Is it a good time to buy a condo in a city?

[Alex S.]

I've been tracking house prices during the pandemic and they grew a lot for single-family residence houses while city condos lost around 20% and stay on market 30+ days. It's probably will be harder to rent it out now.

Is it a good time to invest in a condo? Thoughts? 

[Michael Dumler]

@Alex S. run the numbers as you would for any other potential investment property, if it cash flows and everything checks out, then pull the trigger. I would note, however, be aware of HOA rent restrictions and association fees. Most organizations require you to live in the condo for a year before you can rent it out (not the case for all complexes). Check your HOA bylaws to determine if you can purchase as a rental.

Given this nation is seeing an affordability issue, maybe majority of individuails will turn to leasing a condo over SFH as a cheaper alternative. Could very well be an intersting investment strategy. As you pointed out, condos tend to have a much slower appreciation value than SFH. Something to keep in mind if you do decide to go down this avenue.