I agree with svelte, here, as it applies to CA. In buying an SFR in CA, you actually own the land your dwelling sits on. Like it or not (and regardless of what your local assessor says), THE VALUE OF THE LAND is what boosts property value in CA coastal counties. The closer to the coast your property sits, the higher your land value is in relation to your overall property value (market-wise) REGARDLESS of what the assessor says on your tax bill. This is ESPECIALLY TRUE for those properties situated within TWO MILES of the coast!
In a condo you own which is not a townhouse or a PUD, you don’t own ANY land (regardless of what your tax bill says the “land value” is). In this case, your “land value” of ownership is minuscule, due to having another condo above you and possibly below you as well. Your “ownership” portion of land is essentially the total lot size of the complex divided by the total number of units in the complex (technically speaking). But practically speaking, an individual owner in this case “owns” no land. They “own” their interior walls but nothing more. Their own “interior walls” could be subject to plumbing pipe bursts from their neighbor’s walls. Essentially, an “owner’s” market value in a true “condo” is inexorably tied up with three caveats:
1. the quality of the condo builder’s work;
2. the condition of the HOA’s financial statements, as well as the HOA’s ability to enforce the CC&R’s to non-dues payor-owners into paying their dues; and,
3. the timely payment of dues by ALL other owners’ in a timely manner in order to maintain the condo assn’s schedule of repairs and maintenance.
In spdrun’s area (Manhattan, NYC) condos (“coops,” in NY-speak) … the RULES are MUCH different than CA and there are no alternatives to this type of lifestyle. With NYC’s inclement weather at least 7 months per year … YES, it absolutely DOES MAKE SENSE to buy a walkup or co-op where the individual homeowner doesn’t have the authority to groom the sidewalk or easement in front of their dwelling … that is … if they want to live in Manhattan.
Different strokes for different folks (located in different regions of the country).
