4 Reasons to buy a Condo instead of a House.
Renting is up all over the nation, but for some, it’s not enough. If you’re ready to stop renting from a landlord, but you’re not quite ready for a house, a condo might be a good transition. Although there are always cons to consider in any real estate purchase, here are four reasons that you might enjoy a condo instead of a home.
1. Greater Freedom with Less Responsibility
This is perhaps one of the largest perks: A condo is perfect for those who want to purchase their own place and be out from under the thumb of a landlord, but who don’t want the responsibility of maintaining and fixing up a home. You’ll still be in charge of maintenance inside your unit, but things like yard work will remain a distant memory.
For John Goodman a New York-based PR consultant and condo owner for over a decade, this is what he loves most about his condominium. “I have not lifted a snow shovel or mowed a lawn in 12 years. It’s been marvelous,” he told U.S. News. “It was one of the best life decisions we’ve ever made.”
Generally, condominium owners contribute to a general fund that takes care of maintenance and care of common rooms, so you don’t have to. There may also be reduced insurance rates if there’s a condo co-op setup, which reduces your responsibilities even more.
2. A Good Investment
Real estate, in general, makes a great investment, and condos present unique opportunities for you to make a little extra cash, particularly in the vacation rental market. When purchasing a condo in a good vacation market, you can rent it out all year long, visiting whenever you want to. Your renters will pay your mortgage for you with a little extra for you to collect on the side.
However, a condo is only a good investment in the right markets, requiring careful research. Evaluate market conditions, including the median price of real estate, going rental rates, regional economy, and other factors that can influence your ability to purchase and profit from a condo rental.
For example, Scottsdale, AZ is a good place to invest in a condo because of the huge tourist market there. It’s sunny with all the entertainment, golfing, and luxury vacationers could want. The economy is strong, and the cost of condos is manageable for investors.
Apply the same method of analysis to any region where you’re considering a condo purchase to make sure it will be profitable and match your investment interests.
3. Room to Grow
Many homebuyers start the journey to ownership with a starter home, knowing that they’ll have to move or undergo serious renovations when their family grows. It’s an expensive, time-consuming, and often stressful process.
For the owners of a typical condominium, it’s often a little easier. If you need more space, you can buy out the condo next to you (if it’s available) and simply knock down the wall between the two units. From there, it’s simple renovations to make the two units a seamless entity.
Depending on zoning laws and HOA rules, you might also be able to build a back deck, put in an outbuilding, construct a guest house or “she shed” in the backyard, or build outward. This is an option that would have never been available to you in an apartment.
4. Stronger Social Connections
One thing that socialites love about apartment living is the close proximity to neighbors. Although not everyone in your complex will be friendly; you’re still part of a larger community where you can make friends or borrow a cup of sugar with ease.
Home ownership certainly doesn’t restrict your ability to make friends and grow into a community; but it does present greater limitations. Most neighbors in residential homes like their privacy and may not be interested in anything more than an acquaintanceship.
If you’re the kind of person who craves the social connection of a complex, consider a condo “When you buy a condo, you also buy into a community,” says Eric Bramlett of StreetDirectory. “Therefore, purchasing a condo can easily and quickly provide you with a whole new group of friends that you can get to know and enjoy.”
There are many considerations to make when choosing between the purchase of a home or a condo. But hopefully some of these benefits will make the right choice a little more clear.
