Search Homes For Sale; Mortgage Calculator; Guide To Buying A Home We can help answer any tough questions you have. Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. How much are you paying for rent now? As … "Our experience with Andrea and Melisssa was wonderful. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. We do not post inappropriate or abusive comments. There’s no doubt that renting a house gives you quietness and privacy when you need it, but the more affordable ones are pretty far out on the suburbs. By dismissing the idea of condos, buyers limit their choices – and may be limiting their … Home; Buying. Share Tweet Pin LinkedIn Google+ EMAIL. Share Tweet Pin LinkedIn Google+ EMAIL. Living in a house, in a suburban neighborhood also limits your day-to-day encounters with neighbors and those in the immediate vicinity. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Just take your dog out for a walk, or cycle around and you might just meet a new friend! Share Tweet Pin LinkedIn Google+ EMAIL. 5 Reasons Why A Condo Makes A Great First Home Sophia Polk. I can send you a list of handpicked homes for you and your family to look at. SHARES . I did the math and realized by purchasing a condo I’d have about the same monthly expenses as renting while also building equity, giving me an investment that will grow as I live there. After a few years or when you need more space to live in, you can put it up for renting and earn a little income along the way. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. You won’t even need to start shoveling snow in order to get to work or the local mall! “In order to get into the condo sooner rather than later, I put down 5% instead of the full 20% down payment,” he explained. But, if you’re trying to decide between a condo or a house, keep in mind that a single-family home is usually going to grow in value faster than a condo will. Bousley, who owns two condos, says one of the perks of buying a condo is not having to bother with the typical chores that go along with owning a single-family home. But as long as I’m living there too, I’m free to rent my extra room out to anyone.” However, if Adam decides to move and rent out his whole condo, he’ll only be able to do so if the condo association agrees. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. How much do you know about buying a house? We'll let you know what's new but we won't clutter up your inbox. You’re wasting your time if you head out condo-hunting, but don’t have an accurate measure of what you can honestly afford. If it's on the outside, it's generally the condo association’s responsibility.” That means that if you live in a place that tends to snow, like Adam does, having snow removal and provided services is a big benefit compared to buying a home. You may not have much of a choice with a limited budget. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. “My decision to buy a condo has paid off for me,” Adam said. Are you ready? As I have seen in my experience as an investor—and initially as a part-time investor in my early days—condos may be good investments, but they do behave and perform a little differently. As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. A fair cost comparison considers the amount of a condo's association fees upfront and adds that sum to the total cost of the house or condo. Living in a condo means that you can save time instead of doing outdoor and lawn chores such as trimming the hedges or mowing the grass. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. Home equity: Probably the main advantage for being a condo owner over a renter is that condo owners gain equity in their real estate over time. Buying a first home means assuming responsibility for maintenance and repairs, something your landlord may have handled previously. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. I would rather explore the differences. How'd you guess? So, are you excited to commit to a new place you can call home? Opting for a condo is a great investment even when you plan to live in it temporarily. Buying a condo or townhome as your first home allows you to live in your ideal location while saving money and becoming part of a secure, caring community. In many areas, a condo may be priced a bit lower than the average purchase price of a house. “I’ve gained about 15-20% on my listing. These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. Why You Should Consider A Condo For Your First Home. 1200. The cost is lower than other forms of housing. Lower costs and included maintenance make condos attractive to first-time home buyers, but compared to single-family houses, condos have risks. Are you still doubting your financial capability to buy a house of your own? phone (484)712-0009 phone (484)467-6489. 5 Reasons Why A Condo Makes A Great First Home Jon C. McBride. Now that you’re armed with a solid understanding of condo ownership, you have the tools you need to evaluate whether it’s a good choice for your situation. This includes... © Copyright That means you can do what you want with it – to an extent. Published on October 16, 2015 A condo located in a nearby university or an urban spot guarantees that your neighbors and fellow condo owners are young families, grad students and young professionals. Instead, he financed with private mortgage insurance (PMI). Then, if and when I decide to move, I’ll have some added flexibility with the extra cash I get from selling.”. “When I look at the cost of renting a comparable apartment, I’m paying just a touch more to own per month, and I’m also building equity. The chances to meet new friends increase because there are common recreational spaces and areas to mingle in. Renting may be a more popular choice for millennials who simply can’t afford to spring for a home, but with rental costs gradually increasing is it still the better choice than opting for homeownership? First time buyers who don’t consider condos are doing themselves a disservice. 2021 RE/MAX Direct. Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? No condo fees, or unexpected assessments! If he had purchased a single-family home, his maintenance expenses would probably be comparable over time, if less predictable. The right location One of the biggest game changers when deciding on a condo is the location. Generally speaking though, a condo complex can be wonderful for young first-time home buyers or retirees, but it’s usually not ideal for people craving more privacy and autonomy. Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. At the same time, home buying benefits like home values that retain their pre-recession prices and very low mortgage interest rates have been consistent in almost all areas. “I was a 23-year-old kid who had a short- to mid-term commitment to a general area. Comparing Condo and House Prices . The owner of the condo pays only a small portion for building maintenance. Owning a condo is very similar to renting an apartment, except that the owner has the freedom to modify their unit as much as they like, as long as it’s within the written standards set forth by the community. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. “It’s pretty straightforward, actually,” Adam explained. Ultimately, it comes down to your lifestyle and your list of must-haves and deal breakers when searching for a home. First, You Should Get Pre-Approved. The only bonus I would have at the end of renting would be my security deposit. It might be a little bit similar to apartment living, but there's a lot of other benefits to having a condo be your first home purchase. I would rather explore the differences. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. So, are you excited to commit to a new place you can call home? "I initially assumed a condo must be a good idea for someone who did not want to take care of maintaining a house," Little says. While this may not necessarily be a bad thing, one angle to look at location is to go for a developing area or one that has potential for appreciation. Starting October 3rd, home buyers who wish to apply for a mortgage will receive a new rate and fee quote... Buying a home can be a scary thing, this type of purchase involves a long term commitment from maintenance to financially. This makes it a bit more difficult to get out when you want to visit your favorite hangouts, or eat at your local dining restaurants. I also knew I didn’t want to throw gobs of money at a landlord for rent. In the current market, you are probably paying more for your rent … Learning the terms, negotiating the loan market…even if you’re not a first-time buyer, there’s a lot to consider. Whether he chooses to stay in his condo or sell it and use the equity he’s built to move up to a bigger place, he’s happy he decided to become a condo-owner early in his 20s rather than renting. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. There are also other trade-offs to owning a condo. With a condo, you have substantially fewer responsibilities. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. By continuing to use this site you agree with our use of cookies. 1. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Adam explains it this way: “If it's inside the walls, it's my responsibility. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. We use cookies on this site to enhance your experience. Lower initial price . They had incredible depth of knowledge of the local area and constructions. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. All Rights Reserved. Yes, condos generally appreciate in value. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. In the current market, you are probably paying more for your rent than springing for a mortgage and homeowner association fees, combined! If you're a potential first-home buyer, then you know just how confusing the property market can be. My condo association has a rule that a certain percentage of units be occupied by owners, not tenants. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Why? So, are you excited to commit to a new place you can call home? (Am I a middle child? A lower purchase price means a lower down payment and less money to come up with out of your pocket. Here’s the quick argument for buying a condo: Buying a condo as your first home lets you get onto the property ladder sooner, because condos are generally cheaper than houses. According to a recent survey by the National Association of Realtors only 2 percent of home buyers said buying a home for financial security was their primary reason. But if your dishwasher dies, there’s no landlord to take care of it: You own the condo, you deal with it. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. So, are you excited to commit to a new place you can call home? “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” … “I'd rather have a pile of cash to rely on for emergencies and other expenses, and just pay the negligible PMI each month.” After 5 years in his condo, Adam is close to cancelling his mortgage insurance. Homeowner association fees should cover all of that. Take the Homebuyer Education Test. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Study up and then test your knowledge! SHARES . Read our commenting policy. So, are you excited to commit to a new place you can call home? I didn’t have any grand plans to move to a new city in the next 5 years. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. You Can Save Money. No need to … Renting may be a more popular choice for millennials who simply can’t afford to spring for a home, but with rental costs gradually increasing is it still the better choice than opting for homeownership? When it comes to deciding whether to rent an apartment or buy a home, condos are like the middle child: often forgotten, despite their many sterling qualities. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. That condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the same location! Adam followed advice he received from friends and family not to stretch his liquidity to cover a 20% down payment. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. The short answer is: You buy a condo like you would any other home, so it's yours to own. 1200. Published on October 18, 2015. Readynest reviews all comments to ensure a respectful dialogue, so your comment may take a day to appear. I didn’t go in expecting any appreciation, since the value of condos tends to stay flat. ), I never considered buying a condo in my 20s, but it was the first move for my friend Adam after he graduated from college and left the parental nest. 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