Are Condos A Good Investment?

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[jgtdragon]

Depends on location. I bought my condo in the bay area for 155k in 2010 and now its worth 400k

[bhannig]

Got my condo for 64 now it's worth 110. First time I've ever had equity in anything.

[alishiagivens]

Wish I would have seen this before I bought my condo. Managment/ HOA horribly ran!!! Delayed maintenance, horrible bookkeeping or should I say lack of! I bought at 26 years old... had no idea what a nightmare poorly ran HOAs are.

[ChristopherAbelman]

This Housing market crash might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[AleksandrVasilenko]

People complain about HOA fees but forget that it can often be less expensive than doing stuff yourself. What matters is that the HOA management is solid, that they use the money collected responsibly and wisely. On top of that, a condo is a lifestyle, not a place of residence, that is something people look past. They are often in downtown areas and are walking distance from amenities that the new generates are looking for like public transit, bike lanes, bars, clubs, restaurants, and stadiums. And beyond that, many condos have stuff like pools, gyms, hangout areas, and rooftop patios that attract people.

Look at what the HOA management does with all of this. Is it well maintained?

[israelthegamer]

I invested $76K in a condo in Florida and provides me $7, 000-$8, 000 profit yearly. I will never get that having money under couch, in the bank or in a fency car. Real state will always give you a lot more that having cash in hands.

[Josh-iieq]

Just bought a condo and put 20% down. Going to live in it for 2 years and pay it off. Its directly across from a major hospital and good restaurants. Hoa is $295 and includes heat here in New Hampshire (its cold).
We sold our house and moved down in foot print to start paying off properties and renting them out. So glad I made the switch.

[mikemclean]

Simple advice for simple people. The deal is won or lost when you sign the purchase agreement. Understand your market and the financials of the complex you’re buying into. If the board isn’t well run, get on the board and solve the problems. Good video, Dave!

[LarryAnthony-utok]

The best investment one can do right now is investing on real estate though stocks are good but ever since I swapped to real estate, I've seen so much difference.

[Nocball]

Condos are only a good investment if the value appreciates by quite a bit... otherwise, no. Why? HOA fees add up.

[dabondoranaldo]

You need to find a good high-end condo - strict management is a good thing. They won’t appreciate like a single family. Cheaper to buy and rents can be as high as a single family which means the margins can be better, especially if you buy with cash. Smaller units typically have lower HOA fees and HOA fees are deductible when the unit is rented. HOA fees also cover desirable ammenities. For example, I have a condo with a low/deductible HOA that covers 24/7 door person/security, electrics/gas/water cable/wi-fi and premium channels, gym, pool, and free onsite laundry which can be advertised as ‘included in rent’. I did a good renovation which means I get tons of applicants and can always find someone with a good history and credit.

[tahirisaid]

After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Any Advice?

[jas]

Condos have too much regulation for me too much invasion and I see them as fancy overpriced owned apartments!

[vivianblack]

When you look to buy a condo in Canada, the seller has to provide a year's worth of council (HOA) minutes.... read these over Very Carefully. They provide a good clue to the state of things in the buildings. I lived in a condo for 15 years in which time the price quadrupled and I now live in a little house in a small town, mortgage free.

[jaywilliam]

Depending on where you live, buying a condo can be the worst mistake you can make especially when it comes to HOA fees. It can be like buying and renting at the same time and repairing things yourself.

[gamesgeargadgets]

Condos can be a good real-estate investment. Like anything else. You might not get the same gain in value as a single-family home, but depending on the area it could be a lot easier to rent.

[kayfarquar]

Make sure you find out all about Special Assessments. The board can increase the maintenance to pay for a special project. Not fun.

[julieevanb]

I lived in an hoa condo association. I was on the board but I was the only one who truly understood how the reserves work and that we needed to keep raising the due to reflect the budget proposed in the reserve study. Since I have left the board and sold my unit, I have learned that the board has not raised the dues in 2 years even though the reserve study showed that the dues needed to be raised $20 a month for 4 years and then level off for inflation after that. They are living in la la land! When the roof needs to be replaced, as I feel that is probably the most important maintenance item, there will not be enough money there!

[mySustainableStories]

The HOA fees are what keep me away. I owned a Condo, as my primary, and sold it for $80K more than what I paid, just a few years later. I took that money and bought my primary and a rental w/o HOA, closer to primary. I probably wouldn't buy a condo now, but it's a good start, if the fees are under $100. I am now looking for my 1st summer vacation home...and it won't be a condo.

[deadreckoner]

The geniuses at my HOA decided it was wise to charge owners to dig up and replace a square patch of asphalt where their car leaks too much oil. Crazy.