Where to live is not the only thing to think about when buying property. It's also essential to consider what type of property is best. A single-family home works well for many as it offers ample space and the flexibility to design and style it as the owner wishes. Yet, there are a few compelling reasons to consider condos for sale instead. Condos are located in a shared building, but they still allow for full ownership. Keep reading to learn four reasons to buy a condo instead of a single-family home.
Condos Are Great First Investments
Condos can be an exciting point of entry to the real estate world for first-time home buyers. They tend to have a lower purchase price than homes of the same size. That lower cost typically translates into a smaller mortgage and lower monthly payments. Because condos are cheaper than most homes, they require a lower down payment and cheaper monthly mortgage fees. That may mean getting into a home sooner and keeping debt-to-income ratios lower.
From property taxes to utility bills, condos are cheaper than single-family homes in almost every instance. Spending less reduces the risks of financial struggle. That lower monthly payment may make it possible to save up for other investments or to create an emergency savings account.
Additionally, condos are valuable assets. They typically grow in value quickly, often building equity faster than single-family homes as payments are made. In a few years, the owners decide to buy another home, and they may be able to tap into that equity to help cover the down payment on another property. It's also possible to borrow from equity through a low-interest loan for other needs, such as debt consolidation or home improvements.
Condos Have Awesome Amenities
When you buy a condo, you don't have to live in a penthouse to enjoy luxury perks. That includes in-unit amenities, such as granite countertops in gourmet kitchens. That may also include walk-in closets, luxurious bathrooms, and top-of-the-line appliances. Of course, not all properties offer this, but newer condos are typically likely to offer upscale amenities.
Other amenities are those on the property that all (or most) unit owners have access to using as they wish. This may include onsite fitness centers or gyms perfect for daily workouts or yoga sessions. In a high-rise condo development, a rooftop lounge may be the ideal place to entertain. Many condo owners appreciate a location with a pool, perhaps with a sundeck, kids' area, or spa. Some also feature a community clubhouse for hosting events and gatherings, both for the community and private events.
Other amenities that may be present include media rooms, community gardens, and playgrounds. They may feature firepits and grilling areas. Some may also offer programs such as sponsored fitness programs or yoga sessions.
It's essential to know these are not free. Most condos have an HOA or COA fee that the unit owners pay each month or periodically to help cover the cost of these amenities. Still, paying out-of-pocket for most of these amenities in a single-family home can be challenging.
Condos Make Great Short-Term Rentals
Individuals who purchase condos are buying an investment. Down the road, instead of selling it, it may be possible to use that investment to create a rental income. Condos are a great short-term rental opportunity, for example. As long as the community's rules allow for it, it's possible to convert a primary residence into a rental for those who may be visiting the city for a few days or weeks. This creates a nice passive income for the condo owner, who can rent it out as often as they need as long as they comply with tax considerations for vacation rental owners.
The location makes a big difference. Those who buy a condo in an area that tourists frequent are likely to see a consistent level of interest. Those condos in downtown areas or close to area attractions do well. However, a condo in a suburb or another area can still be desirable for those visiting family, coming into the area for medical care, or those who need a place to stay while work is done at their home.
It's also possible to turn a condo investment like this into a full-time rental opportunity (again, as long as it's allowed). For those that play to move within a few years, consider the advantages of holding onto the condo for rental benefits.
Condos Have Fewer Maintenance Responsibilities
Maintenance is another big reason to consider a condo instead of a single-family home for some people. All properties require maintenance, but condo owners bear a lighter burden than their single-family counterparts. In most condo communities, owners are responsible for all maintenance needed within their unit. That may include updates to appliances, flooring, and bathrooms.
The difference is that condo owners typically aren't responsible for independently funding or scheduling maintenance on common-area items. For example, the condo association typically handles snow removal and grass cutting. It may also maintain shared spaces, such as walkways and parking lots. Depending on the terms of the agreement, the condo association may also be responsible for roofs, plumbing, and electrical systems in shared spaces. All of those amenities are also maintained by the association.
The condo owners still pay for this work, but it is typically through a fixed monthly or periodic payment, making it easier to plan for maintenance. That can help to make maintaining the property much more manageable.
Condos Come With a Built-In Community
When you buy a condo, you are buying into a community. Communities tend to be closer in condos than they are in traditional single-family home neighborhoods. This is because there is less space between condos, so people are more likely to interact with their neighbors. Condo communities also typically have common areas, such as pools and gyms, that residents can use. Community events like holiday get-togethers are also fairly common occurrences in condo communities. This helps build a sense of community among the residents.
If you're the kind of person who likes to get to know your neighbors, living in a condo will give you plenty of opportunities to do just that. Meanwhile, people who want their privacy may feel more at home in a single-family home where there is a clear separation between properties.
Would You Rather Own a Condo Or a Single-Family Home?
Condos have a lot of benefits to offer. What's important to keep in mind is that each condo association sets its own rules and requirements. More so, not every community is the same in what they offer. For that reason, those in the market for a condo (or a single-family home) should compare numerous locations to decide if a condo is the right fit for their lifestyle. There could be numerous options to choose from in the neighbourhood or the city depending on the location.