The Pros and Cons of Buying a Condo
Are you looking to buy a condo? You’ve found the right place if you are. A condo purchase is similar to buying a single-family home, but there are important differences. There are pros and cons to condo life in Savannah. It is important to fully understand all aspects before you make a decision. If you or someone you know are interested in making a condo your new home, please read on.
What is a Condo?
Before we get any further, let’s first define what a condo is. A condo is different than a single-family house. Both are single-family residences. However, a single family house is usually a separate building. A condo, on the other hand, is often part of larger buildings that are shared with other residents. Condos are not the same as apartments, however.
A condo is like an apartment that you own. Residents often share walls with their neighbors next door. Condos share common areas with their neighbors like apartment complexes. However, with condos, these areas are owned jointly by the condo residents.
You should also know that some condos can be detached.
Are Condos Worth Buying?
It all depends on your search criteria.
Condos are a popular option depending on the area and housing market in which you live. In downtown areas, condos are even more popular. Condos are far more common in downtown areas since there aren’t many single-family homes near shops and office buildings.
Many buyers can live in condos without having to sacrifice their lifestyle or convenience in order to own a home. A condo is a great alternative to renting an apartment. Condo owners can often build equity and take advantage of tax deductions for mortgage interest.
A governing board oversees the operation and maintenance of condominium communities. This is another unique aspect of condo living. These boards oversee the community and set the rules. They also take care of maintaining the common areas, which are shared by all residents.
Which is better: a condo or a house?
The decision between buying a condo or a house when you are ready to buy property is important. Purchasing a condo can be a good choice for many reasons.
Because condos are smaller than single-family houses, they can be more affordable. Condos aren’t attached to any land, which is another reason condos are generally less expensive than houses.
Condos are popular among first-time homebuyers because of their affordability. Also, condo communities often offer services that are specifically tailored to retirees, which makes them a viable option for older couples as well.
Condos often have many amenities that single-family homeowners may not have such as a pool or theater room.
A single-family home requires more maintenance than a condo. Condos offer the benefit of sharing responsibility for your space and freeing you up to spend your time. A condo may also reduce your costs as expenses are shared.
A condo purchase can also have other benefits. Let’s now take a look at some of the pros and cons of buying a condo.
The pros and cons of buying a condo
Equity
Condo living may be for you if you love apartment living for the conveniences and sense of community it offers. However, if you also want to build wealth for the future, condo living could be for you. You can build equity when you purchase a condo. Home equity refers to the financial part of the home that the owner actually owns. As you pay down your mortgage, equity can increase. If the property’s value increases, equity can increase. If you decide to sell your condo, the equity you have built can be used to buy your new home.
Affordability
Condos are generally less expensive than single-family houses and can offer more homeownership options. However, your real estate agent can help you see the price differences by looking at comps in the area.
Localization
Condos are often built in high-demand, highly-desired areas or downtowns. If you want to live in the center of a city, or close to many amenities, a condo may be the best option.
Security
Many condos have security features like a doorman or call box. You can feel secure when you’re away from your condo by living with a group of neighbors.
Improvements
A condo is your home, not an apartment. Your condo can be customized to make any home improvements that you want. You might like to remodel the bathroom or kitchen. You can do it. Want to paint the bedroom. You can do that too. You don’t need anyone’s approval to make personal changes because you own the condo.
Maintenance
A condo is a good option for those who aren’t inclined to do any yard work or are not handy with tools. Many condominium complexes employ professionals to maintain the exterior of the common areas.
Amenities
Condo owners are also co-owners of the common areas in their condo building. Many condo buildings have tennis courts, swimming pools and gyms.
The Cons of Buying A Condo
No land ownership
The land below your condo won’t be yours when you purchase it. You will share an interest with other condo residents. You also buy the land on which the home is built when you purchase a house. This could mean that you spend less on home maintenance depending on your preferences.
Fees
Although the common areas in condo buildings are nice, it is expensive to maintain them. A monthly fee will be charged to condo residents for maintenance and repairs. You may be charged an additional fee for larger repairs or renovations. However, you can also enjoy these upgrades.
Community Association Rules
You will be living in a community that has a board or association to manage it. This means you must follow the rules of the condo. You may need to follow rules regarding pets and how they can be used. Participation in your local association or board may be an option.
Parking
A condo might have limited, or no, parking options depending on where it is located. Condos may only permit one parking space per unit. This could pose a problem if you have more than one vehicle.
Storage
Condos have less storage space than houses because they are generally smaller than houses. Although some condo units have a designated storage area, these spaces might not be able to store larger items.
Let’s now consider whether purchasing a condo is a wise decision.
Is owning a condo worth it?
It is up to you and your family to decide whether you want a condo or a single-family home. Condos offer many benefits and are a good option for first-time buyers. They will allow them to build equity and then use that equity to purchase their next home. If you are looking to buy a condo and live in a desirable area, a condo could be the best choice.
Here is a quick look at what pros and cons are associated with buying a condo.
Condo Pros
- Home equity
- It may be more affordable than a single-family house
- Location, location, location
- Increased security
- You may have a swimming pool and a gym
- Exterior and shared spaces are well taken care of
Condo Cons
- No land ownership
- Maintenance and HOA fees
- Must follow the HOA rules
- parking may be limited
- storage space is less abundant
Financing a Condo
You should know that condos are different from single-family homes when it comes down to mortgages.
A condo loan might have additional requirements than a loan for a single family house.
There is one major difference between single-family homes and condos: if you apply for an FHA loan.
You must list your condo on HUD’s approved condominium list if you are interested in an FHA loan. To be eligible for FHA financing, a condominium project must fulfill certain criteria.
Conventional loans are subject to different rules and guidelines depending on the lender. Investors will require that at most 50% of units in a building be occupied by owners as primary residences or second homes. The investor may have to follow certain HOA rules.
Conclusion of the pros and cons on condos
As you can see, deciding on whether or not a condo is a good choice is going to be up to the homebuyer. Some people like to be near shops and restaurants and may not be interested in keeping up with yard work. Others may not mind the yard work and like the idea of a quiet suburb.
Whichever you decide, information is your best ally. Talk to your real estate agent about your wants and needs and they will help you make the best decision for you!
