Top 4 Reasons Not to Buy a Condo

By Raymond Stoklosa · February 16th, 2009

San Mateo Condos

In Friday’s post I discussed the top 5 reasons to buy a condo. For some, condominium ownership can be an excellent investment with an enjoyable lifestyle, yet for others the condominium lifestyle imposes intolerable restrictions and regulations. Here are four reasons a person may choose not to buy a condominium:

Majority Rule. The rules of the Homeowner’s Association (also known as the HOA) called CC&R’s (Covenents, Conditions and Restrictions) govern how the association operates. Typically each unit owner has voting rights corresponding to their proportionate value. Voting is by majority rule so if the issue voted upon is to put in a new roof, do some exterior painting, or resurface the drive ways, majority rules. If the majority is in favor of these repairs and you voted against them, you will still be obligated to pay your allocated cost. If ownership by consensus is not something you can tolerate, a condominium is not the right choice. Incidentally, the number one reason clients come to me to sell their condo is because they can no longer tolerate the Homeowner’s Association.
Proximity to Neighbors. The architectural nature of a condominium dictates certain closeness to your neighbors. If you desire space and separation and/or a yard and fences, a condominium will not offer those amenities. Even in complexes with buildings that have only one common wall, close proximity to neighbors and lack of privacy can be a deal breaker.
Restrictions. The CC&R’s will dictate what you may or may not be allowed to do with and around you unit. Typically restrictions include prohibitions on making automobile repairs in your garage or on the driveway, hanging wet laundry on the balcony, installing a ham radio antenna, storing debris on the patio and type and number of pets you are allowed to name a few. If you aren’t the type of person who can live with these types of restrictions, condos are certainly not the right choice for you.
Special Assessments. HOA’s have a legal duty to prepare and collect for future repairs and maintenance, usually through HOA fees. Money must be placed in a reserve account in anticipation of future expenditures. When repairs are needed and money on hand is not sufficient to cover the costs, it must be generated by a special assessment from the homeowners. Even if you do not have the money to pay for your share of the special assessment when the time comes you will still be required to put in your share.

For the right person with a compatible lifestyle, condominiums are an excellent choice. Before you buy a condo, make sure you know all of the restrictions imposed by the complex and then decide if it is the right choice for you.

Want to Learn More About Buying a Condo in San Mateo CA? Why Not Take a Class?

In our monthly San Mateo home buyer seminar series, we will be presenting, Steps to Buying Townhomes and Condos in San Mateo County, on Tuesday November 3rd, 2009 from 7-9pm in San Mateo. For more information, visit our Steps to Buying Townhomes and Condos in San Mateo County page. To sign up for this free program, call (650) 655-2500 or fill out the form below.