Buying A Condo In A Half Full Building: Good Idea?
I have lived in a condo for the past few years and I have to say I like it. I still want my own house one day, and I have no serious plans of buying a condo but I am very much open to the possibility. But what about buying a condo in a building that is half full? I actually have a friend who is considering renting to own a condo. His concern is that around half of the units remain unoccupied, despite the fact that the building has been operating for more than a year now. Is it a good idea to buy a condo under such circumstances?
There are some things to consider here. One, you have to realize that the amenities in the building do not come for free. Association dues and other charges cover these amenities. In the beginning, it may not seem much since the developer usually covers these charges. In effect, they subsidize the costs. In the long run, however, the developer usually pulls out, leaving the upkeep to the residents of the building. It does not take a rocket scientist to figure out that the more people who live in the building, the lower the costs. In the same way, the less people occupying the building, the higher the costs for each resident.
Considering this, it really is up to you if you think that it would be worth buying a condo in this situation. Perhaps the units will sell later on. Perhaps not.
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