Aquatic Gardens, 621 Elysian Fields, Easy Walk to a World of ColorApril 27, 2017
Jazz in the Park, Armstrong Park Spring of 2017May 3, 2017
Condo Dollar Reserves
” Money in the Bank “
Money for Suprises and Future Fixes
Many if not all associations include in their monthly condo fees contributions to futures fixes and inot a reserve account. All lenders who will do convention loans want to see 10% of the budget in teserves. If the budget for the year is $500,000 then they want to see at least $50,000 in reserves.
The lenders want to see reserves if certain owners do not pay their monthly fees. Then there will be money to pay for insurance and upkeep.
The smart condo associations want to save money for future projects such as a new roof, waterproofing, painting, and repairs that they know are coming up over time. Things wear out over time. If suprise repairs come up they will have money in the bank to repair damages quickly. Having a large reserve fund is a plus.
The way to review these reserves is to ask lender or seller to let you review the budget during the inspection process. Many time if sales are few and far between,I ask the lender to send questionaire to the association to check out the budget and reserves.
Many of the larger condo associations in the Warehouse District and on St. Charles Avenue collet two month of condo fees from new buyers to put in reserves. The seller gets no return of reserves. It is another way for the condo association to build up the reserves.
Condo Knowledge and Experience,
Eric and Patti Know….