Things to Beware of Before Purchase.
Monday, March 15th, 2010
Take the time to check out the complex before you buy and look out for these red flags:
-If more than half or so of the units are rentals, think twice about the project. Upkeep may be poor and some lenders will not make a loan on a unit in the complex, which could reduce the long-term value of your investment.
-If the condo association doesn’t have a healthy reserve fund, beware. If there isn’t money to fix major items such as a new roof or plumbing, the members will be hit with a special assessment to pay the tab.
-Avoid a condo association in which the board of directors isn’t getting along. They will make poor decisions for everyone else in spite of one another.
-Steer clear of a condo project that is heavily involved in litigation. Lawsuits with builders and other homeowners can put a cloud over the project
Source: Mid South Condos