The Pros and Cons of Condo Ownership

As a former Broker I can tell you that the word "Condo" is misleading. Sometimes people think of a condo as being part of a group of homes in a big project like situation and sometimes they think of high rise buildings as in New York City. To talk about the pros and cons of ownership of Condos, we must separate the two.

I worked in Southern California and there we had many beautiful villages of condos that were relaxed and calm. We also have some really high end condos in Malibu Beach or Redondo Beach. They were essentially mini-homes connected by a common wall. They were more homes that were sold for less value than regular homes with many upgrades.

Homes vs. Condo:

You could have bought a nice 2 bedroom home for around $179,000 and a condo in a beautiful setting cost $159,000. Now when you add on the association dues, you are essentially paying the same price. The difference being the home had fewer upgrades and possibly an older kitchen and bath. The condo had more baths and newer kitchens, in some cases.

As with any apartment complex, being very close with your neighbors, there could be arguments and disagreements on children, pets and noise. If you are lucky enough to have a good neighbor, you are indeed lucky, but many do have problems. This is why an association is set up to relieve homeowners of problems. If the association is good and run fairly, then the majority of problems are alleviated.

It does seem that in high end condos in Malibu and Redondo costing above $400,000 they have less problems. High end condos in New York go for millions of dollars and they started selling them on "Time shares" So more of a vacation villa for a fraction of the amount. Pales Verdes is another up and coming place for high end condos on top of the mountain. The views are spectacular and beautiful and something many are opting for.

First Time Home Buyers:

Again, we have many pros and cons here. For the first time home buyer who is dying to move to a new home, they have many low-end condos for sale. Even some was selling for slightly under $100,000. These are great for first time home buyers it is better to own than to rent of course. Just be careful where you buy and always remember location.

You will find a great deal of condos in foreclosure and they are going at great deals. Check on the amount of foreclosed properties in a complex before buying. Also, always talk to the neighbors and see how they are and if they are happy with the association. When people are in foreclosure, the last thing they pay is the association dues.

When foreclosures loom in a complex, the dues must be increased. The association will sue to get their dues, but this only adds problems to an already problem-laden complex. So even if the condo cost $50,000, check out everything first. You may just be moving into a place where you will lose all you put into the home.

Beautiful Investments that increase in value:

There are many areas that are worth investing in such as Malibu Beach, Seal Beach, and Santa Barbara in California. As in all states, they have good areas and they have booming areas. Finding foreclosure in these areas will show to be a positive move. Banks are less enthusiastic to loan on condos in regular areas, but these boom areas, banks run to. Do your homework first, before purchasing anywhere.

A beautiful condo with many upgrades and at the right price can be a great decision. It is too hard to say the pros and cons of condos as it is like comparing New York City to Harlem. It just is too many variables. Each condo in each town has its benefits and its failings. Look for a reputable Broker to guide you on the right path. As in most things in real estate, look for location, location and location first.