Condos have become popular. You need to know the pros and cons of condominium ownership if you are considering buying one. Baby boomers are looking to downsize to places that are easy to take care of. Today, condos have a higher demand and more Sale compared to single-family homes.
Buying a condo can be a great idea, whether you are starting a family or looking for a smaller living space. You need to keep in mind that condo living is not for everyone.
A condo is a private residence within a larger community or building. For condos, you share common areas with the other units; pool, fitness center, and manicured grounds. You will have to pay monthly dues for the amenities, which is different from apartments.
Pros of buying a condo
Less Maintenance
One of the biggest benefits of having a condo is the fact that someone else is going to do the maintenance and not you. Someone else is going to maintain the grounds, shovel snow, fix the roof, and you don’t have to worry about finding someone to help you replace the siding. If you don’t have enough time for maintenance, in poor health, first-time homeowner, or you don’t want to deal with these chores, then owning a condo might be a good idea.
Security
Condos usually have locked or gated entries, security professionals, or doorkeepers for their residents. If security is a concern or you live alone, then you will have peace of mind living in a condo. There is a reduced risk of home break-ins and living closer to other people means you will have plenty of people to help in case of an emergency. Before buying a condo, find more about the security, which many of them will be ready to show you.
Amenities
Condo communities provide a wide range of amenities. Are you looking for a living space with a fitness center? A pool? A clubhouse hosting Wednesday game night? A condo provides you with amenities that are way out of budget for most homeowners.
Affordable
You will pay less for a condo compared to a single-family home. If you have a tight budget and looking to own a home, then consider a condominium.
Appreciation
Single-family homes used to be more appealing in the past, and this is why they had a higher appreciation rate compared to condos. Another reason for the higher appreciation rate could be land ownership, which has a big impact on the appreciation.
This has started changing. There was a study done by Trulia on the appreciation of properties show that between 2012 and 2017, condos saw a 38.4% rise while single-homes saw a 27.9% rise.
Cons of condominium ownership
Homeowners association fees
The amenities and services you get are going to come at a price. Buying a condo means you are a business partner in the community. Each month, you have to pay HOA fees, which will be on top of the mortgage. These costs are also going to rise for years to come, especially when you put inflation into account.
Lack of Privacy
A condo has the same structure as an apartment. There are neighbors on the side of your walls, which is not great for privacy. When a neighbor is having a party, you will have to deal with the noise. A condo might not be the best option if you want a quiet and peaceful place.
Difficulty Selling
Condos can be harder to sell because not everyone is interested in condos. Families want a yard where their children and pets can play in. If HOA fees are high, then you price out many prospective buyers. HOA is going to play a big role when it comes to selling your condo.
There are a lot of rules, which is not something many people want.