The Importance of Evaluating the Rate of Owner-Occupied Units When Buying a Condo

If you would like to purchase a condo to move into, you can enjoy maintenance-free living and a lot of other great benefits, but there are certain things you should look for in the condo you buy. One of these things is finding a condo that is in a community that has a high percentage of owner-occupied units. This is something you probably would never think about, but it is very important. Here are a few things to understand about the percentage of owner-occupied units in a condo community.

What does owner-occupied mean?

When you view a condo community, there will be homes there that are lived in by people who own their condos. These homes are owner-occupied units. There will likely be other homes in this same community where the people living in them are not the owner. Instead, they are tenants renting the units. These are not owner-occupied units. There may also be vacant units. These are the three categories you will find as you browse through condo communities, and the most important thing to find out is the percentage of units that are owner-occupied.

Why does this matter?

There are several key reasons that you should investigate the percentage of owner-occupied units, and the first is for resale value. People who own their own homes tend to provide better care for these units, and this is one of the leading factors that helps keep the resale value of these homes at a good rate. When units are rented out, the resale value of the homes may decrease, simply because a tenant will not usually provide the same care for a home as an owner will.

The other important reason to look into this is for loan purposes. If you need a loan to buy the condo you choose, you may experience problems finding a lender that will issue you a loan if the rate of owner-occupied units is too low. While the percentage that lenders look for varies, you can typically get a loan without too much trouble if the rate is at least 51%. This would mean that just over half the units are lived in by the owners.

Evaluating the owner-occupied rate of a condo community is just one of the important steps you should take as you begin looking for a condo to purchase. If you would like to learn about other important steps, talk to a real estate agent about condos for sale.