Is it OK to buy old condos?
If you see that a given neighbourhood has recently been developing fast and is likely to become a prized one, you should consider buying a new condo there if prices are still reasonable. If not, you are still better off buying an old condo in that same area instead of a new one in a deteriorating neighbourhood.
Are older condos a good investment?
The answer is no. You should not buy an older condo for investment. You should always buy new pre-construction condos when you’re buying for investment. You don’t have a lot of units that are trading, first of all, so you can’t really make definitive statements like this that you should buy old condo buildings.
What happens when condos get too old?
Old condos, especially higher rise buildings, will be plagued with increasing high maintenance cost as buliding age. Eventually, just the maintenance cost will rise to exceed cost of renting similar unit in newer building, at which point condo ceases to have any real value.
Do old condos appreciate in value?
If they are well maintained (common areas updated, plumbing, wiring, healthy financials…) and in a great local market, sure they will appreciate.
Why is it harder to sell condos?
In a nutshell, condos are harder to sell right now primarily because they are harder to buy than houses or townhomes due to financing restrictions.
Why is it harder to buy a condo?
Condos are usually less expensive than single-family homes and have lower maintenance requirements, making them good options for homebuyers on a budget or people looking to downsize. Loans can be harder to get for a condo because some lenders have strict requirements regarding owner occupancy and loan-to-value ratios.
Are interest rates higher on condos?
Both the down payment and interest rate on a condo mortgage will be higher than they would for a regular house at the same price. Lenders charge more for loans on condo units because their value depends on more than just the borrower’s financials.
What kind of loan do you need for a condo?
First-time buyers often look to loans backed by the Federal Housing Administration (FHA) because they have relaxed credit requirements and require down payments as low as 3.5% of the purchase price. In order to secure an FHA loan to purchase a condo, however, the condo you are purchase must be FHA-approved.
What is a good credit score to buy a condo?
You’ll need a credit score of at least 580 to qualify for the program’s lowest 3.5% down payment. When you’re looking for condos, use the condominium search tool offered by the U.S. Department of Housing and Urban Development (HUD) to see if the project is approved, or has been submitted for approval.
How hard is it to get a loan for a condo?
Getting a mortgage for a condo is generally harder than getting a mortgage for a house. A condo unit is part of a multi-unit development, so the borrower’s finances are intertwined with others — and lenders see this type of home as a riskier investment.