Is buying a condo a good idea in today’s Southern California real estate market?
Real estate buyers and investors historically have a love-hate relationship with condominiums, townhouses and patio homes. Depending on your financial situation and future plans, buying a condo in Yorba Linda or the surrounding communities can be a wise investment today.
The Ever-Changing Real Estate Market
Some times during the real estate cycle are more amenable to buying a condo or townhome than others.
At the height of the market in the mid-2000s, prior to the bubble bursting, a condo was the only type of real estate many buyers could afford. But once the market crashed, detached, single-family homes became affordable again for many buyers. For that reason, however, demand for condos dropped significantly and they become difficult to sell.
Today, as the market has stabilized, so have prices and demand.
The Financial Advantages of Buying a Condo
Because California property values remain consistently high, single-family home prices are out of reach for many buyers.
For those who prefer not to rent, buying a condominium becomes a viable alternative.
As long as you select a unit in a good location and ensure that it has the right amenities to establish its resale potential, you should be safe in your investment. Consider the additional association fees that come with condo ownership, as that will add to your monthly housing costs. But remember that you will likely benefit from the services provided by the condo owners’ association.
As with all major financial matters, we always recommend that you consult a financial advisor or tax professional before making an investment decision.
Other Reasons You Should Consider Buying a Condo
Condos and townhomes are ideal for part-time residents and buyers who travel often, as well as for those who don’t want the hassle of yard and exterior home maintenance. They’re particularly attractive to younger buyers and retirees; however, larger units have become more popular with families as well.
In Southern California, you may want to consider buying a townhome or condo if you’re building a portfolio of rental properties. Because the rental market is hot — and projected to remain so for the foreseeable future — you may be able to enjoy positive cash flow while the property’s value appreciates.
Before considering the purchase of a condo, townhouse or patio home, be sure you understand the differences as well as the rights and responsibilities of ownership. Representation by an experienced Realtor® will assure you that you don’t have any unpleasant surprises down the road.
In Yorba Linda and the surrounding communities, the Edie Israel Team provides specialized services to both buyers and sellers. As the area’s premier real estate professionals, the Israel Team makes the process as easy and hassle-free as possible.
Contact us today, and let us answer all of your questions about the process of buying a condo or townhome in Southern California.