Quote:
Originally Posted by Ahuch
I would argue that they are both important. I have a rental condo (that I used to live in) and there is going to be a lot of new rental competition on the market in the next few years, something to keep in mind.
There's also special assessment insurance on Condo Insurance nowadays which could mitigate some of your friends losses in that example.
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I think you have to worry more about the things you can control. You don't have to buy a condo but if you do, make sure your offer reflects the value you want to gain when you buy.
The rental market is totally out of your control. If you're only renting one unit you are sort of out of the big market anyway. But things change and that market may look very different in a year. You'll always do better buying desirable real estate in desirable areas so general real estate savvy sort of trumps specific rental data.
Condo insurance sort of maybe covers some assessments depending on a number of conditions. But the reality is, it doesn't cover the effect on the future value of your unit. Not too many people are willing to pay top buck for buildings with large assessments in their past. At least the short term sellability is very much affected by special assessments. It also makes it harder to get loss insurance when there is a history of assessments.