Orange County condos are at very affordable price right now, and some even say they have reached bottom. Seems like buying a condo is a great investment opportunity even if you don't plan to live in it. But before you jump into buying a condo, there's 10 questions you should know the answer to, ask yourself or find out about:
1. How much are the monthly condo fees and what does it go towards?
2. What are the specific rules of the condominium?
3. How much is in capital reserves and how much gets funded every year?
4. Any contemplated or pending special assessment or legal stuff happening?
5. How is the association managed: professionally or self?
6. Is it legible for FHA or VHA funds?
7. How many of the units are lived in by their actual owners?
8. What's the condominium fee delinquency rate?
9. Do you actually own certain common areas such as porches, decks, storage spaces and parking spaces, or are they use rights?
10. The master insurance policy, what does it cover?
You should also request the meeting minutes from the last few associations and board meetings. You can determine what people are complaining about in the complex as well as any pending problems. Check the budget/association reports to see the pattern of special assessments. This will give you some idea how often they need to assess for repairs, upgrades, etc. If there is some kind of long-term plans, scrutinize these carefully. If the building needs major upgrades, see if there are sufficient reserves for these, or be prepared to face special assessments.
If you pay attention to all of this items, your new condo to call home should be an enjoyable one.