April 17, 2006
Condos vs. Houses
Price. Some people love the idea of condo ownership, and others hate it. Some who are not at all that thrilled with the idea may opt for it for one simple reason - in many places it's a lot cheaper than a single-family detached home. This will be a difficult fact for you to accept if the only condos you are familiar with are developments with names like Country Club Haven and Rockefeller Manor and have Jags and BMWs parked in front of them. Statistically, however, it's true. In some markets the average sales price of a condo will be 40 to 50 percent less than the single-family detached option.
Variety. Remember that the word condominium describes a form of ownership, not a type of building. Although the apartment-style condo is common, there are an infinite variety. They range from a very modest apartment building that has been converted to lavish single-level units built specifically as condos and clustered around a golf course.
Quality of Construction. Several years ago, as the condo concept became more accepted by homebuyers, a conversion feeding frenzy occurred. Let's say you owned an apartment building that with intensive management was barely returning a positive cash flow for you. An astute developer shows you how to convert the apartments to condos and sell them. The profit figures he projects take your breath away. You're convinced and you convert. So did a lot of other apartment house owners.
For more on comparing condos to houses.. go here:
Filed under Home Buying Tips, Most Recent Post by Buyers Only Realty
