The Skinny on Condos

There are 1,134 condos, town homes or patio homes in Maricopa County right now that are at least 2 bedroom, 2 bath and under $100,000!

That is astounding. There are about 171 in Central Phoenix (depending on your definition of “Central”). About 75 of those are under $60,000. 34 are under $40,000.

This is a huge number of properties that are really quite affordable and convenient.

The principle and interest on a $100,000 condo is about $511 per month. Add primary mortgage insurance to that and you are at about $600 per month. If you tailor your search to only those with HOA fees under $200, then you are getting a two bedroom, two bath place for about $800 per month!

As we are still in a low market, you are in a great position to recoup those costs when you sell! Sit on it for a couple years and make it a rental down the road. You have a lot of options with a condo. All of them are better than giving money to a landlord!

What to watch out for

According to my lender contacts, there are several things that you need to be aware of, unless you are buying cash:

1) Lenders require 60% owner occupancy.

2) No more than 15% of HOA residents can be delinquent in their dues.

3) One person or company cannot own more than 10% of the units.

4) The HOA cannot be in litigation.

5) You need at least 15% down to get private mortgage insurance.

But here is the good news about that. These criteria are a great way to weed out the wheat from the chaff. Let’s do the research and we can still find condos that meet these requirements. If they do, then they are more likely to be a good investment or home.

Call me at 602-456-9388 for more information.

Postscript –lots of new condos in the $140,000 to $190,000 range are also a great deal. especially if they were renovations, such as Pierre on 6th and Landmark. They are already FHA qualified, but not selling as quickly as the investors would like and we might be able to bargain them down.