One concern when buying a high-end apartment is if it will retain its resale value over the years. That's because you do not have complete control over a unit in a larger building, and things out of its control can impact its value. You must look at things such as maintenance and amenities to figure out if the unit will maintain its value over the years or be worth less than what you paid for.
It's common for a large building to spend money on a major repair. This can include new windows, a new roof, or tuckpointing. Most repairs come out of a general maintenance fund for the building, which is paid for by your monthly HOA fees. However, owners are required to pay their fair share for bigger repairs when there is not money in reserve to pay for it.
Look into the HOA board meeting notes before purchasing a high-end apartment. You'll want to find out if there are any upcoming repairs that could require a special assessment, and how well the building has been managing money based on the size of their cash reserves. This can give you a good idea about what to expect once you move into the building.
Owner Occupancy Ratings
While high-end apartments typically have the owners living in them, it is not always the case. It is possible that many units are being subleased and occupied someone that does not own the unit. The problem with renters is that they typically don't care about the building in the same way that owners do, or are less considerate of the noise they are making within their unit.
You should always ask about owner occupancy ratings before buying a high-end apartment, and be cautious of buildings that have many renters. If you plan on staying in the building for a long time, it is nice to know if the neighbors will be rotating in and out or are there to stay.
A main selling point for many high-end apartments is the view. If you are high up in a building, it is easy to get people interested in the unit if it has a nice view compared to the other units. You'll want to do some research and find out if there are high-rises that could be built next to your building, which would block your view once construction is finished.Share