I'm in a middle of the hot Boston market. Live in a 24 unit building that is 50% owner occupied. I won 2 units now (live in one) and have an opportunity to buy a third. This would raise my percentage ownership over the 10% mark making the association unwarrantable. Condos are selling like hot cakes with plenty of cash offers and going 20-30% above asking. I am concerned on impact on owner neighbors and myself when I decide to sell one of the 3 units in a couple of years maybe. Would love to hear thoughts supporting or not supporting my buying decision.
You always hear this but I have never seen it be an issue.
I got a loan on an rental condo several years ago in a 19 unit building where I believe there were 2 different owners that had 2 places (and none of those were owner occupied) so they both were over 10%. I also have loans in places that have less than 10 units so by definition everyone owns more than 10%.
This one always seems like a weak "rule" that seems easy enough to explain away especially in smaller projects.
How close are you to the 50% owner occupied limit though? THAT is a big deal and if you go past that mark financing will get very difficult for anyone buying into the place and for any current owners that try to refinance.
Thanks Shaun. We are exactly at 50% and my purchase will not change that since unit is currently rented.
Another thing Shaun, in the 2 examples that you stated, there is no issue actually. The new condo guidelines state that in properties that are 5-20 units, any owner can own 2 units. However over 20 condos buildings any owner can not own more than 10%. I fit in this category!
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