Originally posted by: DeMeo
Buying a condo is often the only option for some people due to the high cost of housing. I agree that it's much like renting, however, you do build equity. Condos do appreciate and if you live there for a while you can get some tax breaks on your mortgage and eventually sell and get into a house. It's better than just throwing away rent money.
		
		
	 
I hate to buck the conventional wisdom, but whether or not you are "just throwing away rent money" depends on the differences between rent and zero-down PITI mortgage payments in your area.  Quite often of late, those differences are so high that the homebuyer is losing money even with the tax breaks.
As for building equity, quite frankly the only way to build equity is to pay down the mortgage.  Appreciation looks nice on paper, but as all the other homes in the market are also appreciating, the homeowner will not be able to sell the property without transfering all of that equity deprived from appreciation into his next house.  Net gain = zero.  Once, the benefit was to appreciate enough equity to get below the magical 80% LTV number (and hence, no PMI), but the easy availability of 100% financing has all but negated that benefit.
Sorry, I'm just against owning a condo with strict (and usually expensive) HOA's.  It's very little different than renting, and sometimes worse.