The Complete Guide to Purchasing a Condo, Townhouse, or Apartment: What Smart Investors Need to Know - Explained Simply
While many of the steps in buying a home are the same as buying a condominium, townhouse, or apartment, there are many critical differences. This new book offers a complete overview of these special, usually smaller, residences. These units can be good options for first-time home buyers, for those who want a vacation getaway, investors, and those who want to downsize their living space. These housing units are usually less expensive than a single family home and can include attractive amenities. In purchasing one of these units there will be a lot of people to deal with, from realtors to condo boards, attorneys, and bankers. There is a ton of paperwork with terms and vocabulary that read like a foreign language. In this new book you will find vital information and great strategies for finding the home you want faster and feeling confident about the purchase. You will learn to avoid some of the most prevalent — and potentially dangerous and expensive — mistakes made by others.
The book covers the entire, unique process of buying one of these shared living houses in an easy-to-understand way, pointing out dozens of hints and suggestion as to what to look for as well as demonstrating the many mistakes common with these types of investments.
You will learn how to find the best opportunities, to negotiate, finance, budget, handle pre-construction issues, set values, and make the offer. You will be able to define what you are buying (and what you are not) issues on your right to sell, lease, or mortgage. You will be prepared for restrictions pertaining to children, pets, parking, vehicles, boats, music, maintenance of windows, doors, screens, air conditioners, plumbing, club memberships, recreation facility leases, use of recreational facilities, and common areas. In addition, you will learn the advantages of using credit reports, home warranties, insurance, creative financing, closing procedures, moving plans, closing and settlement inspections, and certain legal contracts. You will have instruction in obtaining mortgages — which government agencies can help, considerations for veterans, IRA use, hiring an attorney, calculating monthly payments, and establishing an escrow account. The real estate and mortgage glossaries alone are invaluable resources, even for the “old hand” at property acquisition.
This is a great book - watch out, even if you think a condo/co-op or apartment is not for you, this book may teach you otherwise!
My review:
As the baby boomer generation ages, more and more retired couples will be looking to sell their houses and make the move into a condominium or town home. This book focuses on the “shared housing” market (ie, condo, town home, apartment, co-op) and why it can be a great choice for retirees, busy professionals or young families, as well as an excellent investment tool for those looking to expand their portfolios.
Susan Smith Alvis has a considerable background in real estate and the shared housing arena and she puts her knowledge and experience to good use in this very informative and readable book. Touching on the simple (the difference between a condo and a town home) and the more complex (how an investor can find a niche market in apartment or condo real estate), she covers both the advantages and disadvantages of shared housing.
Benefits of purchasing a shared housing unit include, for instance, having a swimming pool, waterfront view or exceptional location which may not be available or affordable with a standard home. However, Alvis also realistically addresses some of the sticking points shared housing brings and that should be taken into consideration by potential buyers. She stresses the importance of researching the homeowners’ association in the building, the board of directors and any condo fees, dues and special assessments that may regularly impact owners. She advocates potential buyers to do their homework before buying and provides plenty of avenues to explore to get accurate information before making a decision. As well, the book is quite up front about the “culture shock” of shared housing and what to expect during your first few months in a unit.
Concerning the actual purchase of a shared housing unit, the book guides you through the steps of viewing properties and negotiating a good deal with the seller or developer. Alvis also details creative financing methods (she has written another book specifically on this topic and I would advise anyone that is looking to finance outside of a conventional loan to read it) and encourages those who are not 100% certain of shared housing to try renting or lease-purchase options first. While Alvis is certainly pro-shared housing, she does emphasize that it is not the perfect option for everyone
A notable aspect of this book is that it gives equal attention to those looking to purchase shared housing as a primary residence as well as those who might be purchasing units or buildings as an investment. An interesting idea that Alvis also brings up is purchasing a shared housing unit as a vacation get away – whether for yourself or for renting out to other vacationers. Again, with shared housing, you get a lot of bang for your buck with locations and amenities that are attractive and much more affordable than you would get with a conventional home.
Alvis’ comprehensive indexes include a checklist for going through complexes and units in preparation for buying, good locations to invest in for vacation rentals, sample association bylaws, a sample engineering/inspection report and financial charts with amortizations tables to help you determine how much you can afford (including those easily forgotten condo fees!). The very broad glossary is useful for anyone involved in real estate (not just shared housing), even for those who just want to sign those papers and move into their new home!
Overall, this book is definitely a resource you should have if you are even remotely considering purchasing some type of shared housing. It is comprehensive, easy to read, balanced and full of tips and tricks. On a side note, a portion of the proceeds of this book are being donated to the Humane Society of the United States in memory of the publisher’s “vice president of sunshine” so when you purchase this book, you can feel doubly good about it.
Comment by LM Cepluch — October 9, 2007 @ 4:22 pm
Buying a home is a serious investment, and more and more people are turning to shared housing. The Complete Guide to Purchasing a Condo, Townhouse, or Apartment provides the know-how you need to approach shared housing responsibly. Perhaps the best thing about this book, besides its thorough analysis of the subject matter, is its style. Alvis writes as a friend who is there to look after your interests. You even get the feeling she’d like to hear from you, to see how your investment turned out.
Alvis warns, “be sure you know what you are buying!” This might sound obvious, but unless you’re thoroughly familiar with the details of shared housing, you could be surprised. Alvis admirably lays out those details in an easy-to-read and enjoyable format. Her book is full of useful tips on all aspects of shared housing, including buying and maintaining your shared housing, as well as enjoying your communal living experience. There’s even a highly informative chapter on vacation getaways. The detailed discussion of lease options will prove useful to first-time buyers, while the shared housing questionnaire will be useful to anyone willing to take shared housing seriously.
If you are considering shared housing, this book is sure to help focus and direct you towards the right decisions.
Comment by Jason Streitfeld — October 30, 2007 @ 7:31 am
Review: “Purchasing a Condo, Townhouse, or Apartment”
by Susan Smith Alvis
Before buying anything huge in life, getting advice and tips from experts in their particular fields, is generally a good idea. While Susan Smith Alvis is, indeed, regarded as an expert in real estate and property buying and selling, her book, “Purchasing a Condo, Townhouse, or Apartment” is well researched, informational and helpful but redundant with those good ideas.
Each case scenario presented and accompanying informational text, as it applies specifically to the purchase of a condo, townhouse, apartment or vacation get-a-way property, reiterates the same kinds of criteria all too often for the reader’s comfort.
Criteria for the Informed Buyer
Granted, an informed buyer should be as knowledgeable as possible as to the differences in the properties described in the book, including important factors such as market trends, comparable costs and one’s emotional or gut reaction to appearance, amenities and personal needs and desires in the housing they choose. Ms. Smith Alvis does a fine job of pointing out that a buyer’s list of needs and wants might range from “party place” to its polar opposite, “one-hundred percent sound insulation.”
How Properties Differ
The book succinctly defines the differences among properties from condo ownership, coop ownership, individually owned apartments, townhouse ownership and especially informs the reader of the degree of which fees (maintenance, tax, utilities, etc.) are charged to the buyer and/or are those belonging to an internal homeowner’s association/ board of directors, city or town, etc.
Which One is Right For You?
Lifestyle choices impact one’s decision to buy into this set of properties or what is called “shared housing”—a condo, townhouse or apartment that is part of or connected to a building or complex of like units. These sections of the book, while they touch on key elements, are particularly repetitive.
The Nuts and Bolts of Buying
Important attention is given, however, to the issues of what important documents a buyer will need to see and/or produce; how buyers may finance their purchase of property with regard to recognized options; and how to negotiate a lease option with the seller and possibly plan for a re-sell or sub-let of the property, “who you should know”—agents, homeowner’s associations, attorneys, bankers and lenders, sellers and buyers. Ms. Smith Alvis also includes the advantages of buying vacation getaway property for one’s own or rental use.
She provides expert websites and a plethora of information in four appendices which include a sample Engineering Report, lengthy charts which calculate payments through 2036, the author’s biography and glossary.
Comment by Lorraine Lucciola — December 13, 2007 @ 4:51 pm
Inspect before you buy - Charlie Rose
Thinking of buying a house? With quite a few books on the market that deals with the subject, here is an A-Z guide that provides all the details you need to know before you sign on that dotted line. This handy manual examines the finer points of the inspection, not only from the basement to the attic, but does a virtual tour of the grounds to include the health of the lawn, pool, and also deals with pest infestation issues as well. It is so easy to miss some minor defects which could become major ones (costly too!) after the deal is concluded. This practical, easy-to-read guide includes a detailed checklist, and provides a formidable list of questions for the seller you’d hardly have thought of yourself! As a matter of fact, the manual is so thorough, I’d recommend you get it even if you’re thinking of selling, to gain an advantage over potential buyers, who just might have read this gem from cover to cover!
Comment by Kadene Porter — February 4, 2008 @ 2:53 pm
The Complete Guide to Purchasing a Condo, Townhouse or Apartment - Susan Smith Alvis
You would be surprised at the differences between purchasing a house and opting for a condo, apartment or townhouse! This guide totally demystifies the documents and the process, laying bare the restrictions (the plusses too!) associated with shared living. My own changing lifestyle necessitated a move from a house with all its trappings, to a townhouse complex, and at first my misgivings left me with an air of uncertainty as to what to expect. The invaluable information I found in this handy manual took me step by step through the process, covering areas I am sure would have been overlooked. Those important documents including clauses relating to disclosure statements and warranties, options and ordinances, became a lot less threatening after my virtual tour of the entire process through this exhaustive guide. I even found to my utter delight, a full amortization table based on 30 years, a glossary that simplified much of the industry terminology, sample condominium rules and regulations, and last but not least, a questionnaire that prompted me to think of issues which may have later resulted in pesky little problems. The Complete Guide was for me, a jewel of a find!
Comment by Kadene Porter — February 4, 2008 @ 2:58 pm