What are some good reasons to NOT buy a condo (real estate)?

Question

Even if I had the money I would not want a house. I am a single female, I do not have children (and don’t want any) and don’t want to be married. I would always prefer at least the second level to feel safe, therefore a condo sounds best. Here are some of my reasons

1. I have no interest in ever taking care of a yard or a house.

2. I have a cat and probably besides a very little dog am satisfied with that.

3. I live close to a big city. I would like to stay close to a big city.

4. I like the feel of a smaller cozier place to live.

5. I have been in an apartment for 13 years and have become very accustomed to it; therefore the rules and regulations that bother most don’t affect me at all.

Everyone tells me what a good investment real estate is and I feel horrible throwing so much money away in rent.

Answer 1

Many good reasons to avoid condos.

Harder to finance than a house.

Harder to sell than a house.

Problems with neighbors.

The HOA will run short of money and ask you to raise your            

                    monthly fee to replaster the pool.

The fees never stop going up.

Never appreciate in value as much as a house does.

Crummy parking.

Trash bin is always full and often smells.

Answer 2

it sounds like a condo is a great fit for you.  The biggest risk in buying real estate is the possibility of a change in the market and the price drops.  If you're planning to stay in the same location for the next 5 years, that risk is VERY low.  If you think you might up and move somewhere else next summer, you'd have to sell and could potentially lose money where as if you were renting you could end your lease and walk.

As long as you find a well maintained unit in a complex you are comfortable AND you get a good fixed rate loan I'd say do it.

Answer 3

#1 reason NOT to buy a condo - Home Owners Associations

Before you make a commitment to buy a condo, make sure you have checked out the HOA.  Some HOA's are very fine happy, slapping you with ridiculous fines for such infractions as having live plants on your patio or hanging a wreath on your door.  No warning, just the notice that you owe this fine.

The opposite is the HOA who does nothing to anybody.  Your neighbor could be holding rehearsals for his metal band every night starting at 9pm and the HOA will do nothing.

I have a friend who sells condos in his neck of the woods, and bad HOAs are the primary complaint.

A condo sounds like a good option for you, and it is a great time to be in the market.  Good luck to you.

Answer 4

You sound like a perfect condo candidate.  The rules and regulations can get to be taxing sometimes, but if you prefer to have someone do most of the maintenance and tell you what you need to do to keep up, you're good.

My condo requires me to turn in a receipt each year for the following:

A/C inspection

Heater inspection

Dryer vent cleaning

Fireplace flue cleaning

We also have to get permission to hang anything on our patio, need permission to have a satellite dish, need permission and approval on new windows or doors installed, and also have special restrictions as to our flower boxes and other patio decorations.

I really miss doing yardwork, so a condo wasn't the best choice for me.  Though being young, I appreciate having freedom to leave for two weeks and not worry about the yard.

Answer 5

The rules and regulations don't only affect you, but affect your ability to sell it in the future.  Example... they decide no more pets.  MAYBE you'll be grandfathered (again, it's up to the board they can do what they want), but even if you are, whoever buys your house later won't be able to have a pet and that is a major saleability problem.

The board can do whatever they want to also.  They can make silly rules that can totally mess you up.  You never know who you will live next to... they could be total jerks, and on the other side of your wall, and since they own it, nothing can be done to kick them out.

Your condo fees will go up every year.  And years when they make a mistake and under-budget, they'll go up a lot.

My suggestion... stay in the apartment or buy a townhome.

Answer 6

I think it's a great option, in fact I close on one next week.  The HOA might be a concern, but if it's managed well everything should flow smoothly.  Some option would be to look at the minutes of the meetings to see what type of issues come up.  Another option would be to get on the board (many are made uop of the owners) and this way you will have a say, or at least a vote, of what happens.