Why California Condos Are Such A Good Investment For Couples
According to the California Association of Realtors, a median home is priced at around $567,690. This being the case, it's no wonder condos have become an increasingly attractive home ownership option for singles, young couples and families and even retired couples as starter homes as opposed to the traditional detached single family home. Usually condos are located in well-established neighborhoods, where the suburban style of living has been proven.
Although the majority of California condos are situated in suburban areas, most of them are located close to major freeways and this provides the homeowners with accessibility to their respective workplace. If we take square footage into consideration, then some condos might prove to be the same size as houses, or others have a square footage of comparable apartments. Due to their varied price range, condos must be taken into consideration as starter homes for young couples or singles.
With the rapid appreciation of the price for single-family homes in the Los Angeles area, most young families are feeling the strain of such a purchase, so they turn their minds and wallets toward condos. Many young couples will often choose condos in a neighborhood with a better school system as opposed to purchasing a single-family home in a less desirable neighborhood. As for retired who may just want to downsize, they usually have the equity and credit rating to buy in more luxurious condos in the Diamond Bar, California community for example, where luxurious, 1400 square foot 2 and a half bedroom condos with European kitchens start at $550,000.
The profitability of condos has been proven in the last couple of years to be very close to investments in single-family detached homes. The rate of appreciation of condos and single-family detached homes over the last five years has been similar in the communities of Diamond Bar, Walnut, and Rowland Heights, with both exceeding 20% annually.
However, as the market has cooled and there has been a price correction in available condos, they still are a very good investment. If you're thinking about investing in one of California's condos you must take into consideration some factors that stem from actually buying the condo and living there. You must be sure you wish to live in that community, in that area, and be satisfied with the building as a whole, the common areas and whatnot. Also as a co-owner of the building, you will be assessed your proportional share of the cost for repairs required in common areas, such as the roof, heating system, or general exterior maintenance. You must take these costs into consideration when thinking about your overall monthly budget.
Now of course condos are a great investment since they enable you as the homebuyer the opportunity to live in a much more desirable neighborhood as well as provide you with the tax benefits of homeownership. Most buyers who found themselves priced out of the single-family home market prefer condos since the sale prices for condos are generally lower than those of single-family homes with 20 to 30 percent. They also prefer condos because they will have all the amenities of owning a home, and also the ability of sharing the costs of upkeep on the building, roof, and maintenance.
