Condos: Why are they a bad investment & what happens to old ones?

[Trevor Burbank]

I have some great mentors in my city, but none of them invest in condos. When I have talked to them, they keep it simple and say that they are just bad.

I am aware of special assessments, HOA fees, but what are the major issues to look out for? Also, what happens when condos get old? Are they renovated in a major overhaul or bought out and bulldozed? Thank you for any guidance!

[Dan Bryskin]

@Trevor Burbank

Here are a few reasons I stay away from condos/ town homes / associations

1. HOA. Not only you are paying fees. They can change rules. Not allow rentals for example, or come up with the pet policy or smoking policy or what ever someone things off.

2. Capital calls. Would you like to receive a letter from association stating they have decided to replace siding and you need to contribute $15k?

3. During the crash / correction they often become a desert towns with the few units occupied, no dues means differed maintenance

4. Some HOA's are run well and some are not. Some times you are paying 3x for someone's nephew to clean the snow and 5x for someones brother to paint.

5. It seems like people come to HOA meeting to complain.

Why would you pay money to let other people control your property? But hey, some people think they are a great. Good luck