Really should You Invest in Condos?

in General Discussion edited January 2014

The American dream would be to have two children, a automobile plus a household with a white picket fence. Condos don't have white picket fences. Condos have in no way produced an inroad like a substitution for a home in fulfilling the American aspiration. Let me count the methods that condos are not a good investment.

Purpose 1

The goal marketplace for a apartment is both recent school graduates which are single or elderly retirees that wouldn't like to preserve a lawn. How major the these two demographics as being a percentage in the population guarantees that there will in no way be a high demand for condos. A apartment suits the needs of a extremely small piece in the American population. The brand new graduates that buy a condominium constantly wish to trade-up to your household within a few years immediately after getting raises in their jobs. Once they trade-up to a home they'll by no means drive to own a different condo.

Reason 2

Condos are only a glorified apartment complex. Quite handful of people today need to spend 30 decades of their lives residing in an atmosphere wherever there is somebody residing above, below, right and to the left of you. Neighbors who play music too loud or who cook with no shortage of spices make the allure of possessing a rental quite unappealing.

Explanation 3

Condos also have the negative of having a shared physical exercise room. To find a way to perform out you will need to stroll to this workout space and possibly wait till somebody finishes site so as to the equipment. Should you owned a home, you could walk to another location room and function out instantly. This really is one more drawback of proudly owning a condominium.

Purpose 4

Condos have month-to-month association fees that you have to pay. These fees cover the maintenance to the outdoors of the building, the typical areas and for maintenance. There's a simple board that oversees the condo association. This board can have the authority to dictate what shades you are in a position to probably paint your unit or no make any difference whether you can setup a Christmas tree or whether you can have a plant on your balcony. A good deal of men and women find these restrictions coupled using the outrageous price enough to discourage them from proudly owning a rental.

Explanation 5

Condos have traditional experienced a very much reduce selling price appreciation than houses. In market place declines the asking cost of condos decrease a lot far more quickly than houses. Nobody desires to invest six figures in a site to reside only to find out the value of the property has not greater five decades later. Individuals would a lot rather invest in some thing that will value and condos hardly ever match this requirement.
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