Once you decide you’re done with renting and are ready to buy or want to downsize, you may notice that there are several options available to you outside of the single-family home. One popular option for many first-time home buyers is a condo. Here are some factors that you should consider before deciding this is the right option for you.
WHAT IS A CONDO?
A condo can be most easily explained as a combination of a house and an apartment. Unlike an apartment, however, you are the owner of your unit. Like an apartment, it’s closer quarters ands shared spaces.
Pros
START BUILDING EQUITY
As soon as you purchase a condo, you immediately start building equity. When you decide to move, any money you have made on payments can then be used towards down payments for future housing options.
LESS EXPENSE & MAINTENANCE
On average, a condo is usually less money than a single-family home, making it a great stepping stone into home ownership. When living in a condo, since all outside structures are insured by the condominium, all you need to insure is what is inside your unit which also helps save you money. You also won’t need to worry about tasks such as mowing the lawn or shoveling snow as this is usually taken care of by the condo staff.
Cons
HOA FEES
Condos sometimes feature several amenities. This can include swimming pools, fitness centers, maintenance staff, etc. In order to maintain these, you are charged a monthly fee in addition to your mortgage. This amount greatly depends on factors such as the size, location, and quality of the place in which you live. Take the fee into considertation when planning your budget as it may price you out of certain areas.
LESS CONTROL
Due to HOA regulations, you may not be able to make certain changes to your individual condo. For example, some associations want to keep units as consistent as possible, so tearing down that wall may not be an option. You may also need to follow rules as to what days and times you are able to have construction happening.
