Having a home of your own is a dream that many people share. While some individuals purchase a house on their own, Damon Becknel, an experienced entrepreneur and land developer, believes that others prefer to buy a condo instead of a house. This article discusses the benefits of owning a condo as opposed to buying a stand-alone house.
Here are some of the benefits of buying a condo:
Convenience
Condos are more conveniently located than stand-alone houses because they are typically near stores and other common places such as malls. In addition, condos can be purchased at an affordable price compared to stand-alone houses that have all the same amenities. When you buy a condominium, you only need to pay for part of the mortgage, unlike when you purchase a house where you have to pay for the entire cost of ownership. Some buildings even have amenities such as pools, gyms, and spas for their condo owners.
Affordability
One of the main benefits of buying a condo over a house is the fact that condos are much more affordable than houses. When you consider factors such as size and location, condos tend to be cheaper than stand-alone homes. Condos have a smaller footprint compared to stand-alone houses, thus requiring less time and money for maintenance purposes.
HOA Management
Condominium homeowners’ associations (HOA) manage the buildings of condominiums. This makes it easier for condo owners to avail of amenities without having to deal with management issues, thus reducing stress levels. You can expect maintenance fees, taxes, and insurance costs to be lower when you buy a condo instead of a stand-alone house.
Lower Home Inspection Costs
Home inspections for condos are less expensive compared to home inspections for stand-alone houses. In addition, condo buyers get a lower interest rate on their mortgage because there is an implied warranty from the HOA that the condo building is in good condition, thus reducing inspection costs for both buyers and sellers.
Possible Government Assistance
Governments offer different programs to aid prospective homeowners. One of these programs provides a tax credit to first-time homeowners who buy a house within a specific period of time after being approved by the bank or financial institution. This program allows individuals with low-income levels to purchase homes using government assistance at no additional cost. When you buy a house, you will not be able to avail this program.
Lower Insurance Costs
The costs of insuring a stand-alone house are higher compared to insurance costs for condos. This is because condo owners share the cost of property damage with other people who live in that condominium building. When you buy a stand-alone house, you will be paying for 100% of home insurance costs compared to 50% for condo owners.
Flexible Living
Condos are the best living arrangements for parents who want to live with their adult children, newlyweds, and retirees. Parents can move in with independent adult children without having to give up their independence because condos offer more private space compared to stand-alone houses. Newlyweds enjoy the convenience of closing off certain sections of a house while renting out other sections when they buy a house instead of a condo. Retirees also benefit from the flexibility that condo living offers, thus reducing stress levels experienced during retirement. Renters can easily purchase condos using tenant’s rights on existing leases, which makes moving easier compared to buying a new home where you have no control over your old lease conditions unless it is expiring soon.
Final Thoughts
If you are planning to invest in real estate, buying a condominium may be an ideal option because of the benefits discussed above. If you are a first-time homebuyer, buying a condominium is an even better option. You can purchase a condo for as low as $150,000 and enjoy the benefits of living in this type of building. With condos becoming more affordable than houses today, this is one investment that allows you to enjoy more while spending less.
