10 Signs You're Buying The Wrong Luxury Condo
1. Outrageously excessive amenities
With what you’re paying for a luxury condo, it’s only right to expect well-appointed facilities like clean, well-equipped gyms and clean swimming pools. But pet spas, concierge services, champagne chambers and other such amenities are already superfluous. Unless you’re a member of the top 1% with more money than you know what to do with, you would not want to be paying for these things that have no lasting value and are completely unnecessary.
2. City planning department woes
So you’re planning to invest in a luxury condo, but somebody told you that the developer of the building is having trouble with the city’s planning department. There is usually a good reason for such problems. In such scenarios, the project will be delayed at the very least and canceled at the worst. Either way, you won’t be getting the best value for your money.
3. Great building, bad location
Someone is selling a luxury condo in a building that promises to be the best thing that ever happened to real estate, and you’re thinking about buying. But take a closer look at the location first. Remember, it’s the neighborhood that makes the luxury condo—any home, really—and not the other way around. If the site is nowhere near your standards, whatever they may be, then take it as a sign you’re about to buy the wrong luxury condo.
4. HOA fee extremes
Let’s say you’re buying a luxury condo in a building with a homeowners association already in place. Look at the fees, and be wary if they’re either too high or too low. Unusually low fees could mean the HOA is not collecting an amount that would be enough to pay for the amenities. Astronomical HOA fees, on the other hand, could indicate that there could be financial deficits, and the HOA is trying to cover for them.
5. Construction defects
Sure, developers usually construct luxury condos using the best materials, and with impeccable workmanship at that. But when the sliding glass door often gets stuck, or when the rain penetrates through the windows, you might want to rethink your plan to buy.
6. Age restrictions
The idea of peaceful and quiet living is fine, but the age restrictions that some luxury condo buildings implement are simply outrageous. If you have a child, then don’t waste any time checking out luxury condos with age restrictions.
7. Other restrictions unacceptable to you
Many people who buy luxury condos are only doing it as an investment. But if you’re planning to live in it, you better get a hold of a copy of the HOA’s rules and decide whether you can live with them. If not, then you are definitely buying the wrong condo.
8. Sales are slow
Any good luxury condo project should be able to sell itself. But when developers are starting to offer sky-high commissions and huge incentives for realtors, it’s usually a sign of slow sales. Your alarm bells should be ringing if buyers are steering clear of supposedly awesome luxury condo projects.
9. HOA monopoly
Members of any HOA are entitled to one vote per unit. But what if some members own multiple units? That means they get more votes, and therefore more control over the voting about any HOA-related issue. So before you buy that luxury condo, ask how many members own multiple units first.
10. The price is too good to be true.
When you’re being sold a luxury condo at a price that’s far below its market value, your Spider-sense should be tingling. When it seems to be too good to be true, it usually is. There is something wrong with that condo, and you wouldn’t want to find out about it after you’ve signed the papers, would you? Luxury condos are significant investments, so keep your eyes peeled for any of the signs mentioned above for your own good.