Should You Invest in Condos?8303182
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 ways that condos are not a great investment.
Purpose 1
The target market for a condo is either recent college graduates that are single or elderly retirees that don't 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 buy a condo usually want to trade-up to a house in a couple of years after getting raises in their jobs. Once they trade-up to a house they will never want to personal an additional condo.
Reason 2
Condos are absolutely nothing more than a glorified apartment complicated. Very couple of people want to spend 30 years of their lives living in an environment exactly where there is somebody living above, beneath, 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 getting a shared exercise room. If you want to work out you have to stroll 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 next room and work out immediately. This is an additional drawback of owning a condo.
Purpose 4
Condos have month-to-month association fees that you are needed to spend. These charges 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 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.
Purpose 5
Condos have traditional experienced a much lower price appreciation than houses. In market declines the price of condos decrease much much more rapidly than houses. Nobody 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 rarely fit this requirement.
