Condo investments have been on the rise lately with many people opting for them as one of the real estate channels. Condos just like other investments will have good returns if they are managed well. It is therefore important to know the kind of mistakes that have been made by other condo investors so that you can avoid getting in the same kind of trap. Every good investment should be managed well and there should be no point where the costs are higher than the returns. Some of the common mistakes that are made by condo investors that you should avoid include:
Trusting the floor plan
It is common for condo investors to trust the floor plan of the condo when it has been advertised and many of them don’t go ahead to try and confirm. Most of the time advertisers will exaggerate the size of the floor so as to attract buyers quickly but when you follow up you may find the size is smaller than what was advertised. It is therefore important to do due diligence and confirm that the floor plan is as advertised.
Lack of a lawyer
As much as you may go ahead to buy a new condo without the need of a lawyer, a lawyer is very important as the purchase involves the signing of a legally binding agreement which may need legal representation. The good thing of having a lawyer is that they will help you understand deeper the terms of the sale and will help you avoid being a victim of silly mistakes. Since the lawyer will be present as a witness, they will be able to stand by you in case of anything. For Peter & Adelaide Condos, it comes with its set of lawyers which saves you the stress of looking for a lawyer.
As much as delays may be bound to happen, it should have a good explanation with t. When you are getting a new-build condo, it should have all the terms so that if a certain deadline is missed you are legible for compensation from the company. In some case, the companies making the condos may delay so much and that may be an inconvenience for you.
Lack of warranty
It is easy for condo investors to ignore the warranty part thinking they will not need it. There is also a case of condo investors assuming that they will get provincial warranty which is not normally the case. It is only in Quebec, Ontario and BC that one can get provincial warranty. It is therefore important for condo investors to make sure that they get a warranty for their condo and also confirm that the builder of their condo is registers with the provincial regulator of the relevant province as a home builder.
Hidden closing costs
Normally, upon signing the purchase agreement of the new place you are given closing costs in estimates which are bound to escalate as you head towards the possession date. It is important for the condo buyer to be keen on the costs and ask for a cap when it comes to others to avoid paying high hidden costs.