As people progress in their lives, chances are that they will experience a desire for ownership of their living spaces. For many, this means a transition from an apartment to a traditional single-family home. While a traditional home has many potential draws for a first-time homeowner, an often-overlooked option is a condominium.
What is a Condominium?
A condominium (or “condo”) is a residential complex consisting of separate units, each owned by their respective resident. These units resemble apartments in some ways, often sharing walls with other units, and sometimes they are even located in high-rise buildings. While condo owners are responsible for the interior upkeep of their units, they must join their condo’s association to collectively care for their building’s exterior and other shared spaces. Due to this, condominiums can be viewed as an intermediate living space between apartments and traditional homes.
The Pros of Buying a Condo
The first pro that comes with buying a condo is that they are much more affordable than traditional homes, at least at first glance. Homebuyers should still make sure they take the full picture of costs into consideration before making their decision. Additionally, condo owners have considerable freedom from routine maintenance. Traditional homeowners have their time taken up shoveling, mowing their lawns, and painting their exteriors. Condo associations collectively hire out for these regular necessities.
The Cons of Buying a Condo
From a pure investment perspective, condominiums have proven to appreciate at a slower rate than traditional homes. In addition, condos have a reputation of being difficult to sell or flip in comparison to single-family homes, leading condo owners to rely on things like location and other differentiating factors to bolster resale options.
Additionally, while condos are largely cheaper than traditional homes, sometimes additional costs cut into these savings considerably. Condo owners must join their condo’s association and pay monthly dues that work towards regular maintenance. These fees can range from $100 to $1,000 in many cases, which can add up to a higher overall cost than a traditional single-family mortgage.
Always take the full picture into consideration when choosing your next home!