We love helping unite people with their first home. But in LA’s competitive housing market, not everyone is financially prepared for homeownership. Does that mean the door to real estate investment is closed to them? Not exactly. The city’s inventory of condominiums provides a means of securing your own place while avoiding the hefty investment of a freestanding home. But before you go sifting through Los Angeles condos for sale, it’s important to recognize the unique benefits and consequences of condo ownership. To some, they’re the perfect solution. To others, they’re not the best investment. So, where do you land?
Understand What You’re Getting from a Condo
Before you decide whether a condo is right for your situation, you have to fully comprehend what defines a condo. A condo, short for condominium, allows you to purchase an apartment, owning it outright as opposed to renting it. Frequently, you’re also expected to cover a portion of the costs for the shared responsibilities of the condo complex. You’ll find a diverse variety of Los Angeles condos for sale at any given time. These include:
- Lofts
- Low rises
- High rises
- Suburban condos
Pretty Much All Los Angeles Condos for Sale Include HOA Fees
No matter which type of condo you choose, you can expect to be charged a significant homeowners association (HOA) fee. HOA dues are designed to:
- Fund building maintenance
- Enforce regulations
- Finance ongoing amenities.
For many people, those amenities are what attracted them to seek Los Angeles condos for sale in the first place. Amenities often include:
- Swimming pools
- Clubhouses
- Gyms
- Gardens
Additionally, they can include onsite meals, concierge services, and more. Though HOA fees are most often associated with amenities, the location of your condo will weigh heavily on the steepness of those fees.
You may not expect such an astounding lack of control over property you own, but holding the title to a condo also affords a say in condo politics. For some, this is reassuring. For others, it may just sound like another unwanted responsibility. But voting can extend to determining how HOA funds are allocated for repairs, expansions, and other building matters.
The Importance of Land in an Investment
Yet the real trick to understanding whether a condo is right for you lies in a big misconception many people have about real estate. These people believe that homes appreciate in value. But this is an oversimplification that’s not exactly correct. Like most tangible, man-made creations, homes actually depreciate with time. So why is real estate considered such a sound investment? Because every structure is built on land. And it’s the land that appreciates in value.
So, if land appreciates and structures depreciate, what does this mean for condos? When you purchase a condo, you’re making an investment in the building itself, not the land. However, the land a complex stands upon can still influence a condo’s resale value. In that sense, you’re making an indirect investment. So, when browsing Los Angeles condos for sale, it’s more important than ever to consider location. The building will fall into various states of disrepair and renovation. And with these fluctuating states, value will rise, and fall, and rise again. But land has lasting value.
However, if this frightens you away from condo investment, here’s some comfort. According to the National Association of Realtors, condos do appreciate in value. This likely has a lot to do with the land condos are built on, but the conclusion remains the same. Back in 2017, they were even appreciating faster than single family homes! So, don’t make the mistake of underestimating a condo’s investment potential!
Make Sure Your Condo’s View is Something Special
Likewise, one of the most important factors to consider when browsing Los Angeles condos for sale is the view a specific unit offers. Since you’re not purchasing land when you buy a condo, you’re basically buying the square footage of the unit and its perspective. That’s why condos on higher floors go for higher prices than those on lower floors. Again, the condition of buildings fluctuates. But that view will last your lifetime. So, if resalability is part of your plan, only consider the Los Angeles condos for sale that offer the most breathtaking views.
By now, it should be pretty obvious why condos are so popular among older people looking for comfort but with no thoughts on future moves. But this doesn’t mean a condo is an unwise investment for a younger person. Los Angeles condos for sale offer one of the most affordable means of entering the housing market. Just make sure to consider units with gorgeous views and prime locations if you’re considering the investment strength and resale value of your purchase.
