Our textbook made it clear that "a condominium apartment buyer generally secures a loan from a lender in the home mortgage field, similar to a buyer purchasing a single-family detached house" (Editor, D.S.P.D.E.J., 2019, p 135). However, to the lender, each apartment unit within the building is viewed as a house. This protects the lender should a tenant within an apartment become in default they can issue an eviction notice or claim the property within the apartment as collateral against any monies due. Financing for condominiums is also favored by loans such as FHA and VA because of the housing benefits they offer to particular social classes.

The social classes that need a condominium are typically low- or middle-class families such as single mothers or single adults. Condominiums are also a major trend in large cities such as New York, which also contribute to the ever-growing need for these large single-dwelling buildings or houses in the sky as our textbook stated. "Affluent parents are buying or helping buy apartments for their children, ranging from undergraduate students at New York University to working, married adults in their 30s and 40s" (King, 2021, pp 18).

Part of a condominium is also the ability to timeshare. Often time-sharing is used for vacation homes as it gives the option for many families to own a place and utilize it for a particular time throughout the year. Time-sharing condominiums also allow for their owners to visit other locations at a discounted rate or sometimes even free if they attend one of the sessions on-site.

References

Editor, D.S.P.D.E.J. (2019). Essentials of Real Estate Investment Twelfth Edition (12th Edition). Kaplan Professional Education. https://libertyonline.vitalsource.com/books/9781475485417

King, K. (2021, October 19). New York Housing Demand Surges After Pandemic Slowdown. WSJ. https://www.wsj.com/articles/new-york-housing-demand-surges-after-pandemic-slowdown-11634644800