5 Tips for Buying a Minneapolis Condo
Minneapolis Real Estate
Buying a Minneapolis condo can be very different than buying a single family home and it's important to know the difference before you get started as there are a lot of options when buying Minneapolis real estate and you'll want to know what suits you best. One of the most important items to understand and the major difference between a condo and single family home is that condo ownership consists of the air space inside the individual units and the additional, or common spaces, are jointly owned by the individual owners in the form of a Home Owners Association that also establishes rules of operation for the building. Now that we've got that cleared up let's take a look at 5 things to consider when buying a Minneapolis condo.
1. Define what your intended use of the property is going to be in the short-term and any additional possible uses for it down the road. One thing to consider, as I mentioned above, is that there will be a HOA (Home Owners Association) that set's rules on if rentals are allowed and how many. If they don't allow rentals and you aren't sure you'll be there for more than, say, one year then you'll want to feel okay about selling quickly as renting wouldn't be an option. Single family homes don't have that restriction though you may have to deal with city permits.
2. Understanding the costs of ownership. Back to the HOA, you will pay monthly (sometimes yearly) association dues that vary widely from building to building. On the low end in Minneapolis you could pay about $.25/sqft to $.45/sqft on the highend. With that cost you'll want to know what's included as this will vary as well. Some pay for cable, concierge etc. and some cover very little, just the basics.
3. Hmmmm...okay we have another HOA related item to consider. How STRONG is the association? What we mean by that is what kind of reserves do they have? If they don't have much or break even every month on what they collect then if something goes wrong with the building you might get hit with an expensive and unexpected assessment as you are part owner of the common spaces. Also, consider how many homes are currently rentals and if there are restrictions. Restrictions on rentals can be a positive as you'll have more home owners residing in the building and, in theory, a more vested group residents.
4. Consider what the parking considerations are. You might be okay with street parking or maybe you don't even have a car if you are buying a downtown Minneapolis condo and are comfortable with public transportation or using the cities Hour Car. Think, from a resale perspective, what the parking could mean for the future buyer of your condo. If parking isn't included make sure that factors into the offer.
5. Construction! While condo living can be great and offers a lot awesome benefits you don't get with single family housing (as I write this Minneapolis just got 12" of snow...the HOA hires someone for that!) you will have shared walls with your neighbors. Do they have dogs? Are you sensitive to sound? Think about these things and what's right for you. Personally, I like some of the sound that comes from living in a populated urban area.
These are a few things to consider when shopping for your Minneapolis condo.
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