Old vs. New Construction

As you look for an investment property that is suitable for your situation you will most likely be looking at both old and new condo units. While both types of properties can make sound investments there are some issues that you should be wary of.

Older Units

Because a condo unit is aging does not necessarily mean that it will be more maintenance than a brand new unit. However, there are specific things that you should investigate before purchasing an older unit:

Common Areas

Take time to observe the common areas of your condo unit. As a condo unit owner you will be responsible to pay monthly association fees to the condo association. If there are common areas that need repairing (i.e. leaking roof) you may be liable for an additional assessment fee even if the problem doesn’t directly affect your unit.

Your Condo Unit

Even though a condo unit may appear to be well maintained and up to your area's building codes you should hire a professional inspector to thoroughly check the unit. Older buildings can be riddled with problems like mold and asbestos that may not be visible to the untrained eye. A simple inspection to insure that the unit is up to code can prevent you from taking unnecessary losses on your investment.

New Units

Buying a new condo is not always as simple and carefree as we would all like to think. Although buying a new condo generally avoids most maintenance problems there are things you can do before purchasing a new condo to insure that it will be a sound investment.

The Developer’s History

Take some time to research the project developers past condo developments.

Buying a new condo is not always as simple and carefree as we would all like to think. Although buying a new condo generally avoids most maintenance problems there are things you can do before purchasing a new condo to insure that it will be a sound investment.