You’ve seen articles and heard people mention that buying a condo is a bad investment. Most times they reference a high condo fee as the main problem but there is much more to understanding if owning a condo is the right decision for YOU.
Things to Consider When Buying a Condo…
- Condo fees – Condo fees are usually higher then Home Owners Association (HOA) fees Yes, they are unusually higher than the HOA fees but some condo fees include utilities, fine amenities, secured access to condo building and insurance. What included in your fees and breaking them down into all your expenses will really show you your true cost of ownership.
- Ratios – Condo’s sometimes have a higher investor ratio which makes them non-eligible for various types of loans. This could reduce the amount of potential buyers if and when you want to sell it. There is also a risk of defaults and that could potentially increase the condo fees. So make sure to get the ratio and financial health information about the condo before you consider submitting an offer.
- Maintenance – Condos are great for those people who don’t want to deal with exterior maintenance. Make sure to get the details about what is covered under the condo fee for exterior maintenance. For example… windows and patio or deck maintenance may be the owners responsibility. Know the details before you submit an offer.
- Competition – If you are looking to rent the condo and use it as an investment, then make sure to do an in-depth market analysis of the competition. Compare it to other condo units within the condo building and the area. Understand the amount of market saturation for other condos and apartment buildings available in the area.
- Location – Location, location, locations. Is the condo in a convenient place with access to public transportation or does it have walkability to various amenities?
The main point of this article is that conventional wisdom doesn’t always apply to your specific circumstances. Do the calculations for yourself or get the help of a Cincinnati / Northern Kentucky Realtor with condo experience to understand all the pros and cons of condo ownership before you submit an offer.
Watch This Pros/Cons Video for Investing in a Condo
Tom Reese has 20+ years experience in helping his clients sell their homes for a price that sells and makes them a profit. Tom has helped his clients buy and sell property in every neighborhood in Northern Kentucky and Cincinnati.
About Tom Reese
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