If you are in the market to buy a condo or loft, it’s important to understand the differences between living in a community based building versus a single-family home and to determine if the Loft/condo lifestyle is right for you. Condos make the most sense if you want to live in an area where tradtional homes are too expensive, or don’t exist.
Condos are usually less expensive than single-family homes and have lower maintenance requirements, making them good options if you are not looking to be handy or crafty. Plus, if you want to take off you don’t need a house sitter to water your lawn.
Loans are harder to get for a condo, and more so for a loft because some lenders have strict requirements regarding owner occupancy and loan-to-value ratios.
Condo owners pay monthly fees that cover the cost for ongoing maintenance and repairs of common areas within the complex, such as the grounds, pools, lobbies, elevators, and recreation rooms. On the up side your property will always be well maintained for you to use.
Should you own a condo or loft?Â
One of the first things you need to ask yourself is, “Are you the condo type?” What exactly does that mean? Being a city-dweller, for one. Many condos are located in urban settings. Condos are springing up all over the 213 LA core. New developments from Hollywood to the downtown core neighborhoods, and and some are even building items of convenience right into the development, including grocery stores, bank branches, and other businesses. With that convenience may come more noise and congestion.
If you are thinking about a certain location for a potential condo purchase, check the area out at different times of the day and night to see how loud or brightly lit it is. If noise or light is an issue for you, this may not be the right choice. If you want to live in DTLA a loft or condo is going to be your best option.
One of the things that come with condo ownership is the Homeowners Association (HOA). It sets out a declaration of covenants, conditions, and restrictions (CC&Rs) that lists things that you, as the condo owner, must comply with in order to live there. If you find that you won’t be able to abide by the CC&Rs, condo life might not be for you. Non-compliance could mean you could be fined, forced to comply, or even sued.
Purchasing a condo may be more difficult than purchasing a house. Lenders are very careful when giving out loans for this type of residence. They usually require that a certain percentage of the units have people living in them, or are, as they call it, “owner-occupied.”1
Another restriction may be how many condos are allowed to be owned by one investor. Usually, lenders do not want one person to own more than 10% of the units in a building.2 Many times, lenders will also have regulations relating to the building’s occupancy rate. Some lenders require at least 90% of the units to be sold before offering any financing.
Condominiums can be a good investment for the right buyer in the right location when times are tough, though they can be harder to buy and sell than a detached house. Before purchasing a condo, be sure to do your due diligence and check out the HOA, CC&Rs, and any tax and insurance situations.
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Source Article from investopedia
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Also, be sure to get a real estate agent and a loan officer that has a lot of condo sales experience, as the issues surrounding such a purchase are not as simple as those with a traditional single-family home.
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Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.
