Four Financial Benefits of Owning a Condo
Real estate is a notoriously tricky industry, with property values changing so quickly and with so many options — House, townhouse, apartment, or condo? Buy or rent? — it’s no surprise that so many people get frustrated and don’t want to make a big mistake. After all, buying a condo or a house is a big decision financially, and if you’re a little hesitant to take that step, you’re definitely not alone.
There are plenty of details that you should consider before buying a condo, buying a townhome, or just a regular house, but if the financial details are worrying you, here are four reasons — all related to finances — why more people are buying condos these days:
- As we’ve already said, real estate investments are tricky because it’s hard to determine what a particular piece of property will be worth in the future. But compared to home ownership, condos are often specifically built on prime spots of land, either in scenic locations or in urban locations, and the value of those spots is less likely to decrease suddenly.
- It should be mentioned that the value of condos increase slower than houses do (assuming that the house is in a good location), but compared to renting an apartment or townhome, you’ll build up your equity much faster after buying a condominium. Because you actually own the condo, just like you’d own a house, the equity you earn with a condo is extremely valuable.
- For people who anticipate having some trouble affording a house or obtaining a loan for a house, buying a condo can be a better option because there’s usually a lower down payment. This is often one of the biggest advantages of owning a condo, especially for young, first-time buyers as well as older residents; young buyers often have trouble coming up with the money for their first home, while older buyers often benefit from downsizing and putting that extra money into retirement savings.
- Finally, because condominium communities usually take care of outdoor maintenance and indoor utility problems, you’ll probably end up paying much less on these than you would if you owned a separate house. The amount of tasks and maintenance issues that each condo handles is likely to vary quite a bit, and before buying a condo, you should always make sure to find out which tasks you’ll be responsible for. It’s common for condominiums to charge annual or monthly maintenance fees to cover the cost of these jobs (and that exact fee is also something to research before buying a condo), but many condo owners are quick to note that the overall cost of maintenance and utilities is lower than with an individual house.
Now it’s your turn to share — if you own a condo yourself, what financial advantages are more important to you? Be sure to let us know over in the comments section! To learn more, read this.