Quote:
Originally Posted by KingOfJericho
The purchase of my condo, which I now rent out, has thus far been the worst investment I've ever made. The problem with condos is that the comps are too easy. It's like real estate communism. They are all treated the same and if the value goes down on one, no appraiser is willing to appraise for a penny higher on another unit. It's partially the laziness of the appraiser but also a reflection of how badly the banks were burned by the 2008 financial crisis. I always argue that the value of property is always the amount someone is willing to pay for it but the banks disagree. It's all recovery value, should you decide not to pay. I could have purchased a Porsche for the unrealized loss I'm currently sitting on.
My HOA, which I am reluctantly the president of, has had to raise monthly CCs by $60 and impose an $1,100 annual assessment due to a complete lack of foresight by earlier boards.
The best advice I have to give is to NEVER buy a condo or townhouse. Get a freestanding home and you will forever thank me.
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This. I was recently in a similar boat where I had the option to purchase apartments for 300k+ (this is for across the water from NYC hence the hefty pricetags) or purchase a single family house for 400+. Note on the condos you have a 800-1000 maintenance/HOA fee which amounts to over 300k extra over a 30 year span. I opted to go with a house and although more expensive upfront, I have the liberty to do as I wish in it. I have yet come across somebody who got locked in a condo/apt situation (buying vs renting) who is 100% happy.
Good luck!