Should You Invest in Condos?9147654
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.
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 never 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 few years following getting raises in their jobs. As soon as they trade-up to a house they will never want to personal an additional condo.
Condos are nothing much more than a glorified apartment complicated. Very couple of individuals want to invest 30 years of their lives living in an atmosphere 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 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 subsequent room and work out instantly. This is an additional drawback of owning a condo.
Condos have monthly association fees that you are required to pay. These fees 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 or not you can setup a Christmas tree or whether 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 conventional skilled a a lot lower price appreciation than houses. In market declines the price of condos decrease much more quickly than houses. No one wants to invest six figures in a location to live only to find out the worth of the property has not elevated five years later. Individuals would much rather invest in something that will appreciate and condos rarely fit this requirement.