Ask most business people and they will tell you location is an important aspect of their success. The same goes for purchasing a condo you want to sell later. If you want your property to retain its value, here are two location issues you want to watch out for.
Single-Employer Cities
Purchasing a condo in an area where employment prospects are good can definitely help ensure your home stays valuable, because there will typically be a constant influx of people who need places to live. But be wary of buying a condo in an area that's supported by only one or two major employers, because the entire economy of the area could collapse if those employers fail or leave the city. Detroit is a good example of this. Once the fourth largest city, Detroit has been in a steady state of decline since the industry it depended on for sustenance began to automate jobs and companies moved factories to cheaper areas.
Conduct employment research into the area to determine where all the jobs are. You can glean some information about a city's employment prospects online. Talking to a representative at the local chamber of commerce may also provide some insight into the number and diversity of employers in the city.
Historical Districts
There's no denying living in a historical district can make your home seem more magical because of the area's deep connection to the past. However, the dream of owning property in this type of area can quickly turn into a nightmare. That's because, to maintain how the area looks, the city and homeowner's association will enact a number of laws and bylaws (respectively) that significantly limit what you can do with your place.
For instance, you may be restricted on the type of windows you can purchase because those windows must match the exterior design of the building. This means you may not be able to make any renovations to the condo that would help increase its value. Additionally, while a historic designation may boost home prices in the short term, those prices may remain flat or increase very little in the years afterwards because of all the restrictions.
Location should play a big part in your decision to buy condo, but it shouldn't be the only consideration. Contact a real estate agent in your area to discuss all the concerns you may have and challenges you may come up against when looking at condos for sale.
Share