what appreciates faster, condos or homes?

Asked by Derek, Santa Cruz, CA Tue Mar 25, 2008

I'm trying to decide whether to buy a 1-bed condo, 2-bed condo, or go for a small home. Which has greatest potential for capital appreciation? Thanks!

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Terry Ballan…, , 95003
Mon May 12, 2008
Terry Ballantyne, Indigo Beach Properties here. 831 588 8485.
In this current real estate cycle, appreciation is scant in some areas, negative in most. In Santa Cruz county there is such a wide assortment of quality when it comes to condos. Most were build in the
70's and show it. Those can appreciate if the owners remodel and update, adding value and panache.
The tired old stock ones are drifting down. Having said that, the affluent circle over the hill seek refuge from the city and still want and buy second home condos that they use as personal expression and enjoy
fixing up. The condo market is fickle, and for a historically solid performance the 3 bedroom 2 bath home is still the winner.
1 vote
Linda Ginex, Agent, Newport Beach, CA
Tue Mar 25, 2008
Hi Jared,
Historically Single Family Residences tend to appreciate faster than Condos where you don't own any land. This could be different in some popular downtown areas however. If you decide to buy a home shoot for a 3 bedroom, 2 bath. If your location is close to the beach then a 2 bedroom may not be a bad investment.
2 votes
Rain Jordan, , Aptos, CA
Fri Apr 18, 2008
Hi Jared,

Rain Jordan of Bailey Properties here.

I believe that a single family house is usually the best bet. Consider, for one, eventual resale value: HOAs and their fees scare off many potential buyers. Other hindrances including lack of land, size, privacy, peace (noisy neighbors, for example), and, often, natural light. Houses, on the other hand, do not typically have those hindrances, at least not to the same degree, and typically SFR properties can be redeveloped (added on to, for example). Add to that the fact that there are some great deals still out there on houses right now, and all signs seem to point to HOUSE!

I do not believe that prices will get much lower here. Coastal properties in this area, I believe, are going to stabilize and recover. (See the Market News section of my website for a recent article on this topic.)

Feel free to email or call me to chat further; I'm happy to speak with you anytime.
Web Reference:  http://www.rainjordan.com
1 vote
Barry Green, , Santa Cruz, CA
Thu Mar 27, 2008
In Santa Cruz County, it all depends on the area/neighborhood. If you are talking about the whether a single-family home appreciates more than a condo in the same neighborhood, the nod usually goes to the home. Santa Cruz is difficult to figure out in the current market. One need almost approach buying property like one normally approaches buying stock or mutual funds.- it is very difficult to know where the bottom is, so focus on what features and location are really important for you and combine that with a longer term investment horizon, say 5-10 years. Personally I think conditions will remain soft, property values will move sideways for sometime as the credit fallout gets sorted out. If you are going to buy property in the near-term, Santa Cruz is certainly a good place to buy.
1 vote
Curt Abramson, Agent, Santa Cruz, CA
Tue Mar 25, 2008
Jared, Curt Abramson from Bailey Properties in SC here. The answer to this question will depend mostly on the specific complex and/or neighborhood. As you've no doubt seen, there can be tremendous variation in value and appreciation within just blocks here. I can share some info with you about which areas have recently shown the greatest appreciation, as well as which have held their value most readily. They are not always the same.

In the past few years, we have seen areas which were previously the lowest value show the most appreciation, primarily due to a runaway sellers' market and high demand. During that timeframe, buyers who bought and sold in those areas, such as Watsonville or the San Lorenzo Valley, may have achieved the greatest return. However, with the shift in market, those places are also showing the greatest loss in value, and have given back most of the gain. In our current market, your attention should be directed towards the areas that have always been in demand, and towards finding the unique property that is priced to sell.

I just helped a buyer get into a home in Aptos that was bank owned, and probably listed for 20-25% less than comparable homes in the neighborhood. Their gain in equity was immediate, on paper at least, and judicious improvements will net even more gain for them. Good luck with your quest - let me know if I can provide you more specific data for complexes or areas you have in mind.
1 vote
Rebecca Cham…, , Palos Verdes Estates, CA
Tue Mar 25, 2008
Single Family Homes, no question. They tend to appriciate first and depreciate last (over condos/townhomes.)
1 vote
Hi, , Virginia
Tue Mar 25, 2008
maybe you haven't noticed
but house/condo prices are falling
that means depreciating
currently the question should be
what depreciates faster, condos or homes?


good luck
1 vote
Betina Forem…, Agent, Austin, TX
Sat Nov 1, 2008
Dear Derek,
Traditionally Single Family homes will appreciate faster. However if your local downtown condo market is red hot that could make the difference. Normally I would stick with a house over a condo for a few reasons. 1. You actually own the land your house is built on, and can do as you wish with the yard. 2. Condo Associations are notorious for raising the HOA fees every year. Who knows how often they call for special assessments for repairs or maintenance. 3. You have control of what happens to your homes exterior, which would not apply to a condo. Good Luck!
0 votes
Joan Patters…, Agent, Rancho Cucamonga, CA
Fri Apr 25, 2008
Hi Jared, Joan Patterson, with Keller Williams Realty here: I agree with everyone who has answered! Single family appreciates faster. But, like it has been mentioned, if you can only swing a condo, then I would get my foot in the door to building equity instead of throwing my money away on rent!
0 votes
Sandi McGinn…, Agent, Capitola, CA
Fri Apr 25, 2008
Hi Jared, Sandi McGinnis-Garcia, Realtor for David Lyng Real Estate. As any investor will tell you, single family homes will always appreciate faster, give you more control, are easier to sell in a declining market and are more desirable to rent. Vacany rates and turnover rates on condo's are much higher than that on single family homes. But, if you want to get in and only can swing the payment on the condo right now-by all means get in! A condo can be a great starting point to homeownership. There are certain things you need to be aware of in the complex you may be considering, such as the homeowners assoc. reserves, any future assessments looming etc. If you need help with this process I would be happy to work with you. My contact info is on my website at http://www.SandiGarcia.com...Representing 4 local generation of time honored values........................
Web Reference:  http://www.SandiGarcia.com
0 votes
Eric West, , 03801
Tue Mar 25, 2008
This answer is not one that can be painted with a broad brush. In some area’s Condo’s will out perform single family homes and many other markets it can be the other way around. If you look historically at the real estate markets nation wide single family homes will cost more and thus give a larger return for the initial investment over time. However in some markets condo’s are moving quicker in today’s market and thus turning a faster return. As for some of the comments about a declining real estate market, theses people need to look out side of their market areas and look back at the 50%-100+% appreciation they have enjoyed over the last 5-7 years. In some markets things are not going gang busters however homes are selling and the sellers are still making a pretty good return on their investment. Now keep in mind this does not apply to speculators who bought in the last 2yrs looking for the quick buck.
0 votes
Khazeem Asad…, , Dallas, TX
Tue Mar 25, 2008
Hi is 100% correct. The days of "appreciation" is over for now, and they won't return for some time and any one that tells you otherwise is misleading you.

Khazeem Asadullah

email: info@serapisdebtservices.com
0 votes
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