Somebody I know is strongly considering purchasing a townhouse. It's two stories, 3 bedrooms 1 upstairs 2 downstairs with a sliding glass door downstairs and a deck upstairs with a two car garage for roughly $189,000.

NOw lets say 15 years down the road that person decided to sell, would it be profitable?
Or would selling it at anytime all be profitable, or is there no way to tell.

Catty used to be in real estate and believes condos are a little harder to sell than regular houses for several reasons, one of the prime ones being that there are often "community rules" which make it uncomfortable to live in. Another is proximity to neighbors; no yard or outside storage space, substandard parking, etc. Look into this deal before you move on it. Is it being sold through a realtor? Press him for details. Ask if the property has been appraised (it should be, before you buy, but if the seller balks, you may have to pay for it). Don't offer more than the appraisal. If there's any kind of a contract you have to sign, have it examined by an attorney before you sign it.

About that sliding glass door: thieves and other miscreants love those things. Some can be taken clear out of their track from the outside - I did it once when I locked myself out.

Step softly, and keep your eyes open.

Catty (who knows people who suffered in deals like this)

Ron -- as Catty mentioned, condos are often more difficult to sell than single family homes -- it just depends on the market conditions when your friend decides to sell.

In my opinion, a person can not go wrong by investing in a home rather than pay rent to live somewhere. There are many tax advantages to being a homeowner versus being a renter. The homeowner gets to write the mortgage interest off of their taxes each year. With time, a homeowner can also borrow from the equity that has accrued in their home. For example, when I needed a new car, I used a home equity loan rather than a car loan. I am able to write the interest of my home equity loan off of my taxes each year and my interest rate was lower than that offered by car loans.

The point is, there are many advantages to being a homeowner. On the otherhand, there is also responsiblity, repairs you make yourself, and the risk that your property can decrease in value for some unknown reason.

I think that if your friend can afford to purchase the townhouse, becoming a homeowner would be a wise investment. I would just be sure they feel comfortable with the community they are purchasing in, be on the lookout that there are no plans for something in the area that would reduce the value of the property (for example, is a landfill being built nearby? Is a prison being proposed to be built in the immediate area?) Stuff like that which could reduce the appeal of the community to future buyers.

Good luck to your friend in whatever decision they make.

I'd just like to point out that the question concerned a town house not necessarily a condominium. I live in a town house that does have a yard, a carport, a garage, four bedrooms, etc. The architecture is unique and when one of them goes on the market, it sells in days with several potential buyers bidding above the asking price. Just keep in mind, a town house needn't be a condominium.