Three kinds of owners

Condo corporations consist of owners who have three different views on how the property should be maintained. Know which of the following three groups is in the majority at any condo where you are thinking of buying a unit.

1. We want to maintain the building

Maintain the building and and grounds to its original standard over the long term. We plan to live here indefinitely and set the fees accordingly.

2. We plan to sell
We plan to sell in the next two to five years. We are only interested in "curb appeal" to get the highest possible selling price. Low fees means it's easer for us to sell so keep the fees low and only spend money on the:
1. Lobby
2. Hallways
3. Front landscaping and driveway.

3. We want low fees
We want the monthly fees to be set as low as possible and kept there. As long as the lights are on, we have hot water and the elevators work, we are content. Not much else is important to us. Don't talk to us about the long-term because we don't care about the long-term.

The low-income owners, fixed-income seniors and the mom and pop "investors-landlords" fall into this category.

This is so important
As a potential buyer, you need to know which of three groups make up the majority of the owners. You also need to know which group controls the majority on the board of directors.

If you want to buy for the long-term, stay away from condos where the low-fee owners and "investor-landlords" make up the majority of owners.

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