If you’re a first-time home buyer, it can be difficult to locate an affordable home that meets all your needs. In case you’re tired of a rental or have difficulty locating a suitable home, a condominium might be the way to go.
Condominiums are usually cheaper than homes and provide considerably greater independence over renting. Furthermore, condominium ownership allows you to accumulate equity, which you can direct towards a down payment on your subsequent property. If you’re wondering whether to invest in a condominium or home, here’s what to consider.
Definition of Condo vs. Home
A condominium resembles an apartment and is in a shared complex or building. In terms of size, it’s smaller than a house and this type of housing is popular among first-time homebuyers, investors, and downsizers.
In this housing type, a homeowners association maintains the building’s exterior and the common areas, for instance, swimming pools and parking garages.
On the other hand, a home is a free-standing residence that comprises four external walls that aren’t joined to other residential structures. You’ll find it on a lot with a front or back yard. In this housing type, you own the land on which the house sits and other structures such as a detached garage.
Pros of Condo Living versus Home
Amenities
When it comes to condo living, owners have a higher likelihood of accessing a range of amenities without worrying about maintenance. This means that common areas such as pools and parks might be accessible if you reside in a condo community.
Less Maintenance
Although condo owners must cover the charges for maintaining common and external areas, they don’t have to worry about upkeep, unlike homeowners who have to deal with lawn maintenance, servicing furnaces, AC units, or other types of damages. In condos, a maintenance team is responsible for handling maintenance.
Affordable Insurance
Condominiums are frequently cheaper to insure than homes. After all, homeowners must insure their homes’ interior and exterior. On the other hand, condominium owners only need to protect their home’s interior.
Instead of paying homeowners insurance, you’ll simply have to pay renters or condo insurance when it comes to condominium living. You find that the condo association probably has a master policy to cover your home’s exterior.
Cons of Condo Living vs. Home
Less Freedom
A major drawback of condominium living is that you’ll have considerably less independence than homeownership. Condo associations typically have regulations and rules, which you must abide by while residing in the community. For instance, they might not permit pet ownership.
On the other hand, you don’t need to worry about pet limitations with homeownership. If you’re seeking more independence as a homeowner, you might want to consider condominium living.
HOA Fee
Residing in a condominium means you’re part of an HOA, so you’ll incur HOA dues. Furthermore, extra condo fees might exist to access shared amenities such as a community pool. Such extra expenses could accumulate over time, causing considerable inconvenience.
It’s worth noting that certain condo communities might lack shared amenities you’d want to use. This means the perk might not apply in particular neighborhoods.
Less Privacy
Condominium living means you’ll enjoy less privacy than you would in a normal house. You might need to share walls with noisy neighbors and common spaces such as gyms or pools. When it comes to a single-family house, you might have a pool to yourself. This means you’ll enjoy some privacy in a home.
Final Thoughts
Everyone’s circumstances are different, so condominium ownership isn’t necessarily worse or better than homeownership. It simply depends on your stage in life and your needs. If you’re in the market for property, but don’t know where to start, consider this list.
For more information on whether to buy a condo or home, contact us at Apartment Agents or leave a message.