Condominiums: Good to Buy?
There are those who believe that if you are going to buy real estate, you have to own the land, otherwise it is not a "Good" purchase. Those people would lean towards not encouraging one to buy a condo or townhome. Why? Because they think the buyer doesn’t get to own the land.
The value of an asset is closely related to its supply. The more scarce or rare it is, given the same demand, the value or price goes up. A couple of great Americans named Mark Twain and Will Rogers shared a common thought, "Buy land, they are not making anymore" (paraphrased).
Ownership of a condominium or Townhome DOES come with a common interest ownership of the land along with the other owners in the complex. Although one doesn’t own the exact dimensions of the land on which the unit is located, the common interest ownership as a percentage of the whole gives the owner the desirable position of “owning the land”.
There are multiple reasons why some choose to buy a Condo or Townhome instead of a single family detached residence. The primary reason for most is affordability, and secondly as a first step to owning the “American Dream”. As stated above, the median sales price of a Single Family Residence (SFR) in Diamond Bar for the first quarter 2017, according to CRMLS, was $715,000.00. The median sales price of a Condo or Townhome for the same period of time was $365,000.00., a difference of $350,000.00. The median sales price of a Condominium or Townhome in comparison to a Single Family detached home was only HALF, obviously much more affordable.
This article was written by Nef Cortez, a licensed Real Estate Broker, Ca BRE # 00560181 since 1976. He can be reached via e-mail at email@example.com. Please feel free to email any questions regarding real estate.