It is essential that we first clarify the definition of a condo. A condo is not the same as a single-family house. A single-family house is likely a freestanding building, whereas a condo is typically part of a larger building shared with other residents. However, condos are different from apartments. In basic terms, think of a condo as an apartment you own. When you live in a condo, you often share walls with your next-door neighbors. Condos have communal areas like many apartment complexes, but other condo residents jointly own the communal areas with a condo.
If you are partial to apartment living due to the features and the sense of community you can create, but you are also interested in building for your financial future, condo life may be the right choice for you. When you buy a condo, you can build equity. Home equity is the financial portion of the dwelling the owner truly owns. Equity can increase over time as you pay down your mortgage.
Contrary to an apartment, it is yours if you own a condo. You can make home improvements to your unit that please you. If you want to remodel the kitchen or a bathroom, you can do it. If you want to paint a bedroom, you can do it. You are not at the mercy of whether or not the apartment management company wants to make improvements.
Depending on the housing market or neighborhood where you’re looking to purchase a home, condos may be the most popular and widespread option. In downtown areas, for example, condos are a common choice. Most downtown areas don’t have single-family houses next to office buildings and shops, but condo buildings are often mixed in with these convenient urban amenities.
Condos provide many buyers the chance to live in a location they might not otherwise be able to without sacrificing convenience or their desired lifestyle in favor of homeownership. Owning a condo can be a practical alternative to renting an apartment, especially when you consider that you can build equity and often take advantage of tax deductions on the mortgage interest as a condo owner.
When you invest in a condo, you won’t own the land it stands on. Rather, you will share an interest in it with the other condo residents. When you buy a house, you are also purchasing the land it sits on. Depending on your preference, this might mean spending less overtime on home repairs and maintenance.
Since you’ll be living in a community with an association that helps to govern it, you will have to abide by the rules of the condo. Rules may include whether you can have pets, what types of pets you may have, how and when the shared facilities may be used, and rules about visitors or guests among others. You may also elect to participate in your community board or association.
The shared areas of condo development are certainly nice, but it costs money to keep them up. As a condo owner, you will likely be required to pay a monthly fee that goes towards the upkeep and fix of the shared areas. There may also be an extra fee tacked on for any bigger repairs and renovations to those areas too, but you will also get to take advantage of these amenity upgrades.
The choice between a single-family house or condo is truly up to each person or family. There are perks for each, but condos are definitely an appealing choice for first-time homeowners as condos will help them build equity that they can use to purchase their next home. Purchasing a condo may also be the most suitable option available if you want to live in a particular area and buy a piece of property rather than rent.