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Old 11-23-2014, 07:35 PM
 
29,422 posts, read 22,323,817 times
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Not sure where to put this thread, but in doing 'research' on condos, I see a common theme that condos are a bad idea as an investment.

But what about if one wanted to purchase a condo solely to live in?

The reason why I ask is because I was recently renting and living in a condo unit, and it was one of the best places I've ever lived in. Very quiet, considerate neighbors, good and safe area, etc.

For the amount I was paying in rent, I could purchase such a unit and pay a lot less (with a good down payment minus the monthly HOA fees).

I can't afford a house, but I could afford a condo. Whether it increased in value or not over the long term isn't my primary concern.

Any thoughts?
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Old 11-23-2014, 08:56 PM
 
Location: Florida
7,213 posts, read 6,985,167 times
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One of the issues with them, that my in-laws had happen, is that certain expenses are not in your control. The condo board can vote in any number of expenses and raise the monthly rate to cover them and you just have to suck it up.

My in-laws lived in a golfing community and their fees went, in part, to the upkeep of the course. The board voted to gut 9 of the holes and restructure the course. This came with a 200% increase in their fees. They spent almost two years trying to sell the place, and when they did it was at a huge loss.
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Old 11-23-2014, 08:58 PM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,105 posts, read 80,174,082 times
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If you only care about a place to live, a condo can be cost effective since you will still get back much or even more than your investment when you sell. They just don't appreciate as fast as a house. What will get you, though, is the HOA fees. With those you can end up paying way more than renting over time. Some condos are a great investment, if you buy it to rent out and use only for vacations. The rentals make you money while covering the mortgage. For example, in places like Hawaii or Lake Tahoe. You still need a place to live, though.
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Old 11-23-2014, 09:09 PM
 
6,497 posts, read 11,770,612 times
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I love my condo, bought it on '93, intend to die here. Like you, I'm not concerned about rise in value, resale, etc. I'm lucky in that the board does work on keeping our fees reasonable. Luckily, our treasurer is a tightwad.

It's great for me because I'm not one to do yard maintenance or any other kind of exterior maintenance... the board handles that. I had my patio paved, any and all plants are potted, so no getting on my knees to weed, no lawn mower to haul out.

If I could buy a house to live in, I wouldn't.
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Old 11-23-2014, 10:28 PM
 
Location: Out there somewhere...a traveling man.
44,545 posts, read 61,229,694 times
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OP you'd probably get more opinions by posting in the Real Estate threads.
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Old 11-23-2014, 10:32 PM
 
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i lived in a condo for 10 years and it was fantastic. i think if you're planning on staying long term, it's a great investment. also, my HOA fees were $260 and covered water/sewage/garbage. that probably would cost $150 in a house. considering that and the fact they cover all outdoor maintenance and pool, i thought it was a good deal.
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Old 11-24-2014, 03:46 AM
 
Location: Westwood, MA
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Like all things it depends. A condo in the city here goes up in value faster than a SFH in the suburbs (well, most suburbs at least). Real estate investment is a tricky game and I suspect most people should focus on a place to live rather than thinking of their home as an investment.
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Old 11-24-2014, 07:41 AM
 
4,538 posts, read 6,408,009 times
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A condo in once circumstanc is a particularly great investment. If you are buying a second home or vacation property in a flood zone.

Single family non-primary homeowners in a flood zone pay very high flood insurance. In the condo you are under the Associaton policy for most flood related damage. Usually not contents. But that could save you 2-5k a year.
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Old 11-24-2014, 08:08 AM
 
Location: Port Charlotte
3,930 posts, read 6,398,119 times
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It will depend. Some projects will not qualify for 'secondary loan sale' (very high rental occupancy, no viable HOA, etc) which can complicate both the purchase and resale.

Yes, the HOA can really affect the marketability of a unit.

Just do your research, and that means get a historical sales run of homes in the development as well as listings, and be sure to look at withdrawals as well.
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Old 11-24-2014, 08:55 AM
 
Location: City Data Land
17,156 posts, read 12,860,679 times
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Quote:
Originally Posted by kab0906 View Post
One of the issues with them, that my in-laws had happen, is that certain expenses are not in your control.The condo board can vote in any number of expenses and raise the monthly rate to cover them and you just have to suck it up.

My in-laws lived in a golfing community and their fees went, in part, to the upkeep of the course. The board voted to gut 9 of the holes and restructure the course. This came with a 200% increase in their fees. They spent almost two years trying to sell the place, and when they did it was at a huge loss.
And therein lies the rub. Thus your your condo payment ends up being a roll of the dice. Since many people are on a limited income, that can be an issue, whether they plan on reselling the unit in the future or not.
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