Should You Invest in Condos?5187534
The American dream is to have two kids, 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 do not want to preserve a lawn. The size of these two demographics as a percentage of the population guarantees that there will never be a high demand for condos. A condo fits the needs of a extremely small piece of the American population. The new graduates that purchase a condo usually want to trade-up to a house in a couple of years following getting raises in their jobs. Once they trade-up to a house they will by no means desire to personal another condo.
Reason 2
Condos are absolutely nothing more than a glorified apartment complicated. Extremely couple of individuals want to spend 30 years of their lives living in an atmosphere where there is somebody living above, beneath, to the right and to the left of you. Neighbors who play music as well loud or who cook with lots of spices make the allure of owning a condo extremely unappealing.
Reason 3
Condos also have the negative of getting a shared physical exercise room. If you want to work out you have to walk to this physical exercise room and possibly wait until somebody finishes in order to use the equipment. If you owned a house, you could walk to the subsequent room and work out instantly. This is another drawback of owning a condo.
Reason 4
Condos have month-to-month association charges that you are needed to pay. These fees cover the maintenance to the exterior of the building, the typical areas 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 you can setup a Christmas tree or whether 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.
Reason 5
Condos have conventional skilled a much lower price appreciation than houses. In market declines the cost of condos reduce a lot much more quickly than houses. No one wants to invest six figures in a place to live only to find out the worth of the property has not increased five years later. People would a lot rather invest in something that will appreciate and condos seldom fit this requirement.
