12/16/24

Are condos a good investment?

Are condos a good investment specifically when you compare them to single family homes? I mean, are they worth the actual investment? Should you have bought one 10 years ago? What is it worth now? We're gonna break it all down. So, in California, if you look 10 years ago, the average condo was worth $385,000.  Today, the average condo in all of California, that's condos, town homes, is worth $695,000. That's an increase of 80%. Not bad for 10 years. Now, single family homes in California 10 years ago, you're gonna pinch yourself when I tell you $421,000 was the average price for a single-family home 10 years ago in California.  Today, it's $825,000. That is an increase of 93%. So, condos 80 some percent, single family homes, 93%. And I get it, this is just 10 years and it's the entire state of California, which you know, real estate is all local, right? You can't compare Bakersfield to San Mateo, but that said it's pretty clear that condos do not hold their value as much as single family homes do. And that's not news because a couple of things can go wrong with condos. Your HOA can get persnickety. Right. They can jack up the rates or they can make things harder to sell. Sometimes it's tough to get financing. A lot of things are out of your control with the condo. Maybe they stop giving you the ability to rent it, which in fact brings the investment value down. So single family homes are a little bit of a safer bet. They appreciate more than condos do. It's not to say that condos aren't a good investment, but they're not the same as single family homes at least in California and at least in the last 10 years. If you have questions about where to put your money in real estate, just message me and I'll help you out. Thanks for watching.

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