Should You Invest in Condos?6739010
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 ways that condos are not a good investment.
Reason 1
The target market for a condo is either recent 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 by no means be a high demand for condos. A condo fits the needs of a very small piece of the American population. The new graduates that buy a condo usually want to trade-up to a house in a few years after obtaining raises in their jobs. Once they trade-up to a house they will never want to own another condo.
Purpose 2
Condos are absolutely nothing more than a glorified apartment complicated. Extremely few people 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.
Purpose 3
Condos also have the negative of getting a shared physical exercise room. If you want to work out you have to stroll to this exercise room and possibly wait until somebody finishes in order to use the equipment. 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.
Purpose 4
Condos have monthly association charges that you are needed 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 people 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 reduce price appreciation than houses. In market declines the price of condos decrease a lot more rapidly than houses. No one desires 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 some thing that will appreciate and condos seldom fit this requirement.
