You have discovered that your current house is too big for you. He is seriously considering downsizing to a condominium. But is this a good investment idea for you? Are there any unusual fees associated with buying a condo that you should be aware of? We will try to answer those questions (and more) in this article.

Whether or not a condo is a good investment for you depends on a few factors. One is the price of the unit compared to other similar properties in the same area. Another is the current real estate market; particularly when it comes to condominium sales. If you buy a condo when the condo real estate market is booming, you’ll pay a much higher price for it. So if you have to sell it later and the market has crashed, you’ll probably have to sell it for much less money than you paid for it. Obviously, that is NOT a good scenario for you. One disadvantage associated with investing in condominiums is that if other units in the same complex become foreclosed; even if YOURS DOESN’T, the value of YOUR unit will continue to drop. Not; this is not fair, but unfortunately it is a fact that you must be aware of.

Another factor involved in determining whether investing in a condo is a good idea is the specific complex itself. Where it is located, the value of other condos in that complex, its proximity to shopping centers and employment opportunities. Also whether or not that particular complex is well maintained and has a great reputation for HOA/resident relations. If the complex HOA board is known to be difficult to deal with, you may want to avoid buying a condo there. Instead, move to another complex where the relationship between the residents and the HOA board is much better. You will be able to find such places. You do NOT have to put up with unnecessary hardship.

Some reasons you might want to avoid investing in a condo instead of a smaller home have more to do with the complex Board of Trustees (the HOA we just talked about). They may include a ban on unmarried couples living together in your compound. Others have strict policies against renting out their condo to other people. In any dispute, the HOA has power and you don’t. So if they decide they want to fine you, there’s nothing you can do about it. So if you don’t pay the fine, they can repossess your unit and/or even foreclose on it.

So what if you have difficult neighbors. You may have good neighbors, but not necessarily a given. In most condo complexes there is a mix. Some neighbors are nice, while others complain about everything they see. Not only can they make your life a nightmare, but if you want to sell or rent it, they can be a huge deterrent. Be sure to check with the neighbors in your condominium complex before investing in a unit there.