Are condos worth buying?

Question

Me and my Husband want to purchase a home but they are way too expensive in L.A so we are thinking maybe to buy a Condo, but my Mohter says they will not gain any equaty and when its time to sell we wont make back much money.Another of my questions is,can you remodel the insid of you condo to how ever you like?

Answer 1

Yes.

Answer 2

Condos do gain equaty, just not as fast as homes.  You own the condo so, what you do on the inside is up tp you.  The outside may be all part of a owners assoc.  To make sure of this you would need to ask for the bylaws of the assoc before you buy the condo.  This would be wise no matter what so you know the rules of living there before you purchase.

Answer 3

no.

Answer 4

Your mother is half right. If you are talking about the equity gain in percentage, then a condo will be about the same a house.

If house price is increased for 50% then a condo will be increased about the same 50%. However if you are talking the equity gain in amount, then if a house worth $800k now, the future equity gain will be $400k, but the condo which is worh $500k now will only gain $250k.

Regarding remodeling, you may do whatever you like as long as the structural plan is not changed. You may not converted 1 bedroom to 2 bedrooms or breaking down any wall without permission from the Condo Board or permit from Dept of Building.

Answer 5

To me, it seems that  your big question is how you measure worth.  To me, who lives in the deep woods in a hundred-some-odd acres with all the wild animals and no human neighbors within earshot or eyeshot, I wouldn't give the sweat off my brow to live in a condo or in LA.  But then, I was once stuck in a big city and never believed I'd be able to live where I am now, so I might have considered it then.  Nah, it seems like having to BUY your apartment, and too many restrictions on what you can do, so, it's just not for me.  Maybe one day you too can live in nature's pristine beauty and you'll see where I come from.  Enjoy it wherever you are though.  I did when I had to live in a big city.  I just love it a whole lot more living deep in the woods and hearing the wild animals and birds etc..  God Bless you.

Answer 6

Oh, I though you were saying condoms were too much... opps.

Well, I say stay away from them since your mother is right, the way the houing market is going in California, you might be paying more to buy it than to sell it later on, and their selling vaules arn't great. Second, you can remodel but most of the time, condos arn't housing that you live in forever.

Answer 7

it depends on the area...

no you cannot remodel a condo to your tastes..

Answer 8

Buying a condo is just like buying a house.  Some are in good neighborhoods and appreciate in value, some aren't and don't.  Do the same kind of research.

You will want to know how many of the units are owner occupied as compared to rentals (a higher number of rentals may have a negative impact on financing and resale).  You will want to be certain the the Home Owners Association is not currently in litigation with anyone as all owner's could have liability in the case of a lost lawsuit.

The Codes, Covenants, and Restrictions (CC&R's) will tell you what you may and may not do to the unit as an owner.  Read them carefully.

Answer 9

That's not entirely true. Depends on location/neighborhood and all that. My friend's condo was bought at 112K in the early 90s. It's about 500K now. In time, you could always sell it and use the profit as downpayment on a larger home.

Yah, you can remodel -- you own it. Although there are some rules you must abide by, given the Association. in SoCal, watch out for termites in condos. make sure you have someone check it out before you sign!

Answer 10

I bought a condo in '95, which had lost value from the previous year.  The market continued to go down, but then recovered slightly.  When I sold it in '99, it was for the same price that I bought it for in '95.  Then, I saw it sold again in '04 for about twice what I sold it for in '99.

Basically, condos are a high risk investment.  With the current market, it's a very high risk investment, and large potential to lose money (especially as interest rates keep increasing).  Many people tried to discourage me from buying my condo.  Condos in great neighborhoods have gone down in value, just like ones in bad neighborhoods have gone up in value.  It all depends on the market.

However, if you can afford it (not counting on being able to sell it to move into a larger place), then it can be a great and less expensive alternative to single family homes.  I loved the fact that I owned my own home, and wouldn't have done things differently, even if it may have been less expensive to rent.

Remodeling is up to the condo association.  Some places are fairly rigid, but most allow things to be updated, like kitchens, bathrooms, etc.  Ask around at the management office and try to look at what other units have done.

Answer 11

The 1 BR westside condo I sold in Dec. 2003 for $250K just resold recently (less than 2.5 y later) for $369K...so I'd say it all depends on the market...condos are HOT in LA because sometimes that's all anyone can afford.  It is way old-school (1970-80) thinking that they do not hold their value or gain equity just because they are condos.

As for remodeling, pretty much anything goes, but there may be some restrictions (like not putting things on the outside or enclosing balconies without permission).   Some condos restrict hard flooring (tile, wood, pergo) on upper floors due to sound carrying down to the lower units.  But other than that you can pretty much do what you want.