The questions to ask yourself for a condominium purchase
Acquiring a home in Luxembourg requires a significant investment because of the soaring prices of individual houses and building plots. Therefore, the alternative found is that of collective housing. This formula meets a growing success with many individuals. But be careful not to have bad surprises!
Another way to invest in real estate
Over the past twenty years, the rental and real estate sales markets have grown more in Luxembourg. This situation, which has led to a general rise in prices, can be explained by the uninterrupted arrival of foreigners seeking housing in urban areas. However, this new upward trend in prices has paved the way for condominium purchases.
We talk about co-ownership when a minimum of two co-owners share ownership of a building that is divided into a lot of separate units, and another batch of common areas. The formula covers many specificities, rules and uses. To avoid unpleasant surprises, it is useful to take note of the main lines of operation of the condominium, in this case the information on current and exceptional expenses that you will pay.
What to take into account?
When you want to buy a condominium, you must first learn about the details of the regulations. Ask to read all the old minutes of the general meeting. You will discover the current expenses of the condominium:
they correspond to administrative, operating and maintenance expenses. You will also find valuable information on the history of claims (fires, water damage ...), as well as any problems related to the building. All this information will allow you to assess whether this acquisition is at first sight a good deal or if, on the contrary, it could turn, in the worst case, into a financial pitfall.
Then, check if big jobs are planned in the near future (electricity, plumbing, heating, roofing ...), because even if they are limited to your thousandths, these bills can increase your budget. Also take into account all the expenses voted at the last general meetings: it may be that they are the responsibility of the buyer, as well as the work already undertaken and the payment schedules are not completed.
All these future running costs are to be included in the financing plan of your apartment. You must also read it to negotiate the purchase price of the house. Indeed, these are important arguments for lowering the price. Because when you pay several thousand euros of notary fees to acquire a condominium, it is really not easy to incur significant unplanned expenses a few months later!
The benefits of buying condominiums
There is in each co-ownership a regulation which details precisely the parts deprived or not of the building. When buying a condominium, the trustee is responsible for all the administrative procedures concerning the common parts of the building: work in the hall and corridors, replace bulbs and fire extinguishers, clean and remove garbage ... As an owner, you will not have to deal with these details and gain comfort of life. In return, you will have to pay the charges of co-ownership.
Every year, the general meeting of the co-owners meets to take the major decisions concerning the improvement of the living conditions in the co-ownership. By participating in this meeting, the new owner will have indications to increase the value of his home, which will be a positive point the day he will rent or sell his property.