board meetings of association members so you can see if there are existing management issues or if there are projects underway.
Question #5: How comprehensive are the community rules?
It’s essential to go over the rules which are shown in the covenants, conditions and restrictions. Check the rules to know if they are acceptable to you before you sign on the dotted line.
Question #6: How good is the soundproofing?
Soundproofing is a big issue for many condo dwellers. You don’t want to hear your neighbors arguing at 3 AM. To find out if the condo you like has effective soundproofing, you can ask adjacent residents to turn on their stereos or TVs at normal volume.
Question #7: How resalable is the condo?
At some point in the future, you may decide to re-sell your condo. So do some digging to find out if you will be able to sell yours at a profit, say 5-10 years from now. Condo fees can play a big role in the re-sale value of a condo apartment so this should be considered carefully.
Buying a condo is a big investment and so you must take the time and effort to find out everything you can about the one you’re interested in buying before you proceed with closing the deal.
Also keep in mind that you will need to pay for other costs upfront, aside from the down payment. This includes transfer fees, legal fees and taxes. Make sure you have enough money saved up before you buy a condo to avoid getting into too much debt.
Article Submitted By Community Writer