Graham Stephan Tells People To Stay Away From This Type Of Real Estate Investment

Core Insights - Real estate investor Graham Stephan advises against investing in condos, labeling them as poor investments compared to single-family homes [1][2] - The returns on single-family homes are significantly better than those on condos, with Stephan stating that single-family homes win nine times out of ten [3][4] - Current market conditions favor renting over buying, particularly in the Las Vegas housing market, where home prices would need to drop by 35% to 40% to match current rental costs [6][7] Group 1: Investment Comparisons - Condos are considered terrible investments by Graham Stephan, especially when compared to single-family homes [1][2] - The gap in returns between condos and single-family homes has widened over the years, with single-family homes consistently outperforming condos [2][3] - The ownership of land is a significant advantage of single-family homes, as condo owners do not own the land their unit is on [4] Group 2: Financial Considerations - Homeowners' association (HOA) fees associated with condos can be higher than monthly mortgage payments and can increase annually, while fixed-rate mortgage payments remain stable [5] - Current rental prices are more favorable than buying, with Stephan suggesting that renting is cheaper unless a substantial discount on home prices is available [6][7] - The preference for renting over buying is highlighted, especially in the current market, where potential buyers may face high upfront costs and ongoing expenses [7]