Should you be looking into Condos?
Using appreciation as a measure, condominiums in some areas have been as profitable an
investment as single-family homes in the past five years. And in some markets,
condos appreciated even more, according to some experts.
While single-family homes have been the preferred investment by homebuyers, changing
demographics are helping make condos more popular, especially among single homebuyers,
empty nesters and first-time buyers in high-priced markets.
Also, the condominium community has worked hard in the last few years to overcome
image problems brought on by homeowners association and developer disputes as
well as all too frequent construction-defect litigation.
As with any home purchase, you should do your homework about the neighborhood or
development before you buy. In the case of condominiums, it is important to read
the past six months of homeowners association minutes to see how effective the
board is and to learn about any possibly detracting issues (such as protracted
litigation with the developer).
The condominium community has worked hard in the last few years to overcome image
problems brought on by disputes and lawsuits. Associations are becoming more
sophisticated about property management and taking steps to prevent legal
problems and disputes.
Condominiums have held their value as an investment despite economic downturns and problems
with some associations. In fact, condos have appreciated more in the past few
years than when they first came on the scene in the late 1970s and early 1980s,
experts say.
While there are lots of reports about homeowner's association disputes and
construction-defect problems, the industry has worked hard to turn its image
around. Elected volunteers who serve on association boards are better trained at
handling complex budget and legal issues, for example, while many boards go to
great lengths to avoid the kind of protracted and expensive litigation that has
hurt resale value in the past.
Meanwhile, changing demographics are making condominiums
more attractive investments for single homebuyers, empty nesters and first-time
buyers in expensive markets.
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