There’s always a lot to think about when looking for a new place to live, but when it comes to buying a condo in Minneapolis, additional factors may come into play that aren’t necessarily associated with buying a detached single-family home.
Historically, the condo market has been much more unpredictable than the market for a traditional single-family home, which is precisely why you need consider these important elements when conducting a search:
What are the reserves of a building or complex?
The last thing you want as a new condo owner is to face big special assessments. If the building needs a new roof or major updates to satisfy new codes and there’s no money available for these fixes, it’s on the owners to pay for whatever costs are necessary to get the job done. A poorly financed building will also lead to eventual wear-and-tear and a general run-down look and feel, ultimately dropping your unit’s re-sale value as well.
Low HOA fees aren’t always a good thing
If a Minneapolis condo building has rock bottom monthly fees, it should raise some eyebrows. As alluded to above, you want your building to be in the best financial shape possible to avoid big special assessments down the road. While ultra-low monthly fees may seem good on the surface, they could lead to more trouble down the road.
Be weary of a building with lots of renters
Renters inside a building aren’t a bad thing, and being able to rent out your unit should your circumstances change is what you want. But when a building has too many renters, it often leads to much more wear-and-tear on the building. Simply put, owner-occupants tend to care more about the building and will treat common areas with more respect. A renter has nothing invested in the building, so think twice before buying into a building with a high proportion of short-term residents.