How to Buy a Condo With a Down Payment

Condominiums offer amenities similar to apartments with the ownership aspects of a traditional home.

Home-ownership has long been regarded as part of the great American dream. Facets of that ideal, however, have changed over the years. Young professionals and recent retirees, for instance, often do not have the time or the desire to maintain a home. In these cases, purchasing a condominium is a good bet. Condominium associations offer property ownership along with certain amenities, such as lawn car and maintenance. You typically need a down payment to buy a condominium; however, before handing over a large sum of money, check to ensure the condominium is right for you.

Instructions

1. Ask the condominium association for copies of the code and covenants. These documents describe what the association allows its owners and renters to do. Look for a different association if you feel the restrictions are too much.

2. Review the condominium association's financial statements prior to closing. According to the Wall Street Journal, the association's budget should be solvent and at least two-thirds of it should be set aside for repairs and maintenance.

3. Talk to your potential neighbors. Try to discern the number of renters to owners and ask about any complaints they have. You may not be able to get your down payment back if the condominium turns sour; your neighbors can help ensure that you are spending your money properly.

4. Write a check for the down payment amount. Typically, you must come up with 10 to 20 percent of the total purchase price. To check average condominium costs in your area, use the link in the resources below.

References

• Wall Street Journal: Should You Buy That Condo?
• Money Central: Is a Condo a Money Pit?
• Money Under 30: How to Buy a Condo Immediately After College

Resources

• Kiplinger: Home and Condo Prices Where You Live