Condos and Town homes have been good investments for several years.  As Americans become busier and focus more on family life, (when children are present they seem more focused around child activities or on themselves when no children in the family) it has become more desirable to have a carefree, low maintenance lifestyle.  Condos and town homes fit these needs.  The desire in our busy lives to have the freedom for a lifestyle with less responsibility is attractive.  When looking at town homes and condos it is important to consider all the aspects.  The price of the home is important, but also important to the long term pricing considerations are the home owner fees, application fees, and taxes.  In addition if there are any special assessments planned by the home owner association.  The area I live in recently had 2 communities receive special assessments for capital improvements and as a result, those neighborhoods had quite a few homes go on the market, which made them difficult to sell and drove the prices down.  People who didn't have to sell withdrew them from the market, some are planning to realist later when the inventory isn't so high.  Some of the area condos and town homes have association fees of $90 to $270 with $200 a month being average.  It is very important to consider these additional costs when trying to buy a condo or town home.  The convenience is great and most have at least a swimming pool and many offer playgrounds, tennis or basketballs courts, some even have club houses and fitness rooms.  Convenient commuting also plays an important role in determining your best choice.  If buying a lower priced condo means you will commute further every day, with the price of gasoline it may not be the best choice.  If you get a 30 year fixed mortgage you will know what your payments will be, even if the commute is a little longer.  We don't know what gas prices will do in the future and even if no special assessments currently, they may have an assessment later for capitol improvements that exceed the amount set aside from regular home owner fees. 

Again, for people wanting to purchase condos or town homes, a look at the entire situation is very important.  When doing the financing, the mortgage companies will ask about how many units are owner occupied and how many are rentals.  If there are a large number of rented units it may effect mortgage rates.  Typically homeowners take pride in their homes and tend to take care of their investment better than a tenant might.  The management company needs to be professional and the buyers should have a professional home inspection, the same as they would for purchasing a single family home.  It is nice to visit the neighborhood at different times of the day and if possible speak to others who live there.  A condominium complex may have a very different atmosphere during the day when many people are at work, or there may be a lot of young children with parents home in the morning, than in the evening when they may be more people around.  In addition you should get a copy of the association rules early in the process of offering on a home.  There may be restrictions and it is important to be certain these will not be an issue to your lifestyle.  Some places allow pets, some don't.  Some you can grow plants in a container on your balcony or patio, but some that isn't acceptable. 

As an experienced Real Estate Sales Associate/Realtor I feel it is important to have a knowledgeable professional to guide you through this process.  It is more complex than buying a single family home due to some of the specific issues you face when living close to others.

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Subtle change in overnight real estate rates

30-year fixed rate at 5.76%

Mortgage rate info from Inman News on Thursday, May 03, 2007