Should You Buy a House or a Condo?
Moving to a new city and making decisions on your residence can be a critical decision. Should your new home be a single-family house or a condo? With rates on average mortgage loans trending near all-time lows, this is certainly the time to buy any property.
Here’s a handy, five-step guide to help you make the home vs. condo decision before you move:
Location: First and foremost, you must decide where you want to live. From there, find out about the condo and single-family house options in the area. Condos generally have a lower entry price than single family homes but tend to appreciate at a slower pace than a single family home and are more affected in an economic downturn.
Privacy: Think about how much privacy you would like. Having complete privacy is possible in a single-family house, while condo living means neighbors will be quite close. Outdoor space at a condo is generally shared space and doesn't offer the enjoyments of a private yard.
Responsibility: When it comes to decisions affecting your home, do you feel comfortable involving neighbors? Many condo communities have strict rules about everything from paint choices to the hours when you can take out your trash cans. Pet restrictions are very common to the size of the animal or the amount of pets you can have. These are all issues that have no impact on owners of single family homes.
Maintenance: Many condos include maintenance fees that cover landscaping and exterior maintenance on the unit. While a homeowner of a single family home does not incur these monthly fees, they are solely responsible for any issues that arise with their property.
Budget: How much do you want to spend on the property? Condos are usually more affordable than a house, and if you are a first time home buyer the last thing you want to do is overextend yourself financially. Consult a lender and get pre-approved before you go house hunting. This will give you a better idea of what price points give you a monthly payment that you can manage as well as which price points you will be approved for financing.