Observe the way in which a condominium or townhome project’s exterior is maintained. Poor exterior paint (peeling), overgrown landscaping, and other visible issues could be an indication of insufficient funds for routine upkeep or poor management.
Ask to review the yearly association budget. This will be provided by the management company or in the case of a new project the sales/ development team.
Ask owners that you meet on the project how they like living there and would they recommend it to a friend.
This is a question that is always asked by new condominium owners. Association dues are analogous to the typical types of costs associated with any single-family home. They are used to pay for routine ongoing maintenance such as landscaping, exterior upkeep, common interior area upkeep, utilities, building taxes, and insurance*. Dues are also used to pay for the amenities and services in a condominium. These amenities and services may include a fitness center, swimming pool, concierge/doorman, valet parking, or a party room. In addition most condominiums also retain a professional management company to administer the condominium finances and the day-to-day operations. As you can see if you owned a single-family home you alone would have to attend to these items. Most studies have indicated that the economies of scale that communal living affords will result in a minimum savings of 20% versus a comparably priced single-family home.
Another question about association dues revolves around the possibility of future increases in the dues. Just like anything and everyone one in a commodity driven economy, a condominium association is at the mercy of macro-economic factors that have the potential to drive up expenses. Obviously if water, electricity, wages, materials, and insurance increases it will affect all housing. The single largest factor that can have the potential for increases in condominium expenses is labor. The more people employed by the condominium association as valets, porters, doormen, concierge, cleaners, etc the more likely there will be potential increases in the dues. As an owner or a prospect you must weigh the personal advantages and convenience that these services afford versus the overall expenses in the future. As a rule of thumb, the fewer people on staff the lower the dues and the less likely there will be major increases beyond normal inflation.
When this occurs the entire estimated tax for each home the year is collected at closing and held in escrow until the taxes are due and payable, typically in October. The developer is liable for the entire amount due for the calendar year at this time. The title company will collect the balance owed and with the escrowed funds they pay the taxes owed. It should be noted that this initial year might be a bargain for the new homeowner because commercial non-single resident properties are taxed at a lower rate.
When this occurs the entire estimated tax for each home the year is collected at closing and held in escrow until the taxes are due and payable, typically in October. The developer is liable for the entire amount due for the calendar year at this time. The title company will collect the balance owed and with the escrowed funds they pay the taxes owed. It should be noted that this initial year might be a bargain for the new homeowner because commercial non-single resident properties are taxed at a lower rate. The tax rates for condominiums are identical to single-family homes. There may be some differences in the initial tax proration when purchasing a new condominium or one that has been recently converted. When a condominium is newly constructed or converted from rental apartments there is typically only one tax bill for the entire property until the condominium is recognized by the taxing authority. When this occurs the entire estimated tax for each home the year is collected at closing and held in escrow until the taxes are due and payable. The developer is liable for the entire amount due for the calendar When this occurs the entire estimated tax for each home the year is collected at closing and held in escrow until the taxes are due and payable, typically in October. The developer is liable for the entire amount due for the calendar year at this time. The title company will collect the balance owed and with the escrowed funds they pay the taxes owed. It should be noted that this initial year might be a bargain for the new homeowner because commercial non-single resident properties are taxed at a lower rate. year at this time because individual homes are not yet assessed. When the tax bill comes due in October the title company will pay the taxes due with the escrowed funds. It should be noted that this initial year maybe a bargain for the new homeowner because commercial non-single resident properties are taxed at a lower rate. Once the condominium is recorded the individual homes will be reassessed and individual tax bills will be sent to the new owners. Some mortgage lenders that are not familiar with new condominiums or conversions will need to be made aware of the status to avoid confusion and an unnecessary double-escrow. For this reason it is advisable to use a project approved lender if one is available.
