Midtown Houston is a hot spot for condominium living, and for good reason: this bustling urban atmosphere enjoys a close proximity to downtown Houston and its business district, and is also close by to a nearly endless array of shopping, dining, cultural and entertainment destinations.
The real estate in Midtown Houston provides a beautiful selection of upscale condominium homes, which are particularly ideal for young, urban professionals, small families and even empty nesters. However, with the struggling, national economy and the decline in home values, many would-be homebuyers are thinking twice about investing in a condominium home.
Make no doubt about it: purchasing a condo in Midtown Houston is different from purchasing a single-family home. As with anything else, there are a number of opportunities and challenges that exist for homebuyers who are interested in purchasing a condo property, not only in Midtown Houston, but across the country:
Challenges:
- Large down payment – Most lenders now require a much higher down payment for a condominium home than they would for a single-family home. This is due, in part, to a declining condo market throughout most of the country. Although Houston didn’t experience the boom and bust like many other markets did, it is still feeling the effects of tougher lending practices by lenders on condominiums.
- Tough financing – Many of Midtown Houston’s condo residences would be categorized under a “jumbo loan” because of their price; and, unfortunately, many lenders are now placing very strict restrictions on jumbo loans. In some parts of the country, such as Florida, many lenders have almost completely abandoned jumbo loans.
- Homeowners Association Fees – Along with a monthly mortgage payment, living in a Midtown Houston condominium also means paying HOA fees, some of which can be quite expensive.
Opportunities
- Excellent appreciation value – Because of the hot real estate market in Midtown Houston, condos here are likely to see impressive appreciation over the next few years, once the market has begun to rebound.
- No maintenance/carefree lifestyle – Often times, one of the biggest benefits to condo living is that maintenance is virtually eliminated. As a result, condo homeowners can enjoy a more carefree lifestyle.
- Amenities and Services – Most condo buildings boasts a great deal of excellent amenities and services, from concierge and porter service to swimming pools and fitness centers.
Tags: Midtown Condos