by Leslie Schwab

Created on: September 03, 2009   Last Updated: September 04, 2009

Home ownership has been a goal of most Americans since the founding of our nation. It has been a yardstick for measuring one's personal success and achievement. Owning a condominium is a form of home ownership that may appeal to those who aren't interested in gardening, mowing lawns, or performing any other exterior home maintenance. As an investment, however, owning a condominium leaves much to be desired.

For one thing, the appraised value of many condos has been falling like a rock over the past two years in many parts of the country. One of those areas is South Florida, where this author resides. I have seen the value of my three bedroom condo drop by over sixty percent over the past two years! That is due to the fact that a large number of condo units are in foreclosure, or in the foreclosure process. There is also a huge supply of condos on the market. Many new developments are mostly empty. Miami Beach is loaded with empty high-rise, oceanfront condominiums.

A second problem lies with the condominium associations that maintain the properties. Monthly association fees have been climbing on an annual basis. Units in retirement and golf course communities require initial membership fees that cost tens of thousands of dollars, on top of monthly maintenance fees that can easily surpass $500. These fees are in addition to the monthly mortgage payment. Because of this, many condo owners are having a difficult time selling their units.

A third issue is tied to assessments. The costs of repairs and improvements made to the condominium complex are equally levied upon each unit owner. These assessments are to be paid in full, and are often set with little advanced notice. For example, if the roofs are repaired or replaced, the assessment to each owner can cost thousands of dollars. Unpaid assessments will lead to liens placed on the owner's unit, which could result in foreclosure of the unit, so the condo association can recover the assessment.

Then, there are the rules and regulations that each condo owner must obey. "Condo Commandos" are unit owners whose sole mission in life is to ensure every owner adheres to these rules, or risk being fined. For example, some developments have pet restrictions; they may only allow pets that must weigh below a number determined by the condo association. If one's pet exceeds that weight limit, he or she would either have to get rid of the animal, or face fines and legal fees.

On the surface, condos seem to be a great option for those who don't want to be bothered with home maintenance. That convenience, however, may be offset by other headaches. Mowing the lawn of your own backyard may not be so bad, after all!

Learn more about this author, Leslie Schwab.
Click here to send this author comments or questions.