Should You Invest in Condos?4617036
The American dream is to have two children, a car and a house with a white picket fence. Condos don't have white picket fences. Condos have by no means made an inroad as a substitution for a house in fulfilling the American dream. Let me count the methods that condos are not a good investment.
Purpose 1
The target market for a condo is either current college graduates that are single or elderly retirees that don't want to maintain a lawn. The size of these two demographics as a percentage of the population guarantees that there will by no means be a high demand for condos. A condo fits the needs of a very small piece of the American population. The new graduates that purchase a condo always want to trade-up to a house in a couple of years after getting raises in their jobs. As soon as they trade-up to a house they will never desire to own another condo.
Reason 2
Condos are absolutely nothing more than a glorified apartment complex. Very couple of individuals want to invest 30 years of their lives living in an atmosphere exactly where there is somebody living above, beneath, to the right and to the left of you. Neighbors who play music too loud or who cook with lots of spices make the allure of owning a condo extremely unappealing.
Purpose 3
Condos also have the negative of getting a shared exercise room. If you want to work out you have to walk to this exercise room and possibly wait until somebody finishes in order to use the equipment. If you owned a house, you could walk to the next room and work out immediately. This is another drawback of owning a condo.
Purpose 4
Condos have month-to-month association fees that you are required to spend. These charges cover the maintenance to the exterior of the building, the typical locations and for maintenance. There is a board that oversees the condo association. This board can have the authority to dictate what colors you can possibly paint your unit or whether or not or not you can setup a Christmas tree or whether or not or not you can have a plant on your balcony. Many people find these restrictions coupled with the outrageous fee enough to discourage them from owning a condo.
Purpose 5
Condos have conventional experienced a a lot reduce price appreciation than houses. In market declines the price of condos reduce much much more quickly than houses. Nobody desires to invest six figures in a place to live only to find out the worth of the property has not elevated five years later. People would a lot rather invest in some thing that will appreciate and condos rarely match this requirement.
