High Rise or High Risk: The Appeal and Drawbacks of High-Rise Condominiums

High-rise condominiums in metropolitan areas have become popular for several reasons. They are chic, comfortable and often serve as a status symbol. Still, such properties are very pragmatic for those who need to commute to nearby urban areas. Purchasing such condominiums can be a challenging task and several factors should be taken into account before one is able to make an educated decision. So, what are the benefits and drawbacks associated with the typical high-rise condominium?

One of the main advantages of a high-rise condominium is that there are more available than ever before. This was brought about by the fact that a greater number of professionals and their families are seeking residences in convenient locations. In some cases, prices can be substantially reduced.

high rise condo

It should also be mentioned that a high-rise property can be a lucrative investment if it is found in a valuable location. If it lies close to major transportation hubs, such as trains and buses, it is likely that its original value will increase over time. Those who are looking for a condo for sale or for rent as a long-term investment should keep this in mind.

On-site amenities, such as community pools, a private security force and gated gardens are all very common in typical condominium properties. Those with young children must always consider these features before making the final decision.

High Rise and High Risk?

Those who are searching for high-rise properties still need to address a few potential pitfalls before signing the contract. First, it can be very difficult to rent out such a property. This ultimately depends upon the agreement stated within the rules and regulations of the property owner’s association.

While there is indeed a possibility to accrue wealth in long-term investments, much research has pointed out that the values of low-rise and standalone condominiums experience greater capital gains over time. Nonetheless, this depends upon the specific property in question, as well as the year it was built and its location.

As high-rise condominiums tend to be part of a larger complex, the levels of maintenance should also be determined. From regular upkeep issues, to fixing any sudden problems when they occur, make sure you get the value of your purchase with top-notch maintenance.

Corporate fees are a final factor that should be closely examined. In general, a larger complex will naturally require more fees to be paid on a regular basis. Note that these fees may not be necessarily included within a standard mortgage package, so read the fine print. Those on a rather fixed budget should pay careful attention to the amounts that are required. This is particularly the case with older buildings and properties.

High-rise condominiums are extremely popular within metropolitan areas. With a growing number of individuals and families opting for such residences, it is always a good idea to appreciate these various considerations before sealing the deal.

Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

2 responses on “High Rise or High Risk: The Appeal and Drawbacks of High-Rise Condominiums

  1. I agree. High rise condos are popular today. In fact, places such as metropolitan areas are surrounded with high buildings and condos are one of it. But there are also some condominiums which are not totally high, but wide enough to comfort you after a long day.

  2. Investing money in a condominium is not wise.

    Years before I was considering to get one, but when I learned from a friend of my husband that owning a condominium entitles you to own a piece of “air space”, I got turned off. I also learned that a condominium has only a lifespan of 50 years, not something that I want to pass on to my children or my children’s children.

    50 years lifespan means after 50 years, the owner of the condo may not have the care anymore to maintain or fix building issues. Just like any house, anything that is built using concrete (and all) needs maintenance at least every 5 years. Consider natural events, like rain, movement of plates, etc. All of these may affect the sturdiness of the building. A high-rise condo is harder to maintain, especially if the introductory price of their rooms are cheap and their tenants are eventually shocked because of maintenance fees they are required to pay on top of their 20 year promise.

    Plus, if the owner of the condominium decides to change the owner of the estate to a private or government financial institution, you will end up being slapped of the fact that you basically own “air space”. There’s no such thing as air title, in contrast to land title if you own a lot. My husband’s friend was offered an amount, probably only a fourth or half what they paid to get to live in that condo. They were asked to move out because of the dangers of living in a more than 50 year old building.

    Owning a condo, or a pad, sounds glamorous and makes you appear independent and adult. But saving that 1 million to 4 million pesos (instead of earning and paying that for the condo) makes you a truly rich millionaire. Frugal, simple life, but hey you are financially secured for life.

    Unless 4 million is only one sixteenth of what your family earns, by all means…

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