When buying a condo, we are all seduced by the decor, the ambiance, the view, and other visual effects, when we really should be checking out something other than visual!
The Home Owners Association (HOA) often plays a very nondescript role in the entire condo selection process, especially for first- timeThe Forest Hill Condos. However, the HOA can play a huge role in the use of your finances if you find yourself in an unfortunate situation after moving out.
To avoid a surprise, ask some pertinent questions about the HOA. One of the important factors would be "who runs the show?" During a very small condo complex, it's going to be traveled by residents, but a knowledgeable management company is preferable, especially during a condo of any size.
Professional management companies charge for their services, but can often save this fee by getting lower quotes for repairs, because they will use the same company many times. There is also less chance that the company will use its influence on the votes of the residents, so they can be interpreted as more fair. Ultimately, it is a business for them, and the HOA will run as such, rather than as a part-time rush before each meeting's deadline.
Always ask to see the HOA rules, financial report, bylaws, and minutes from recent meetings. Conditions, Covenants and Restrictions (CC & Rs) will affect your lifestyle, so make sure they "fit" with it.
The financial report will tell you if there are big rate hikes coming up, or if there are "emergency" fees that are due soon. This raises the important question: what will happen if there is a major emergency? How is it paid and the way much money is within the HOA kitty?
Maintenance reserves are going to be important; there's expected to be a few third of the gross annual fees charged to all or any residents of the reserves.A favorable minimum amount would be $ 4,000 per condo, although it is manageable.
Another aspect that the HOA manages is the percentage of rental units allowed. Less than 20% is acceptable, but more and reselling the condos becomes risky. Tenants often don't have the same respect for the property or neighbors, thus lowering desirability. Furthermore, mortgage companies are aware of this and are reluctant to mortgage high-rent complexes.
Once you have resolved all of these questions, you can consider whether you would like a professional inspection. These inspections include the common areas as well as the condominium that interests you. Once all these precautions are taken, you will feel more confident to go ahead and bid.