Buying a Condominium Rather Than a Single-Family Home
Are condos treated differently compared to single-family homes?
Quite simply, yes, and here is the reason: With a condo, you truly own just your interior area. You’re thus dependent about the fiscal health as well as the ethical responsibility of the developer or homeowners’ association to keep the outside your house and also to preserve your investment value as time passes. Will the developer still be interested in keeping your property whenever you’re ready to market? Or will he’s gone on to make newer subdivisions? Generally, freestanding twin vew showflat units retain their worth better than condos that are included inside a floor of a larger building.
If you acquire a condo, make sure it matches all Fannie Mae and Freddie Mac criteria, like the number of units each building, the amount of distance between buildings and the amount of developer-owned units. (Fannie Mae and Freddie Mac would be the origin of most conforming, lower-interest-rate mortgage loans.) Otherwise, you might find it difficult to pay and you will force another buyer to some nonconforming or sub-prime mortgage using a high rate of interest.
To offset these additional costs to the purchaser, you might then need to lessen the purchase price of the condo, leading to less profit for you.
Lately a twin vew showflat developer in the city dropped into financial straits (possibly from offering a lot of “unbelievable” bargains). Let us say in precisely the exact same time you obtained a job offer for your dream occupation, but it might require that you relocate to Phoenix. You possess the “cream puff” unit of this area. The appraiser estimated its market value at $150,000. You would be able to choose the profits from your purchase and produce a nice down payment onto a lavish ranch in town. You can already see yourself basking in the February sun! But the developer must raise money fast, so that he’s unloading his competing, twenty five developer-owned units in fire-sale costs–at fifty cents on the dollar. How likely is one to get anything even near the industry value you are anticipating?Tags: twin, vew