Buy or not to buy? Thousands of tenants are faced with the issue when their homes are converted into condominiums. One in three would like to buy, two out of three say no, according to a survey.
If those living in your house formed a housing association and were offered to buy the property, would you like to buy your apartment? This question was asked for approximately 1,000 members of the Tenant Association.
Answers vary with age. Half of those who are 35 years or younger would like to buy their apartment, but only seventh senior citizens. It also depends on where you live.
Metropolitan people are more positive than those in smaller towns. Those who rent private wards are more incubator than those living in municipal housing companies.
The issue is becoming more and more current. Only in the metropolitan areas, over 52,000 tenants have been homeowners in the 21st century and many new transformations are under way.
Profitability is also the main reason for those who want to buy their apartments. But such reasons do not matter to many. Many say it’s a good investment, but if you do not want to move you will not win and we do not live here to make money.
The second heaviest reason in the survey, that you get more influence over the accommodation, is also not so important to them. Even as a tenant you can do much for the interior if you want – and you do not have to take care of the property. “We do not have much contact with the neighbors, and I do not feel attracted to weekend weekends and to go out and hang out,” said one person in the survey.
– Are there any people who think that they are going to make a lot of themselves, or will they buy the services?
There are many question marks. Many are doubtful, but not sure that they are saying no.
“If the price is good and people know what they’re talking about, maybe we’ll buy,” says one tenant.
“You buy not only your apartment, but your and your neighbors’ house, along with them. The shared responsibility can imply both opportunities and problems, “says consumer counselor Margaret Shapiro.
She is responsible for housing issues in a new condo association, where many rental rights have been converted into condominiums. She has had contact with many who are reluctant to buy or have had problems after a conversion.
Margaret Shapiro thinks it is important not just to think about the economy, but also on what neighbors one has.
– Is there any competence within the association to own and manage a house? A lot of members are required: to be able to run a board, to have legal, financial, management, procurement and so on. And you will have time and will and be able to get along.
One should ask if you want to own your house and basically start a management company with your neighbors.
For example, if the roof needs renovation, do you have the same view of when and how to do it?
– A common conflict of interest is that the younger think more short-term. They want to make money and move on, while the elderly want to invest more in the long run. Therefore, it is important to read all information, attend all meetings and ask questions.
Those who work for a conversion may not have the same management ideas as you. The bank can help review the association and your finances. “You need a different economic buffer than if you rent,” says Margaret Shapiro.
Facts: Think about before you do buy
- Do I want to own and manage a property with my neighbors?
- Should major renovations, tribal swaps or similar be needed, and if so, can I stay in the meantime or arrange an evacuation apartment myself?
- Do I manage the economy? Bring all the documentation to the bank, ask for an assessment and cost of living.
- Do I have an economic buffer, maybe $ 20,000, if anything in the apartment breaks?
- Can I manage to stay if I get sick or unemployed?
- Will the apartment be sold if I want to move
- Do I want to be a tenant of my neighbors if I do not buy?
Most common reasons not to buy:
- Do not get loan 3%
- Does not like the apartment 5%
- Does not like the situation 5%
- Do not want for ideological reasons 10%
- Can not afford 23%
- It is more comfortable to rent 34%
- Other reasons 19%
The most common reasons to want to buy:
- Do not want to live with the neighbors 5%
- Children and grandchildren inherit the residence 6%
- Get more influence over the accommodation 33%
- More profitable to own 46%
- Other reasons 11%