Condominiums have become popular in recent years both as residences and investment opportunities. Are Condos a good investment?
There have been several reasons for the popularity of condominiums. The first is the changing dynamics of social life in the modern era. The time consuming need to maintain a detached home and its surrounding property is removed from the condo experience. Homeowners Associations, known as HOAs, generally take care of all the interior and exterior upkeep. Although they charge dues to fund these services, the dues are factored into the rental or purchase cost. The big thing seems to be the accommodation of today’s fast paced and busy lifestyle.
The increase in popularity is also a fueled a bit by the aging of the baby boomers and the overall increase in the aged population. An increase in the general population and the overcrowding this has caused in many urban areas has led to condominium construction as a viable alternative to suburban developments in many places. So, there are a lot of factors that are making condos popular. When something is getting popular, it stands to reason that it is also a very good investment vehicle.
Are condos a good investment? The answer is a resounding yes. There are some general guidelines and a few pitfalls, but this is true of any investment. What makes the condos a good choice, especially for the beginner in Real Estate Investment is their popularity and those HOA’s. The Homeowner Associations usually maintain a fairly strict standard within the condominium. While this may annoy some residents, it certainly aids the owners. One of the biggest problems facing the investor in rental property is insuring that the property is properly maintained to protect the investment. This is usually not a serious problem in condos.
Appreciation in value is the prime driving force behind a wise Real Estate investment. It does not matter if the condo is going to be used as a vacation time share property, a straight rental property, or even your private residence, the idea is that you should be able to sell it for more than you paid for it. The value of condominiums contains to rise as their popularity continues to grow. The very same factors that are pushing the popularity are not likely to change or ease off in the foreseeable future. The population continues to age and the life style continues to grow more active and more time pressured. Also, space is not going to get any less limited.
Condos are an easier deal and ideal for first time investors in Real Estate. However, the idea of even a good investment does not include anything like an iron clad guarantee of success. If you are going to be a successful Real Estate investor, you need to be an educated Real Estate investor.