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.

 

You can be guaranteed that your condo association fee will rise at least 5% every year. Once its over 10 years old it will rise even more. Of course what dictates those increases are what expenses your association is expected to pay. If there is a pool and they are responsible for roofs, fences, landscaping, and street repair, bank on it.

The one thing I hate about condos is that you get absolutely nothing for your property taxes. What is normally covered by property taxes ends up being the responsibility of the association.

The association I was in loved to tack on an extra 1.5 months worth of fees every year because "we went over the snow budget". This happened every year, even when it didn't snow much.

 

I'm looking at condos too, because it's the only thing I can afford in NJ (and not even yet, lol, still waiting it out to save more $$). But the association fees can be ridiculous and it scares me a bit to have that and the taxes constantly rising at a higher rate than my salary....

I looked at condos in Canal Pointe, off Rt. 1....there are some in there for around $270k, but have taxes at around $8-9000!!! That, my friend, is INSANE.

 

You should consider moving to FL, $270K will buy you an NICE house here.

 

I've been in my condo since 2004 and my condo fee has only gone up ~6% in the three years here.

 

Yeah, along with hurricanes . Seriously though, I've tried moving away from here, but can't find a job. What area are you in and what companies are there?

Oh, and one thing to ask about is if home insurance is covered in your fees. In the one place I looked, it was covered with the association fees. I'm not sure if that's the norm, but it's good because it takes care of another expense.

 

Merge with the thread in H&G?

 

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!

 

Market-dependent (here in urban Los Angeles, new condos are running $550,000 up), so check with your agent, if you have one.

However, the negotiating/wiggle room on new construction is usually in the upgrades, e.g. wood flooring that would otherwise cost you $10,000 instead of $6K off the sales price. The developer gets discounts on appliances and material that buyers cannot approach.

Anything that is a fixture or finish can be upgraded-- countertops, doors, faucets, carpeting/flooring, lighting, appliances, yard landscaping-- as can wiring, if rooms aren't all fully wired. The developer will likely have upgrade packages listed in the brochures, too. G/L!

 

for $270k move to houston and get a lavish house..

 

Thanks for the insight!

 

Mods?

 

You should have bought mine. It was nicely set up. And a little less than $270K. I sold it at $245K, about $10K less than we purchased it for a year ago. My taxes were about $4400 a year.

My association fees went up about 10% right after we purchased. It was still a bit lower than some places. And depending on where you live some of the fees can cover some of the water rates. That's usually a bit of a help.

 

Ideas for buying condos in FL, experience comes from purchasing units and financing hundreds of them.

Decide on location in the building. Floor, views, balcony, corner, inside, etc.
Typically first floors are better in a non-elevated building, also cooler in the summer but louder. Decide which building you want to be in as well. Try to be further away from the road if the community allows. Remember that while you are buying this for yourself right now, you want to be able to resell as you will only be there 3-5 years.

Upgrade as much as you can to pimp it out as it will help resale plus you will like it that much more.

Negotiate as builders are looking to move inventory especially in Fl.

If you got questions, hit me up.