Are condos a good investment?
I feel condominiums can and are good places to live, however I do not feel in general they are the best investment one can make regarding real estate. I have lived in a condominium for over 12 years and am not an old person, nor do I sit around all day being negative (as I see one of the authors here feels most condo owners and dwellers are). Even people in town homes and single family homes can do that. Hey life is what you make it no matter where you choose to live.
Most people choose to buy a condominium because they are more affordable than single family homes. Some people do not want nor need a single family home, nor do they want to purchase rental property and be a landlord, for various reasons. Also the property taxes on many condos can be less expensive than those of a single family home. IF they are well managed and have an attentive , knowledgeable, caring board or association, they are wonderful places to live. I have found that there are many poor conversions (apartment buildings converted to condominiums) and newer developments with many problems such as owners of new developments not willing or refusing to turn control of buildings and associations over to the condo associations, board members stealing from reserve accounts, laundry proceeds etc! Often monthly assessments are not paid by some or many owners in a complex, fines nor fees are not paid!
There may be a high rate of renting in a building or a group of condo buildings! The main reason people cannot afford a single family home is that they cannot afford the down payment, high property taxes, upkeep, etc, of a single family home and a condo or town home it seems to me are the best choices for young, middle aged and older people these days.
Renters often have less respect and concern for their own and other people's property and can be roudy, doing damge to a building and illegally subletting a unit, changing the locks without persmition or notification to the owner, sell and or use drugs from a unit. There will always be good and bad owners and renters and in my persional experience of 16 years in a condo, many renters do not care what goes on around them, thinking that they can leave when trouble happens and can up and leave when they want to, rather than addressing the problems faced by other inhabitants.
Often the lawns, gardens, interiors and exteriors of condoes and not well maintained (known as common areas) and there is poor communication between owners, renters, management and board members making the accommodation not very nice places to live. Poorly maintained units with fire risks and leaks go unreported, undealt with and I personally live in an area with many high ride condo buildings and these are only a few of the problems which are known with this kind of dwelling.Here are come great buildings though often the management is more loyal to their board than they are to people who live in the condos. There is a glut of condos on the market and it can be difficult to sell a condo, moreso than to sell a single family home. Some can be good investments, though in general for the reasons already stated, condos are not the best investment that a person can make.They are a good alternative to those people who cannot or does not want to own an apartment or a home but wants, none the less, to become a property owner. It is wise to check out the area, and to talk with tenants to esablish whether a condo is a good investment, using common sense to guide you and research of the area in question which will help you to make a wise decision.
