If your question is simply do homes appreciate faster and more than condos?... the short answer is yes. With homes you own everything: the land, the home, the trees etc. But with a condo you only own the "air" space and the right to live there. With a condo you can not just simply change the exterior to your liking. Another reason for the increased value may be supply and demand. Usually 4 condos can be erected on a parcel of land that one single home may occupy. There are usually far more condos for sale than single homes in any given neighborhood, with few exceptions. But look at the bigger picture also. Homes require a lot of exterior maintenance and up keep, ask any home owner and they can speak on this subject for hours. Usually condo exteriors are maintained by the association. Also heating and cooling a home can be more expensive than a condo, which are traditionally smaller. Ask yourself...Do I want to handle cutting grass and shoveling snow? Could the time and money you save be reinvested in your career to off set the appreciation? Just a thinking point.
Some condo negatives include fees, which most of the time you can not control and do go up (like everything else). And yes they do not appreciate as well as homes do and sometimes even depreciate.
My advice when real estate shopping look past the new wood floors and fees and ask yourself is this me?
Do I want to live here? Bottom line........being happy where you live out ways investment and/or liability any day!
Robert A. Martini
Keller Williams Real Estate
Very rarely will a condo work out to be a good investment. Condominium living is about lifestyle and you pay a premium for luxury and convenience. It is rare, especially in this market, that the market rent will cover a conventional mortgage plus monthly condo fees on most condos in Philadelphia.
That is not to say there are no exceptions. There may be some REOs, pre-foreclosure, short sale opportunities, etc. that may become available and sold very quickly to savvy investors. for the most part , those cases are very rare.
When you consider condos v. townhouses in the same neighborhood, I believe hands down, you will see much greater appreciation in a townhouse. Feel free to call me with any further questions. Have a great week.
All the best,
Mack is correct: no one knows what the future brings, our current economy is proof. This will be your home & since you should enjoy going home, which do you feel would make the best choice for you & your lifestyle?
I have found that younger clients (and other buyers that would rather spend their free time unwinding and having fun when they get home) enjoy the ease of ownership afforded by the hoa of condos, town homes & lofts and that it is easier to budget home ownership costs because the hoa is responsible for the exterior maintenance of a home including repairs and yard work. Many also find that they like having the amenities such as pools and club houses with out the hassle & extra expense.
Of course there are clients that even the mention of 'condo' or 'town home' makes them disgusted because they feel that it is like living in an apartment and/or they don't like even the idea of an hoa fee and the control an hoa has over the property.
Though single family homes are typically more desirable, they are usually more expensive so buyers priced out of those properties will then look at the condos (at which time condos will usually appreciate more than when home prices are low). (Because prices and interest rates are currently very low and the hoa fees on many condos can run several hundred dollars, you may be able to afford 'more' home for the money than when prices and rates were higher- so have your lender run several scenarios to give you a better idea).
Also, remember that adage 'Location, Location, Location'; properties in desirable areas, no matter what sort, usually do better with their values.
Best of luck no matter which you decide on!
Condos will do better than townhouses in the long run. Look at two recent reports:
â€¢ The Center City District ( http://www.centercityphila.org ) reports Center City gains about 2,000 residents per year.
It's not just young, urban professionals driving this growth. Philadelphia is a haven for retirees because it does not tax retirement income and has relatively low real estate taxes. Both groups want low maintenance lifestyles.
â€¢ The reknown Brookings Institute recently published a study on "bright flight" documenting the nationwide center city, low maintenance style living. ( http://www.huffingtonpost.com/2010/05/09/suburbs-losing-young-whit_ )
But if you're seriously interested, call me at 215.266.7227 and we'll talk about your case in particular. After, it's a home, not just an investment. There are options which combine the best of both worlds/
Coldwell Banker Preferred â€¢ Avenue of the Arts
Do you want a private yard or is a deck or patio better for you?
Do you want a bit more of privacy that a single family home can offer or it doesn't matter to you?
These are some to the questions we thought you'd need to ask yourself before going out to buy your Home.
All the Very Best
Dave & Lisa
Not to be too general, but it honestly depends. As James stated below, there is currently an oversupply of condos in Philadelphia. The reason being is because when the market was doing well, condos offered buyers a less expensive option with lower maintenance. Plus, they were cheaper for developers to build due to the influx of high-rises in Center City.
I would not necessarily say that townhomes/rowhomes appreciate more than condos over time, but I will say that condos are easier to overbuild than THs/RHs because more are typically built at once. You might actually be better off purchasing a condo now because prices are typically lower than that of THs/RHs (high supply = low demand = low prices). Plus, if that condo is in a prime location with potential to appreciate, you might actually make out better.
Just one professional's opinion. Best of luck with your search!
Timothy M. Garrity | Brown McKinney Real Estate Co.
Real Estate Professional & Consultant
email@example.com Email | http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-519-5490 Fax
If you buy a condo the monthly dues cover a lot more things than if you buy a home in a planned unit development (PUD) where the land belongs to you.Both forms of ownership have rules and regulations. You should get a copy to see if they suit your needs. eg some do not allow pets, some do not allow fences etc.
A good agent will help you and show you appreciation in the area that you are considering.
You can buy based on your budget and look at both types and see which homes have most items on your wish list.
James Yoakum - Realtor, SFR
Brown McKinney Real Estate
1631 W. Cabot St.
Philadelphia, PA 19121
office: 215-825-2250 x.1002
Detached single family homes will do better than attached homes (Townhomes)
Townhome will do better than condos
Condos will do better than Co-ops
I defer to Mac's answer below - he is right on the mark....
Serving MD, DC and Northern Virginia
The future is uncertain, and often out of our control.
A home is the stage setting for your life, and given that the chances are that the house will appreciate or depreciate as readily as the condo, a better decision point would be: which would you prefer to live in?