The Lake Conroe area has many condominiums along its shore. Some people choose to live in them full-time. Some use them as their personal vacation home. Others invest in condos for rental income. Regardless of the way that you use them, are condos a great investment? Let’s explore this question today and see.
Current Data
Before we begin, let’s take a look at the current data for condominiums. In the Lake Conroe area for the past 30 days, there are 67 condos on the market. The median price is $185,000. In the same time period, 12 condos were sold for a median price of $171,200. From this data, you can see that people are buying and selling condos. Additionally, you can see what price tags you can expect to find for a property.
Appreciation
Do condominiums increase in value? Condos do appreciate. However, they typically do not appreciate as much as single-family homes. According to Ramsey Solutions, condos increase in value at 3% compared to the 5% of single-family homes. To be fair, location plays a large role in the appreciation factor. Lake Conroe does draw people. Therefore, you can expect your condo on the lake to increase in value every year, but the percentage may vary.
Owners vs. Renters
When considering a condo, take a look at how many owners live in the condominiums. A higher ratio of owners to renters typically indicates a good investment. According to Ramsey Solutions, a higher owner-occupancy rate also helps you get more favorable financing to purchase the property. Does this mean that you should not consider a condo with more renters? Not necessarily. However, take the ratio into consideration.
Home Owners Association
Most communities around the Lake Conroe area have a Home Owners Association (HOA). The HOA for condos can make or break your investment. One question to ask is “Are they taking care of the property as a whole?” Condos share roofs, siding, parking lots, green spaces, and shared amenities. Are they being repaired and well-maintained? Another question is “Is the HOA too invasive and picky?” Ideally talk to residents to find out if the HOA nit-picks everything.
Also check into the HOA fees and decide if you can afford to purchase and keep the condo. HOA fees are part of the cost of living in a condominium.
Hopefully this post has given you good tips for evaluating the question—are condos a great investment. Regardless if you want to live in it full-time, use it as a vacation home, or rent it out, condominiums can be a profitable investment, especially on Lake Conroe. Choosing which one to buy takes patience, research, and wisdom. Hiring an experienced agent like Mike Goins can help you cut through the information. Call him today and begin the process of investing in a lakefront condo.