Should You Invest in Condos?6932241
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.
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 by no means 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 always want to trade-up to a house in a couple of years after obtaining raises in their jobs. Once they trade-up to a house they will never want to personal an additional condo.
Condos are absolutely nothing much more than a glorified apartment complicated. Extremely few individuals want to spend 30 years of their lives living in an environment exactly 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 very unappealing.
Condos also have the negative of having a shared physical exercise room. If you want to work out you have to walk to this physical exercise room and possibly wait till somebody finishes in order to use the gear. If you owned a house, you could stroll to the next room and work out instantly. This is an additional drawback of owning a condo.
Condos have monthly association charges that you are needed to spend. These fees 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 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.
Condos have traditional experienced a much lower price appreciation than houses. In market declines the price of condos decrease a lot more quickly than houses. Nobody wants to invest six figures in a place to live only to find out the worth of the property has not elevated 5 years later. People would much rather invest in something that will appreciate and condos rarely fit this requirement.