When is best time to buy a high-rise property?
Buying a high-rise property is a decision not to be taken lightly since so many different components are important to piece together.
Do your research and understand what makes high-rise living unique.
Paige Martin, broker associate at Keller Williams Memorial, said that the buying process is different when considering a high-rise.
“It’s important to consider the neighborhood, the building, the HOA and the unit itself. If you look at Houston condo resale trends over the past decade, there is a strong correlation between the strength and health of the building and the ability for units to resell well. In addition, there’s a strong negative correlation between large monthly HOA fees and resale trends,” Martin said.
Potential buyers can research HoustonProperties.com’s list of the “Best Houston Luxury CondosLuxury Condos That Have Been The Best Investments” and also qualities to look for if property searching. These range from buying in a building with a good sales history, buying in line with a building’s median sales price, and owning in a building that fits your lifestyle and goals.
Mike Mahlstedt, Houston Association of Realtors board member and a Realtor with Heritage Texas Properties, said buyers need to realize they are purchasing a fraction ownership of a building instead of a home.
Investigate the rules and restrictions of properties since these are set in place before a building is built and units are sold, he said.
“Some of the things that could affect a future homeowner are pet restrictions; amount of control you have for inside and outside your unit, such as your balcony; the cost of HOA fees and the risk of assessments; parking rules; guest access; and the risk of noise beside, above and below you,” Mahlstedt said.
Another important item to be aware of is the percentage of owner occupancy for the property.
“Without this owner occupancy restriction, it could cause issues down the line with resale if too many units have turned into rentals. A lot of lenders won’t lend on a unit with a building that has over a certain percentage of owner occupancy. It changes the dynamic of the building,” Mahlstedt said.
Don’t overlook one of the most important deciding factors, which is buying into a new building versus an older one.
Mahlstedt added that older buildings are more established with predictability in services, resale values and features, but if a major repair arises, so do the HOA fees with assessments for residents. New-construction properties, which haven’t had a chance to establish their personality and feel, also have to be evaluated by the buyer for quality, bylaws and restrictions.
Right now, Houston has numerous choices available, Martin said.
“Over the last 18 months, luxury condos ($500,000 and up) have been in a buyer’s market,” Martin said. “This is because of all the new construction inventory that is coming on the market, and has dampened the sales trends of Houston’s older buildings.
“We typically see seasonality come into play in the $1M+ condo market, as many owners and buyers are traveling for the summer. This time of year is usually a great time to be a condo buyer.”