Hello, Im planning on buying a brand-new constructed condo in Gainesville, FL. I've never bought a condo before, can anybody with prior experience fill me in about the pros and cons on condos, pre-owned vs. newly constructed, anythings else I need to keep an eye out for, etc? Thanks in advance.

 

usally a new place you can pick out what kind of cabinets you want and other options. The only downside to a condo is the condo fees associated with them every month. I know condo fees in my area range from 180-240 a month on top of your mortgage and other bills.

 

Is your homeowners insurance covered in your fees? It was in this one place I looked at and I wasn't sure if that's the norm or not.

 

Yes, it's normal, but that's only the exterior. You are still resposible in between the walls. Well, that's at least how it goes here.

 

That makes sense. Obviously you'll want more protection if you have valuables in your home.

 

Not just valuables, also any interior fixtures. In the case of a fire, for instance, the building insurance will cover the cost of rebuilding the structure, but you would be responsible for putting in all the doors, cabinets, fixtures, carpet, etc. that were damaged.

Back to the OP - When comparing to owning a home
The pros:
- cost of ownership is usually lower
- exterior maintenance is minimal, if any

The cons:
- association dues (but they cover some utilities and maintenance expences)
- common walls and/or people above and/or below you
- restricted on what improvements you can make - mostly relating to exterior

If the choice is between owning a condo and renting, owning is usually a way better option. If the choice is between a condo and a house, then it is a more personal choice that depends on your want and needs balanced with what you can afford.

 

Reguarding the cons, the unit Im looking at is at the top floor, end unit. I could careless about what kind of improvements on the exterior, but inside is another story . So, that just leaves the association dues... Im still not sure about wether insurance is included in the association dues, and still have no idea about how much it is... I will have to get on my realtor about that.

 

I live in a condo and it has its pros and cons. I don't have to worry about maintenance (which is great since I'm rarely home), neighbors can be a PITA but overall it's pretty nice.

Watch out for associations, though. Make sure you ask for a copy of bylaws and you actually read it beforehand. I'm fighting with my company because my boyfriend's truck was towed from our parking lot over the weekend. Before that, they tried to make me cover the hardwood floors I got installed in my unit. So, make sure you know their rules.

As far as insurance goes, exterior is usually included in the HOA dues but you'll need homeowners insurance for your unit.

 

why was the truck towed? and why did they make you cover up the hardwood floor, what was their reasoning?

Also, for a brand new construction unit, how much of a wiggle room are there with the price? Let's say that the listing price is $150,000, how much are typical to negotiate off the price? any help would be greatly appreciated!

 

Most builders will not adjust the price on new construction; however, you might be able to get them to throw in some upgrades.

 

more cons... parking, if u like to have lots of friends over. people in the hoa are like a high school clique sometimes (they'll enforce the rules if they dont like u but let people they like slide)

 

When I purchased my condo last year I made an agreement with the HOA to lower their fees from $190/month to $125 since they were really trying to get condos sold. I purchased a used unit that had been completely remodled with all new appliances/cabinets/carpet/granite/marble all the fixins. Here in Cali its hard to afford to buy a home with a single income. In all I bought the condo from my boss well below market, because I put down close to 20%. Its a 2 bedroom 2 bath with a $1300 mortage. I have a roommate that I charge $700 a month so that covers 1/2. It also came with 3 assigned parking spots which is nice.

I like condo living, but it could suck depending on your neighbors. I'm just waiting for the market to go back up by the time I get "involved" so I will have a good sale and be able to afford a house.

 

WOOT, the condo should be closed next mid-week. I will definitely post up some pics for you folks.

 

Congrats.. nice to see some young people buying real estate... I really which I had done that when I was younger...

 

i am most likely going to be purchasing a condo with my parents in the near future since I cannot afford one in this area by myself. Is the noise from neighbors really that bad? I thought it would be pretty sound proof. Also, what are some other things that I should look out for? I have seen some pretty attractive offers:

No condo fees til 2010
Paid closing costs
free upgrades (hardwood, granite, stainless steel)
extra parking spot

what else can I negotiate?

 

...you're doing great so far!!

 

Selling price!!!

 

^^
Plus a buydown on the interest rate .25 to 1.0 points for lower interest rate over the 30 year period.

No matter what they tell you, yes they can and do all the time here now. Do some local market research, see what similar units are reselling for now. There may be some even though construction continues. Might want to consider even door-to-door trying to determine what others recently paid.

Don't discuss this last part with the sales office, they don't want you to keep asking for discounts. Get the best financing you can somewhere else and use that to keep them competitive. To give you financing concessions they will probably insist that you go with their perferred lender.

These things are a lot of work but must be done to insure that you end up in the best position possible. This is even more important than getting a good price on a car.

 

Looks great so far. Keep in mind that it is BUYER'S MARKET right now, use that to your advantage, builders are trying hard to move sales recently, and will be for atleast about 6 months. Hell, ask them to throw in a 42 inches Plasma TV. I paid $169,900 for mine, its 1,250 sqft, granite counter, stainless microwave, frige, dishwasher, range, prewired for security system, prewired for HD programming, 32inches lcd. My appraiser appraised it to be $185,000.

Noise is not a problem since that no one lives on top of me, and my neighbors are bookworm-types of girls.

 

Good lord, isn't that enough?

 

cleAR YOUR INBOW COCONUT!

 

19 yo buying a condo, damn! I wonder when I'll ever buy a house in the bay area.

 

^^ done.