Are you looking to buy a condo?
You’re making a smart decision. Condo living offers a number of unique benefits, including low or zero maintenance costs on your part, great security, access to in-house amenities like a pool and fitness center, and you get to live in close proximity to city life.
In the U.S., the average cost of a condo is about $250,000. Although cheaper than the cost of a single-family home, this is still a lot of money. You want to make sure you’re making a sound investment.
To steer you in the right direction, we’re sharing common mistakes to avoid when buying a condo.
Read on!
1. Buying a Condo When a Condo Isn’t What You Need
It’s true that condo living has attractive benefits. However, condo living isn’t for everyone.
As such, the first mistake to avoid when buying a condo is investing in the property when you really aren’t a condo person. This is especially important if you’re planning to make the property your residence.
What’s the worst that can happen if you buy a condo and happen not to love condo living?
If money isn’t a problem, you can rent out the property and buy another type of home elsewhere. But if the condo is your only residence, you could be forced to sell it so you can raise funds to buy a home you love. When you sell, there’s no guarantee you’ll make a profit, let alone recoup the money you spent on it.
2. Choosing the Wrong Location
In most cases, condos are built within big cities. So, if you’re a lover of city living, you might be inclined to buy a condo.
However, cities and big towns aren’t created equal. Life in New York City, for instance, is different from life in Washington, DC.
When buying a condo, ensure you’re choosing the location wisely. Don’t just look at the city. Look at the different neighborhoods and settle on a location that suits your lifestyle.
If you get the location wrong, you could want to relocate, which might mean putting the property on the market so you can raise money to buy another condo elsewhere.
On the note, if you’re looking to snap up a condo in DC, read this guide for deeper insight.
3. Failing to Get Your Finances in Order
There are two main ways to buy a condo: cash or mortgage.
If you’re anything like most condo buyers, you’ll finance the purchase using a mortgage. Unlike buying in cash where you just need to find the property of your choice and make the cash transfer, getting a mortgage is a multi-step process that can take several days.
Get a mortgage pre-approval before you start hunting for a condo. This way, you’ll know the price range of the condos you should be looking for.
Avoid These Mistakes When Buying a Condo
Buying a condo is a smart decision, but there are things that can go wrong if you aren’t diligent. You could lose a lot of money or waste time if you make any of the mistakes fleshed out above.
All the best and keep reading our blog for more tips and insights.
