If you are retiring soon and have decided to check out lofts for sale in downtown Los Angeles, then there are some special considerations for this type of real estate purchase that you need to keep in mind. While condo living can be an excellent housing option for retirement, you need to be sure that you understand all of the various additional costs and issues that come with condominium ownership.
Here are some tips for high-rise downtown condominium buying to help you make the best choice to suit your needs:
Tip: Review the Condo Association's CC&Rs
Every condominium association has a document known as the CC&Rs. The acronym CC&R stands for the Declaration of Covenants, Conditions, and Restrictions. The association's CC&Rs are a detailed description of the rules, regulations, and costs associated with owning and living in a condo in the building. For example, if you want to have a pet or sublet your new condo for the summer, then the CC&R document covers these issues and lays out what you can and cannot do with your condo.
Tip: Review the Condo Association's Financial Statement Before Buying
Before you make a purchase offer on a retirement condominium, you first must review the condo association's financial statement. The financial statement will show you if the other condo owners have been paying their assessments and if there are enough funds to cover necessary major repairs without issuing special assessments.
Tip: Understand that You Might Have Extra Assessments to Pay in the Future
Since your condominium high-rise building is owned by all of the various condo owners, you will all be liable for the costs associated with making major repairs. While your condo association should have money in reserve for these costs, sometimes repairs will exceed the reserve fund and you will get a bill to pay for your portion of a repair. This bill is known as a special assessment. For buildings that develop a major structural problem or another major issue, special assessments can be thousands of dollars. For this reason, you need to make sure that you have enough savings to cover this type of condo expense.
Tip: Hire a Real Estate Agent Familiar with the High-Rise Condo Buildings in Your Area
Finally, since each high-rise condominium building has its own benefits and drawbacks that you might not be aware of, hiring a local real estate agent who is familiar with each building will be a great asset for you.