Is the Condo Boom A Good Thing?

In recent times the Real Estate market has been faced by an unprecedented condo boom. Home ownership is an attractive option when compared to renting out. Investors get to see a decent return on their projects while eager buyers gear up towards long term ownership. Is this boom as rosy as it appears or is there a hidden cost all bundled up in the deal?

Business growth

Investing in a condominium unit is a good venture over the long term. Taking out a loan makes economic sense. Each repayment on the borrowed funds is a step closer towards being the homeowner of a decent place. Once the loan has been fully repaid there is the option to resell the property after a huge appreciation has been realized.

A vibrant real estate sector is beneficial to many different players all at once- financiers, property developers, investors, potential home owners. The overall impact will be felt across the board with sector players such as contractors and real estate agents all soaking up the benefits.

Environmental impact

A condo luxury unit comes with its own distinctive style. Constructing it has a negative impact on the environment. Air conditioning, heating and lighting, power consumption on a large scale are some of the direct causes that will cause some unwanted effects over time.

Constructing a condo complex takes up many natural resources all at once. Steel, concrete and timber are all extracted from the environment to put together these luxury units. Despite the efforts made to transform to green buildings the overall impact is on a downward scale.

Urban settlements also require up plenty of water to keep things running. This usage bears heavily on the natural water table which continues to fall leaving the natural ecosystem more and more arid.

Apartment quotas

High end residential units are a much welcome privilege that everyone aspires to have. Demand for these units is insatiably high causing the prices to skyrocket as more people seek out decent urban dwellings.

Relevant authorities authorize housing developments such as condos depending on the location listed by the applicant. The central CBD Real Estate attracts pricey commitments to own and much more to develop. This scarcity ends up pushing demand well over availability which is detrimental to potential homeowners with the ability to purchase.

The rate of growth each year can be real issue as structural and engineering considerations translate to more time required to construct these apartments.

Maintenance

Modern condos need regular maintenance to keep the property in mint condition. Any issues require prompt action and this may gobble up monies in regards to service fees and other related charges. Cost burden of top tier home systems keep has to be borne by the owners or the association responsible for its day to day running.

Prime apartment locations are a much sought after fixation. In order to enjoy the best living quarters it is advised to weigh out all the costs of keeping up such a place.

With the right kind of legislation and active efforts to live sustainably a compromise can be carved out.