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Im in the seattle area, most 2 bedroom apartments in the suburbs cost around 800 a month. I saw online that there are a bunch of condos from the same community go on sale, most of them are going for 35k, which is really low because a comparable unit to rent is already 800 a month.
is there maybe some catch to that low of a price?
what else is the monthly cost? from what i can think of, if i own it outright, i would need to budget:
HOA due- 300
Electricity- 100
Insurance- 100
Prop tax- 100
So it comes out to 600 a month, better than renting, if i own it outright.
I have heard of some condos asking people outright to pay 50k each unit to fix the roof, parking lot, lights, or whatever comes up.
> An assessment or an increase in fees is always possible. Investigation of the community reduces but does not eliminate the possibility of surprises. If it's a big assessment then financing may be necessary. Same thing if you own a house- unexpected repairs may be needed.
> Property tax may be paid for through the fees.
> Insurance could be less than you think because you aren't insuring the building, the association is.
Im in the seattle area, most 2 bedroom apartments in the suburbs cost around 800 a month. I saw online that there are a bunch of condos from the same community go on sale, most of them are going for 35k, which is really low because a comparable unit to rent is already 800 a month.
is there maybe some catch to that low of a price?
what else is the monthly cost? from what i can think of, if i own it outright, i would need to budget:
HOA due- 300
Electricity- 100
Insurance- 100
Prop tax- 100
So it comes out to 600 a month, better than renting, if i own it outright.
I have heard of some condos asking people outright to pay 50k each unit to fix the roof, parking lot, lights, or whatever comes up.
Are those numbers right? A 2 bedroom condo can be BOUGHT for $35k?
And the monthly association fee on that $35k condo is $300?
That points to something other than a standard condo ownership. Check to see if it's a co op.
I guess another possibility might be that it's a low or moderate income housing property, where the prices are limited. The extremely high HOA fee makes that seem, to me at least, less likely.
Are those numbers right? A 2 bedroom condo can be BOUGHT for $35k?
And the monthly association fee on that $35k condo is $300?
That points to something other than a standard condo ownership. Check to see if it's a co op.
I guess another possibility might be that it's a low or moderate income housing property, where the prices are limited. The extremely high HOA fee makes that seem, to me at least, less likely.
the 300 HOA is my rough guess, I have a friend that lives in a 2 bedroom condo in the same town that is paying 260 a month.
yes, the condo is for 35k, and within the same community/complex, there was 4 others with the same price, and 3 are sold at 36k, 40k, and 37k.
My friends condo and the condos around that area are ususally 100k for a 2 bedroom.
It seems too good to be true, thats why im thinking that there might be a huge catch to it, dont know why so many people would be selling it at the same time for so little money compared to the market here.
I own a condo in Dallas- my property taxes are 3X what you're estimating, my insurance is half, and my dues are 2X (but include all utilities). So check your estimates for your local market as they vary widely.
The biggest downfall to condos is the potential for mandatory assessments. Make sure you have a real estate attorney who specializes in condos/HOA's do a through scrub of the association- how are their reserve levels, how has the building been maintained, is there deferred maintenance that may be needed soon, who is on the board and what is their relationship to the building (owner occupant, investor, etc), who is the property manager and what is their reputation, how is the HOA's credit rating, etc.
Assessments are necessary when maintenance is needed and there is not enough in the reserves to cover it. If it's a mid rise or high rise, everything is more expensive to fix. My building had to spend about $1M to replace 50 year old elevators. I got a bill for $10k, 50% due in 30 days notice, and the balance due 60 and 90 days out. We knew the expense would be needed at some point, but I honestly estimated my share at $3-4k, not $10k. But 20-something floor building with 3 elevators....
If you do not pay HOA dues or assessments on time, the HOA can foreclose on your unit.
the 300 HOA is my rough guess, I have a friend that lives in a 2 bedroom condo in the same town that is paying 260 a month.
yes, the condo is for 35k, and within the same community/complex, there was 4 others with the same price, and 3 are sold at 36k, 40k, and 37k.
My friends condo and the condos around that area are ususally 100k for a 2 bedroom.
It seems too good to be true, thats why im thinking that there might be a huge catch to it, dont know why so many people would be selling it at the same time for so little money compared to the market here.
If other condos in the area are selling for 2-3X what this complex is, there is a catch. Based on what I've seen in my market, values can drop drastically when an assessment is in place. Owners who need to sell basically have to drop down to "fire sale" prices in order to get a buyer to sign up for a hefty assessment.
Of course, you'd want to find out the story on this place/ maybe it's impossible to get financing due to an open lawsuit, maybe there are upcoming repairs needed and owners are dumping prior to an assessment, who knows?
I own a condo in Dallas- my property taxes are 3X what you're estimating, my insurance is half, and my dues are 2X (but include all utilities). So check your estimates for your local market as they vary widely.
The biggest downfall to condos is the potential for mandatory assessments. Make sure you have a real estate attorney who specializes in condos/HOA's do a through scrub of the association- how are their reserve levels, how has the building been maintained, is there deferred maintenance that may be needed soon, who is on the board and what is their relationship to the building (owner occupant, investor, etc), who is the property manager and what is their reputation, how is the HOA's credit rating, etc.
Assessments are necessary when maintenance is needed and there is not enough in the reserves to cover it. If it's a mid rise or high rise, everything is more expensive to fix. My building had to spend about $1M to replace 50 year old elevators. I got a bill for $10k, 50% due in 30 days notice, and the balance due 60 and 90 days out. We knew the expense would be needed at some point, but I honestly estimated my share at $3-4k, not $10k. But 20-something floor building with 3 elevators....
If you do not pay HOA dues or assessments on time, the HOA can foreclose on your unit.
Wow 10k! man its scary to live in a condo then.
It seems like there is a catch. On Zillow, I just checked, all of the units are zestimated at 130k. they are all the same sq footage, just different units at the same complex being sold at the low prices and still a few thats on sale and not sold yet, for a low low price of 35k .
If you're going to get a mortgage, don't forget that monthly payment. And would you have to pay an extra monthly fee for a parking spot?
No fee for parking, its a suburb of seattle. the mortgage thing, I would need to get one, but i'm just doing the math since if I rented a 2 bedroom apartment in the same area, it will cost 800 a month, while this super cheap condo is up for grabs at 1/3 of the cost.
Again, to keep this in perspective (when we are talking about owning properties, not renting)
>The biggest downfall to condos is the potential for mandatory assessments.
SAME STORY if you own a house. It's pretty much mandatory if the roof needs to be replaced, or the furnace,...
> Wow 10k! man its scary to live in a condo then.
More correctly- it's scary to own property, as opposed to renting.
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