Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [November 2004]
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Is a Townhouse or Condo the Right Investment for You?
If you have watched the local real estate market the last few years you know that a number of new town house projects have been built in our community. Town homes are more affordable than single family homes, making them more attractive to first time home buyers. Town homes and condos are gaining appeal for second home buyers who are looking for a weekend get-a-way to Flagstaff and for parents looking for a place that their kids can live in while they attend NAU.
In some cases a town home or condo may be a better investment than a single family home. To ensure that you make a good investment, review what your objectives are for purchasing the unit and what location would work best for you. Is it going to be a second home? Will it be a place for your kids to live while attending school? Is your objective an investment property that you plan to use for a rental? Will it be your home? Town home values have appreciated significantly during the past several years so any plans to purchase should include the possibility of appreciation or depreciation.
The difference between a condo and town home is sometimes a bit hard to discern. The best definition I have for a town house is that it is a type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his or her unit, but the buildings and common areas are owned jointly with the others in the development or association.
When you purchase a condo or townhouse you automatically become a part of a homeowner's association to which you pay dues. The dues cover the cost of maintaining and insuring the common areas. The complex where the property is located is governed by CC&Rs (Covenants, Conditions and Restrictions), which restrict your ownership rights. Read and understand the CC&Rs and any other pertinent governing documents before you complete a purchase.
Several new town home and condo projects are either under construction or on the drawing board in Flagstaff. We will soon be able to invest in one of these projects. You also have the option to buy a re-sale unit in one of the existing complexes in our community.
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