Already on ArticleSlash?

Forgot your password? Sign Up

Buying a Condominium Beware of the Risks

 


Visitors: 740

Buying a condominium can be a very risky decision. Any condominium is vulnerable to depreciation that can be caused by other condominium owners within the building. Today many investors that have bought condominiums couple of years ago are finding themselves to owe more for the mortgage than the condominiums are worth leading them to abandon their investment properties. However, this leaves the surrounding condominiums to feel the side effects. In areas such as Miami and Las Vegas builders are leaving the preconstruction sites or investment properties. Now imagine yourself being in a building that has couple apartments being foreclosed within its building. There is a high supply of condominiums in your apartment building, but little demand for them. This leads to fast depreciation of your condominium.

There are also other problems with surrounding condominiums being foreclosed. Those owners are not paying the association fees prior to foreclosure, and once the unit is foreclosed it is even harder to get those association fees. Not having the association fees paid can lead to two results. First, there are not enough funds to support maintenance and repairs of the building, this leads to deterioration of the building and further decreases the value of the building. Second, the assessment fees can be raised to compensate for those condominiums that have bee foreclosed and are not paying their association fees. However, this leads your condominium to cost you more, and also leads to the depreciation of the property.

As with any financial decision, try to learn as much as possible before jumping on board.

For more information about Condominiums , visit the popular blog at http://newinfopost.com/realestate/condominiums .

(282)

Article Source:


 
Rate this Article: 
 
Beware of Hazardous Ingredients When Buying a Skin Care Product
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Beware of Six Financial Risks in China

by: Face Zhang (June 06, 2008) 
(Business/International Business)

Gout Symptom Risks - Nine Indicators of Gout to Beware

by: Sable Woods (June 12, 2008) 
(Health and Fitness/Arthritis)

Flip Property to Beware Of When Buying

by: Chet Holcomb (January 15, 2007) 
(Real Estate)

Beware of Buying Property in a Bubble

by: Jack S. Blacksmith (July 07, 2008) 
(Real Estate/Buying)

Buying a Used Car Risks to Avoid

by: Derek Hudson (July 02, 2008) 
(Automotive)

Smokers Should Beware of Buying E-Cigarettes From Overseas

by: Donald Crabtree (October 02, 2011) 
(Health and Fitness/Quit Smoking)

The Risks of Buying Penny Stocks

by: Omar L. Caban (August 07, 2008) 
(Investing/Stocks)

Risks of Buying World of Warcraft Gold

by: Chan Peng Joon (June 13, 2007) 
(Computers and Technology/Games)

Beware Of The High Street Lender When It Comes To Buying Unemployment Insurance

by: Simon Lance Burgess (July 14, 2007) 
(Insurance)

Beware of Hazardous Ingredients When Buying a Skin Care Product

by: Diana E. Rubio (July 10, 2008) 
(Health and Fitness/Skin Care)