One bedroom condos have been long considered to be bad investments. Who buys one bedroom condos? Well, not everyone thats for sure. However buyers of one bedroom condos may be growing segment of the market with an aging population.
With that in mind I just sold a one bedroom condo in Campbell, with an HOA under $300 a month, walking distance to the Pruneyard, the Los Gatos Creek Trail, and a quick bike ride to Downtown Campbell all for around $200K. What a great property for the price. And if you don’t want to live in it we can find a renter who will pay you about $1200 a month. Thats close to about a 3% return, not bad these days in an area not known for high cap rates.
The best aspects about this condo is the community. The complex is well maintained by the owners. Its finances are in tact and the community takes pride in the complex. As the years pass, this condominium will continue to attract residents and buyers due to its location and that their are no major risks in purchasing.
When buyer’s contact me looking for condos, I can’t help but think of all the risks in buying a condo as opposed to a single family home. Thats not to say you should never buy a condo, but the possibilities for problems with condominium ownership seems infinite. However, there are complexes out there minimize that risk and are solid communities that hold value.
There are a number of thinks to keep in mind if you are shopping for a condo. The most important is the community. Are they paying their dues, attentive to the needs of the property, willing to pay increases for the necessary maintenance? These are the questions you should be asking yourself.
If you are thinking of buying a condo and you see deferred maintenance and very low HOA fees that are not consistent with other complexes in the area of the same age and size you should ask yourself a very important question. “Do I feel confident that the other owners in this complex are going to be willing and able to address these maintenance issues?” If the answer is no, don’t take a second look.
Be aware that you do not own the condominium, you have a shared ownership and that ownership is only as good as the commitment of all the owners who make up the community.