Updated over 2 years ago on . Most recent reply
Condo vs SFH
What are some of the advantages of buying a condo instead of SFH for LTR? I understand condos doesn't appreciate and might have high HOA.
Most Popular Reply
Richard F.
#1 Tenant Screening Contributor
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
Aloha,
It is critical to review the Governing Documents for the project you are planning to make an offer in. These documents will inform you of the rules that are currently in place, including restrictions on rentals if any; House Rules for all Residents; and a variety of other issues that are relevant. They will also describe exactly what specific elements of the individual condo you would be responsible for as an Owner, vs. what the HOA is responsible for. You also need to obtain, review, and get an understanding of the most recent year end financial reports, and the current year operating budget and reserve funding plan. In particular, the reserve funding plan will give you an indication of the TRUE financial condition of the HOA as a whole. Failure to get an understanding of this plan can very easily result in "unexpected" Special Assessments or dramatic increase in HOA fees.
Check to see if there is a local chapter of the Community Association Institute in your area, and join up if you are serious about condos. They are a fantastic resource of Regional information that is highly relevant to anyone that Owns or is a Board Member in a HOA.
It is critical to review the Governing Documents for the project you are planning to make an offer in. These documents will inform you of the rules that are currently in place, including restrictions on rentals if any; House Rules for all Residents; and a variety of other issues that are relevant. They will also describe exactly what specific elements of the individual condo you would be responsible for as an Owner, vs. what the HOA is responsible for. You also need to obtain, review, and get an understanding of the most recent year end financial reports, and the current year operating budget and reserve funding plan. In particular, the reserve funding plan will give you an indication of the TRUE financial condition of the HOA as a whole. Failure to get an understanding of this plan can very easily result in "unexpected" Special Assessments or dramatic increase in HOA fees.
Check to see if there is a local chapter of the Community Association Institute in your area, and join up if you are serious about condos. They are a fantastic resource of Regional information that is highly relevant to anyone that Owns or is a Board Member in a HOA.