|
TinyBee
Stranger
Registered: 11/11/18
Posts: 361
Last seen: 2 years, 8 months
|
Buying a condo
#26903199 - 08/27/20 09:12 PM (3 years, 4 months ago) |
|
|
Hello. I might have a little bit of extra money and I have been thinking of ways to invest it/do stuff with it. One thing I really want to do is guard against inflation and I think investing in real estate could be worth it. I don't have any debts. I cannot afford a house so I have been thinking about condos.
However, I have heard that some condo buildings are having trouble finding an insurance company to insure their units. Apparently some renters have been very careless and the buildings caught fire or otherwise got into some sort of trouble with insurance companies and now the latter won't insure the former. I am just wondering how widespread this is and whether I should consider this when buying a condo (I live in Canada). If I do buy a condo but cannot find anyone willing to insure my unit, it will be a very bad thing.
What has been your experience?
Edited by TinyBee (08/27/20 09:17 PM)
|
MycoNeophyte
Stranger
Registered: 08/31/20
Posts: 1
Last seen: 3 years, 4 months
|
Re: Buying a condo [Re: TinyBee]
#26921688 - 09/06/20 06:11 PM (3 years, 4 months ago) |
|
|
Hey, Fellow Canuck here. I just purchased my first property 2 weeks ago - a townhouse condo in Burlington, ON. As you probably know, if you buy a condo you are bound not just by the terms and conditions of the agreement but also to the health of the condo board. Board operates like a business in that if they dont have funds they cant fulfill their obligations. If the condo board allows owners to make change to their unit without permits & inspections etc that's a big risk to the condo board obligations as their insurance likely will not cover the case should those changes ever cause damage to the property common elements, or other owners. You would still likely be able to get insurance for your unit (liability / contents) but common elements of your unit may not be protected should your neighbors unit collapse, flood, catch on fire, etc cause their cousin did their renovation on the cheap. You / your lawyer should look into the status of the condo corporation before deciding to buy. look at the reserve study, look at the history of the building. sometimes it can be hard / expensive to get this info but its worth considering if you smell something fishy.
Personally I only made the decision to enter the real estate market once my other investments were sufficiently diversified. as such I sat on the sidelines and waited for years before making a move on an opportunity I couldnt pass up.
My 2c, ymmv
|
budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,975
Loc: PNW
|
Re: Buying a condo [Re: TinyBee]
#27087326 - 12/13/20 01:54 PM (3 years, 1 month ago) |
|
|
Make sure to check out the HOA fee's for any condo you buy and factor that into your, is this really worth it analysis.
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
|
|