Five Questions You Should Ask When Buying A Condo In The LBI Real Estate Market
LBI Real Estate Condo QuestionsLong Beach Island Condos
Condos can offer a great opportunity to buy a home in the LBI NJ real estate market. Condos range in size and price range. There are small one bedroom units that will sell for under $200,000 and there are large, oceanfront condos that sell over $1,000,000. While there are a number of different options available in the LBI real estate condo market, there are a few similarities shared by all condos…and asking these LBI Real Estate Condo Questions can help you decide which unit is best for you!
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LBI Real Estate Condo Questions
There are five LBI Real Estate Condo Questions you should always ask when looking to buy a condo on Long Beach Island. They are:
- What are the rules?
- What is covered?
- How many units are rental units and how many are owner occupied?
- Is the association solvent?
- Who is in charge of the association?
It is important to understand the rules of the condo association. Condo rules are similar to the old story of Goldilocks and The Three Bears. Just like one porridge was too hot and another too cold, if there are too many rules in place, your time will not be enjoyable. Likewise, if there are too few rules in place, the association runs the risk of getting into trouble. The trick is to find an association with the right number of rules and freedom to ensure a well run and enjoyable experience.
Understanding what is covered in the monthly HOA fee is also very important. In the wake of Hurricane Sandy, flood insurance is a big question on everyone’s mind. Most LBI real estate condo buyers are surprised to find that flood insurance IS usually included in the monthly dues. While every association is different, most HOA dues will cover liability insurance, flood insurance, a small reserve for unexpected emergencies and general upkeep of the complex. Owners will be responsible for personal insurance on the interior of their unit.
If you are thinking of using a mortgage to help buy a condo, it is very important to know how many units are rental properties and how many are owner occupied. If more than 50% of the units in a condo association are rentals, the complex may be considered to be an investment property. This can have a dramatic impact on interest rates and financing terms. With rentals being so common in the Long Beach Island real estate market, condo buyers have to be on the alert for this situation.
Checking to make sure the association can pay the bills may seem commonsense, but it is easy to overlook during a LBI real estate condo transaction. It is important to check and see that there is a reserve for unexpected repairs, especially in larger complexes. The last thing a buyer needs is to find they have to pay an extra assessment on top of buying a unit!
Lastly, all buyers should know who is in charge of the association. Is it another unit owner or a professional management company? A management company can offer the appearance of “better” management but at a higher cost. A individual owner who also runs the association may be more approachable, but the other unit owners have a responsibility to make the job is being done well!
Buying a condo in the LBI real estate market has pros and cons. Condos offer a lower price point compared to a comparable single family home and may have access to common amenities but condos will often carry restrictions which all buyers must adhere to. Like any transaction in the LBI real estate market, it is important to understand all aspects of the home purchase so if you have any questions, please do not hesitate to send me a message!
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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