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| *Ostroff, Fair and Company>>>Renting & Real Estate |
I'm considering buying a condo, but have been cautioned against doing so because of resale value. Should I? |
My friend, who is a realtor, is cautioning me against buying a condo because she says it will be hard to sell in the future. I have heard this from other people as well. The condo that I am considering is in a nice area, brand new (new construction), two levels (townhouse style), and has a one-car garage. The condo fee is low ($155--it is located in the Baltimore, MD/Washington, DC area). There is no yard, but I don't want a yard to maintain. I currently have a large single family home with a huge yard that is too much for one person to maintain. (I am a 36 year old single woman with no children.) The townhome-style is such that there would be a unit on top of mine, and I would share walls with other units. I think it's a good deal, it's within my price range, and is in a good location. Any thoughts would be appreciated. Depending on location with the upcoming military expansion at Ft. Meade and Aberdeen, the condo sounds like a good investment. For example, I used to live in Frederick and many condos were going up along with townhouses and single family homes. This development is 10 minutes from Ft. Detrick, another beneficiary of the military expansion. As long as there is steady demand for small, simple spaces - the condo sounds like a good option. The housing market is burning itself out and prices will be more reasonable in the next 1-2 years. It all depends on the market your in, and the location of the condo. Around here you could by a shack and sell it for more, b/c the demand for housing is so high right now. Since your friend is a realtor she probably knows best. Is she good at her job? Condos can be great alternatives to apartment living. If close to good transportation like a metro station you can't go wrong. But if you are way out in the boondocks, then you will lose money in a slump. They are the weakest properties. Also, never ever buy a property where most of the people are renters. Old guy. If you are buying it as your primary residence, it seems you have decided it is for you. If you are buying it as speculation, your friend may be right. Now is a good time to buy a home because prices have gone down. They may stay down for a couple of years, but if this is for your home, that should not be a consideration. In the long run, the price may increase. You may want to live in the condo the next 20 years, so why should you care what happens to its value in two years. Because it is a buyer's market, you may be able to negotiate a very good price.. If you are buying to live in for more than a few years then great. If you are buying as an investment then i would be careful. if you are reading the newspapers and listening to the media, then you already know that property values are continuing to fall on a daily basis. this is one of the things forcing people into forclosure...they can't refi..cause their loan is too high and the value of their property has fallen. keep in mind that whatever you purchase it for today, it will continue to devalue over the next two years, thus not allowing you to refi with that time...not until the real estate market in the U.S. starts to turn around and the estimates for that are well past 24 months. good luck |
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