Final week I requested all of you is it a good suggestion to purchase a condominium as an funding? The actual property execs have spoken and as you’ll be able to see from the chart above, the overwhelming majority felt there have been some alternatives in condos on the proper value factors whereas over 20% felt that it’s best to keep away from all condos. The feedback highlighted some enormous pitfalls from condos together with benefits/alternatives.
What did actual property execs say on shopping for a condominium?
I used to be a bit stunned by the solutions, solely 2% felt that condos total have been a superb funding, 23% stated steer clear of all condos, and 75% felt condos have been a superb funding in very choose markets on the proper value factors.
What do actual property execs suppose the important thing pitfalls and benefits of a condominium buy
The overwhelming majority felt that there have been some alternatives in condos, however consumers have to be extraordinarily cautious. Primarily the times of every part in actual property turning to gold are over and there’s some draw back danger in actual property together with upside in choose properties. Listed here are a few of the finest feedback:
- The overwhelming majority of decrease priced condos are a nasty funding with the HOA charges, however there are nonetheless alternatives in low rise condos in good places on the proper value level
- HOA’s have been mismanaged for many years, reserves are woefully underfunded and insurance coverage prices added to the combination simply make them a nasty funding. I promote in each CO & FL, wouldn’t advocate buy in both state
- Florida seaside. Ski in ski out, each are most likely holding up
- Relying on HOA charges, value, and placement, condos could be a nice entry level into dwelling possession. From an funding standpoint they’ve the upside of future rental potential, decrease upkeep prices, and may often be discovered in additional fascinating areas for a cheaper price level than a house or townhome.
- As a common rule, I’m not an enormous condominium fan…too many insurance coverage, administration and monetary points related to HOA’s. Nonetheless, in particular markets and places, they’re nonetheless the one affordable and inexpensive choice – it’s simply vital to do your analysis earlier than shopping for.
Thanks everybody on your participation and insights in my survey. The perception within the feedback from readers was superb and I hope everybody gained a superb perspective out of your fellow readers. My key takeaway from this survey is that it is advisable be extraordinarily cautious when shopping for a condominium and I’d not advocate going alone on this buy, discover a realtor who actually is aware of the market and sophisticated to assist be sure that you make a superb choice and keep away from lots of the pitfalls of condos. Thanks once more and keep tuned for upcoming surveys
Extra Studying/Sources:
https://www.fairviewlending.com/never-buy-a-residential-condo/
https://www.fairviewlending.com/the-war-on-landlords/
https://www.fairviewlending.com/house-prices-hit-another-record-should-you-even-care/
https://www.fairviewlending.com/root-cause-of-real-estate-price-declines/
https://www.fairviewlending.com/will-real-estate-fall-to-2020-values/
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Glen Weinberg personally writes these weekly actual property blogs based mostly on his actual property expertise as a lender and property proprietor. I’m not an armchair reporter/author. We’re an precise personal lender, lending our personal cash. We service our personal loans and personal industrial and residential actual property all through the nation.
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Written by Glen Weinberg, COO/ VP Fairview Business Lending. Glen has been printed as an skilled in laborious cash lending, actual property valuation, financing, and numerous different actual property matters in Bloomberg, Businessweek ,the Colorado Actual Property Journal, Nationwide Affiliation of Realtors Journal, The Actual Deal actual property information, the CO Biz Journal, The Denver Submit, The Scotsman mortgage dealer information, Mortgage Skilled America and numerous different nationwide publications.
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