Checklist for the purchase of the condominium

Real estate has always been considered the most popular pension plan of the people because where better to enjoy retirement than in your own home? In times of financial crises, over-indebtedness and economic downturn, this trend is even intensified. Have a look at before you read any further.

Whether as an investment or retirement home a property guarantees return and security alike. However, a lot of money can be set in the sand, namely, if you are not clear before the acquisition, which purpose the property is to serve and what you have to consider during the purchase process.

Even if a whole house is not purchased when buying a condominium, the price for this type of property, depending on the location, remains quite high and the acquisition process is extensive.

  • Because not only the apartment is acquired
  • But also part of the property and the house.

Community ownership is managed by the homeowners’ community, which is the total number of homeowners, who also have to set up maintenance reserves to finance repair or remediation of community property.

  • Also the annual economic plan,
  • The annual statement and
  • Any special charges are the responsibility of the owner community.

Although, as a rule, an administrator is used for these tasks, the purchase of a home not only offers many advantages but also comprehensive duties. Here’s what you should know when buying a condo.

Purpose of buying real estate

There are several reasons for buying a condo. Therefore, before taking money, one should be aware of the purpose of the apartment because renting and own use results in different requirements.

It is therefore important to note in the purpose that a condominium whether as a retirement home or as an investment object entails a long-term commitment. Therefore, think ahead and not only by current standards.

Condominium for own use

Especially if an apartment is to be purchased for personal use, a long-term planning and accurate examination of the object of purchase is extremely important. It must be clear that size, location, layout and the number of rooms also meet future requirements.

So if the family planning is not finished, you better invest in a room more. The location is also crucial. While younger owners prefer more central locations, older people often prefer to go to the outskirts of town. Therefore, also consider where you want to live later.

Condominium as an investment

In the search for a suitable investment property, private investors have never had it easy. Real estate finance rates are currently very low, while rents in cities continue to climb higher. The fast money lures. But beware: Especially in the large and university cities, condominiums in prime locations are as good as unattainable for private investors. Although such apartments guarantee a high letting rate even in times of crisis, they are also very expensive and can therefore hardly be financed privately. In addition, tenants of higher-value properties usually have a high standard, which is reflected in maintenance and repair costs. And if these concern the community property, the owners’ meeting decides about it, even if individual owners just cannot handle these costs. Thus, higher reserves must be formed. High monthly rent is therefore not synonymous with high returns.