2022 Boise Idaho Real Estate Blog

Is condominium living right for you?

Main Boise Home Builder

Condominium Living Offers Convenience, Amenities and a Good Return on Your Investment

Is condominium living right for you? According to the National Association of Home Builders (NAHB), condos are now an important housing option for home buyers nationwide. At the height of last year’s wave of new condominium construction, condos represented nearly half of all new multifamily building, with that rate forecast to stabilize at about a third of the multifamily market by late 2008.

Why are people choosing condominium ownership? Many home buyers find that condos offer advantages that a traditional single-family home doesn’t.

Many empty nesters thinking about enjoying their freedom now that the kids are out of the house are purchasing condos. Active seniors—especially those who once lived in urban areas—are returning to downtown areas, leaving behind the larger house, yard maintenance and the daily commute. If you fall into this category, you may want to opt for a smaller, easier-to-manage condominium home that’s not only close to your job, but also near shopping, dining and entertainment.

Baby boomers anticipating retirement frequently purchase condominiums or townhomes in areas offering a favorable climate, a variety of recreational opportunities, cultural attractions and easy access to good medical facilities. Some purchase condominiums or townhouses near their grown children and grandchildren. These may be primary residences or secondary homes. Keeping a second home tidy and undisturbed when you are not there can be a hassle. However, when you purchase a condo most of the unit’s upkeep is covered by your monthly condo fee, whether you are there or not.

Young people may find that purchasing a condo as their first home can be both more financially attractive and more feasible than you might have anticipated. Even though rates have risen slightly, mortgage interest rates are still near a 45 year low. As I have noted in previous blogs, most of the rapid unsustainable appreciation in the price of houses in the past few years was the result of increases in the cost of land. An NAHB study on construction costs for single-family homes in 2007revealed that the raw land cost represented 10% of the cost of a new home. Because condominiums and townhomes projects typically are higher-density developments (more living units per acre) than single-family detached home projects, the raw land cost is spread over more units. For this reason, the cost of a condominium is generally less than that of a single-family detached home of similar size and quality.

They may consider the purchase as a step towards affording a more substantial residence later. Many of today’s condos are located in downtown in neighborhoods where young professionals congregate.

A condo can also be a good stand-alone investment. Many families find that it makes financial sense to purchase a condo in a university community like Boise as an investment – one that can be used by their child during his or her college career, then rented or resold after graduation. They could purchase a smaller used single family home, but multifamily developments built to be sold as condominiums often feature value-added amenities and services not found in older existing neighborhoods.

I don’t know about you but I have can think of much more enjoyable ways to spend my evenings and weekends than mowing the lawn, pulling weeds, or cleaning the gutters. That’s why I chose a condominium. When you invest in a condominium, many everyday maintenance activities are no longer necessary, and the few that are generally are covered by your monthly condo fee.

Are you empty-nesters or soon to be empty-nesters? Is your current home larger than you need or will it soon be? Are you retired or nearing retirement? Do you travel frequently on business or vacation? Are you busy professionals who value your free time? Are you a younger buyer looking to purchase their first home? Do you have a child who will be or is a student at BSU? Would you rather spend your evenings and weekends relaxing than mowing the lawn? If you answered yes to any of these questions, condominium living might be a good bet.

If you think condominium living might be right for you, I know of two very nice new condominium units in Hidden Springs with more on the way. You can view them both right here on BuildingCredibility.com

 
Posted by Chuck Miller at 4/9/2008 1:39:00 AM

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