Buying into a Brand-New Community
There are a few additional things you'll want to be on the lookout for if you are considering buying a condo in a brand-new complex. Again, be certain that the new complex you are interested in is not located in an already saturated neighborhood. When the time comes, it may be difficult to sell, and the value of your unit could drop over the years.
Another major consideration is maintenance fees. Developers sometimes lowball maintenance charges initially, not only to attract buyers but also because at that stage they do not know exactly what maintenance will cost each owner.
The builder may guarantee no maintenance fee for two years, but how will you know what those charges will be at the end of that time and whether you can afford them? While there are no guarantees, you might check the maintenance fees at similar condo communities in the same town or county.
Ask at what point the developer will turn over the community to unit owners. If he holds on to too many unsold units for too long, the condo association cannot become an independent entity. If he continues to own more than a few condos after the turnover to residents, he can still influence the board of directors, with his voice being far louder than that of the individual unit owners.
Recreational facilities are almost always the last part of a complex to be constructed. Sometimes things happen that keep the developer from getting around to them. Are you sure this builder will put in the pool he mentioned? Will you have to pay a special fee for its use?
That happens sometimes to buyers who think their monthly maintenance fee covers the use of the pool, tennis courts, and even the clubhouse (for parties and so forth). Then they are hit with a $500 annual fee to join a “club” so they can use those facilities. There is nothing illegal about this fee, but naturally, you will want to know it exists before you commit yourself to buying.
