Should You Invest in Condos?7016245
The American dream is to have two kids, a car and a house with a white picket fence. Condos do not 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 ways 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 maintain 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 always want to trade-up to a house in a few years after getting raises in their jobs. As soon as they trade-up to a house they will by no means want to own another condo.
Purpose 2
Condos are absolutely nothing more than a glorified apartment complex. Extremely couple of people want to invest 30 years of their lives living in an atmosphere where there is somebody living above, below, to the correct 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.
Reason 3
Condos also have the negative of having a shared 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 gear. If you owned a house, you could stroll to the subsequent room and work out immediately. This is another drawback of owning a condo.
Purpose 4
Condos have month-to-month association charges that you are required to spend. These charges cover the maintenance to the exterior of the building, the common 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 or not you can have a plant on your balcony. Many individuals find these restrictions coupled with the outrageous fee enough to discourage them from owning a condo.
Reason 5
Condos have conventional experienced a a lot lower price appreciation than houses. In market declines the cost of condos decrease much much more quickly than houses. No one wants to invest six figures in a location to live only to find out the value of the property has not increased 5 years later. People would a lot rather invest in some thing that will appreciate and condos seldom fit this requirement.
