There is a condo project in Portland, OR that has several units for sale with a catch. If you buy a unit that is priced under $105,000 and take advantage of a $2,500 grant, you will be bound by a covenant that limits the resale price to market value or an increase of twice the CPI, whichever is lower. While I don’t see this as much of a problem, especially when it’s a condominium, that I don’t expect to appreciate at the same rate of single family housing, some people might be locked into the mentality that your residence is another way to cash in.

The Portland real estate market has been appreciating at much more than twice the CPI for the last several years, but that certainly cannot continue indefinitely. $2,500 isn’t really all the much money to make a promise that might limit your future capital gains, but if it makes the difference for you to purchase a condo that you love, the convenant might help someone else purchase it later. The project is a live/work condo project in NE Portland, the website is at www.milepostfive.com.