The condominium became a popular concept back in the 1960's as an upscale, trendy community apartment building that offered individual ownership of each apartment. Until then, multiple family units were owned as a single dwelling but rented or leased out in units. The Fair Housing Act of 1968 provided for individual ownership and mortgage insurance on each family unit in multiple-family buildings and thus, the condominium, as a viable real estate investment was born.

The recent real estate boom saw an increase of more than 850,000 new condos being built nationwide. While they appreciated at a slower rate than single family dwellings between 2000 and 2002, according to NAR statistics (National Association of Realtors), condos actually appreciated 32% more than single family homes from 2002 to 2005.

So should you invest your money in a condo? Will it hold its long term value? Will it appreciate at the same rate as a single family dwelling? Let's look as some factors.

While location is important in all real estate, it is more so in the value of a condo. Typically, condos that will hold their value and increase independently of single-family dwellings are located in resort areas, particularly on the water or with a water view. Also, urban areas in larger metropolitan cities have become trendy as more and more people who buy are young professionals who work in the urban area and want to live there.

The real estate market is cyclical. When the market is rising faster than builders can accommodate, any property will gain in value. But beware. That's most always a false value. All markets that 'bubble' will eventually burst, and depending upon the severity of the adjustment, condos may be the hardest hit because they're the first ones tied directly to the economy, i.e., resorts and new urbanization or revitalization efforts.

Name recognition can also affect the long-term value of the condo. National and international architects and entrepreneurs can demand high dollars in resale value. A condo that carries the name of someone like Donald Trump will command more dollars than one built by John Doe.

Amenities are a significant consideration in the long-term valuation of the condo. Today's buyer wants luxury without the maintenance and developers are listening. In addition to common areas like swimming pools and work-out rooms, many high-end condos offer personal services such as valet parking and housekeeping. Many have social directors who provide a wide array of activities for the owners.

The ratio of owners versus tenants will affect the resale value. The higher the rental occupancy, the lower the resale value.

As long as the American lifestyle continues its trend toward urbanization and convenience, the value of a condo should hold steady. It will be affected mostly by the health of the real estate market in general. As long as the market stays healthy, the value of a condo should remain strong.

If you're smart and do your research, your condo can be a sound investment that can bring you a lifetime of happiness.