You have discovered that your current home is too big for you. You are seriously considering downsizing to a condo. But is this a good investment idea for you? Are There Any Unusual Fees Associated With Buying A Condo That You Should Know About? We will try to answer those questions (and more) in this article.
Whether a condo is a good investment for you or not depends on a few factors. One is the price of the unit compared to other similar properties in the same area. Another is the current real estate market; particularly when it comes to the sale of condominiums. If you buy a condo when the condo real estate market is booming, you will pay a much higher price for it. So if you have to sell it later and the market has crashed, you probably have to sell it for a lot less money than you paid for it. Obviously, that is NOT a good scenario for you. One downside associated with investing in condos is that if other units in the same complex become foreclosed; even if YOURS does NOT, YOUR unit’s value will keep going down. Not; This is not fair, but unfortunately it is a fact that you should know.
Another factor involved in determining whether investing in a condo is a good idea is the specific complex itself. Where it is located, the value of other condos in that complex, its proximity to shopping centers and employment opportunities. Also, if that particular complex is well maintained and has a great reputation in HOA / resident relations. If the complex HOA board is known to be difficult to deal with, you may want to avoid buying a condo there. Instead, move to another complex where the relationship between the residents and the HOA board is much better. You will be able to find those places. You do NOT have to endure unnecessary hardship.
Some of the reasons you might want to avoid investing in a condo rather than a smaller home have more to do with the complex Board of Trustees (the Homeowners Association we just talked about). They may include prohibiting unmarried couples from living together in your complex. Others have strict policies against renting your condo to other people. In any dispute, the HOA has power and you DO NOT. So if they decide they want to fine you, there is nothing you can do about it. Then, if you don’t pay the penalty, they can put a lien on your unit and / or even foreclose.
So what if you have difficult neighbors? You may have good neighbors, but not necessarily a given. In most condo complexes there is a mix. Some neighbors are nice while others complain about everything they see. Not only can they make your life a nightmare, but if you want to sell or rent it, they can be a huge impediment. Be sure to check the neighbors in your condo complex before investing in a unit there.
