New Condos

Buying a condo is not like buying a single family dwelling unit. When you buy a condo you become a co-owner of the entire property and you will be responsible for a portion of the maintenance cost. For that reason you want to ask a lot of questions before you buy into a project. Here's a tip to help you along.

Ask the condo association representative to provide you the amount of the annual gross operating receipts of the complex. Then inquire as to what the reserve fund total is. If there's no reserve fund immediately head for the door. You don't want buy into such a development. If there is a reserve fund the amount should be 3-5% of the total annual gross operating budget. This may be larger for more luxurious developments. If the reserve isn't between 3-5% of the operating budget consider heading for the door unless there are special circumstances to justify the lesser amount.