Here’s my advice on the pros and cons of buying a condo in today’s market.
If you live in San Diego, the median price for a home is $850,000. If your eyebrows rose at that number, then you may be one of the many people considering buying a condo right now. Today, I’ll go over the pros and cons of buying a condo in our crazy housing market.
The biggest and most obvious pro to buying a condo is that it is an affordable way to get into homeownership. In today’s market, there are a lot of reasonably well-off people who can’t spring for an $850,000 price tag. Buying a condo could be an affordable way to invest in a housing market you would otherwise miss out on.
On the other hand, a big con of condos is their restrictions. Low storage space, lack of parking, and homeowner’s associations are all restrictions you might have to deal with if you buy a condo. These can be a dealbreaker to some, but for others, they are hardly noticeable. If you are downsizing, for example, lack of storage space is probably not an issue.
If you plan on buying a condo, I highly recommend getting on the phone with your agent or HOA representative to ask them some questions. The biggest questions you should ask are what is the HOA fee, what does the HOA entail, and what is the HOA policy on pets? Pets can actually be a big one. Every HOA is different, so finding out their exact policy on your furry friends is a big deal.
The last question you should ask is, “What are the HOA reserves?” If they don’t have a lot of reserves, you may be subject to an assessment in the future. No one wants to have this sprung on them out of nowhere, so asking ahead of time is crucial.
If you or someone you know is thinking about buying a condo, give me a call at (619) 869-383 or email me at stenberg@compass.com. I’d love to go over any questions you might have.
