Professional tips for buying a condominium
I don't like to write about mistakes. Therefore, here are the best tips for buying a condominium. In this way, we combine the practical with the useful. Each point is important in itself - together they are indispensable. I have had all the experiences myself, both positive and negative.
Plan for later rental
Take a close look at your dream property. I would recommend that you draw up a list of properties that the property or condominium must meet before viewing the property. Union Complex also provides you different types of plans for real estate.
You can also create a “nice-if-list”.
The advantage is that you become aware of what is necessary and which properties you can do without.
Luxury does not add value to real estate.
Both in sales and in renting.
Your life situation can change.
The purchased condominium suddenly becomes too small because offspring are announced or the apartment is suddenly too big due to a separation. And then? Of course, you can sell the apartment. Depending on how long you've been the owner, the proceeds are even tax-free. But renting out also pays off most of the time if you have already checked when selecting a property whether renting out could be an option.
Declaration of division
In the declaration of division, the individual apartments, garages, parking spaces, and the respective co-ownership share are described in detail.
You can also find information here, for example, on who has to pay what (maintenance costs).
For example, whether windows are bought by the community of owners or you are solely responsible for your apartment.
Likewise, a prohibition on keeping certain animals, for example, may have been recorded in the declaration of division or that the buyer of a condominium pays for the previous owner's housing payments. So, please keep your eyes peeled before buying a condominium and read the declaration of division carefully!
Homeowners Association and Protocol
The apartment owners or the community of apartment owners meet for a meeting to make decisions together.
Everything can be decided here but also discussed.
It is advisable to choose a neutral moderator - if there is a property manager, it is usually one of their employees.
Here you come to the article from Wikipedia - very detailed and interesting!
According to the law, a protocol must be kept.
And please, please read at least the last 5 logs or the logs of the last 3 years.
The agenda items serve as a guide.
Here you will find all the information that might be of interest to you.
You can read out renovations, problems with elevators, or anger with service providers from the respective log.
It's worth it and you should make sure when buying that you have received the logs continuously.
Property management and reserves
Property managers can do a lot of work for you if they're good.
Unfortunately, you will only notice this in the future, i.e. after the purchase.
You can, however, get your picture beforehand through the minutes of the meeting.
For the sake of interest, I called the property management company before buying and inquired about the current reserve and how it will turn out for the future.
So I was able to find out in advance that the reserve would be adjusted by 5% (pretty close after the purchase). I bought this property anyway because I knew from the property management that the increase was temporarily planned for six months. Then the maintenance reserve was reduced to below the amount I had planned.
Construction defects
When buying or even viewing an apartment, I often take an architect or civil engineer friend with me. To be honest, I have no idea about structural damage or construction defects. I don't even know where to look. However, there are tables in which you can read off the typical problems with real estate according to the year of construction. If you also get a professional to accompany you, everything should be fine.
Financing too tight when buying the condominium
If you can't pay for the property with cash, you need financing. With the “normal” purchase of a condominium without renovation, you can't miscalculate.
Purchase price + additional costs - equity capital = financing requirements
However, if you want to renovate it can be more expensive than planned.
For this reason, you should request a written cost estimate for all work
Check carefully whether this is realistic.
No price negotiation
The highest purchase price is not always decisive.
It has happened to me several times that I was able to close the deal because of my speed.
All the documents were there, I was able to make a quick decision and had the purchase price ready, as it were.
This opens up extreme room for negotiation with the seller, especially when he is in a hurry.
But also discretion, empathy or sympathy, or continuing to run the property in the interests of the landlord can be convincing arguments. For this reason, please always ask for the seller's real motive!
Obtain comparison offers for the condominium
Comparison offers when buying a condominium are extremely important.
Both with the purchase and the purchase price as well as with renovations or renovations.
You can get the first comparison based on the purchase price per square meter.
Of course, you should also consider the location, condition, and age of the property.
You can almost always find a comparative value on the relevant real estate portals.
Of course, you can also calculate your comparison value, which I would recommend to you.
It always depends on your calculation and you should always create it.
With this, you can always name YOUR purchase price to the seller and explain how you got your purchase price.
This shows the seller that you are a professional and that you know what you can pay for.
Besides, you automatically come into the negotiation.
Time pressure when buying a condominium
Time pressure in the search is really bad for you.
When selling, time pressure is very good for the buyer.
This opens up room for negotiation.
On the other hand, time pressure is extremely cumbersome when buying.
Besides, you are “at the mercy of the seller” if there are additional interested parties with you at the start.
Those who are pressed for time will usually not get a good price, except maybe with a little luck or because the location is very desirable when selling.