BOULDER – Buying a condo or townhome is different than buying a single-family house. Owning a condo means you own the individual unit as well as an interest in the common areas. Owning a single-family townhome means you own the individual unit plus the land it’s on. If you’re considering buying a condo or townhome, ask these questions about the complex:
Will the complex maintain its value? Look around – construction or development nearby could influence future resale value. Will future construction block your view?
How comfortable is the complex? Listen to see if you can hear road noise, dogs or neighbors when you’re in the unit. Keep in mind what time of day you’re visiting the unit. Scheduling a showing when neighbors are more likely to be at home can provide better insight into the unit’s environment. You could also stop by the complex in the evening or morning to see how busy and noisy it is around the area at different times of the day.
What is the percentage of owner-occupied units versus rental owned units in the complex? Complexes are deemed to be more stable when they have a high percentage of owner occupants. The occupancy ratio is an important factor for investor financing but does not affect owner-occupied loans.
Don’t forget to consider your pets and the pet-ownership rules within a complex. Make sure that if the complex is a pet-friendly environment, it’s the right fit for you.
If you’re buying a vacation condo and desire to do short-term rentals, be sure it’s allowed in both your city and complex.
For more on this subject, visit the Elevations Blog at elevationscu.com/condotownhome
Lauri Larson is a Mortgage Loan Originator at Elevations Credit Union in Boulder. If you have questions regarding mortgages, please call 303.402.5451 or e-mail [email protected].
