No condo fees, or unexpected assessments! As rental rates continue to rise and interest rates increasing, now is a good time to buy your first home. With a condo, you have substantially fewer responsibilities. Opting for a condo is a great investment even when you plan to live in it temporarily. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. If your condo management team is active, they would also probably get in the community spirit and host meet-and-greet events to get to know your condo neighbors better. 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. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. 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. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. For some people, buying a condo as their first home has advantages. These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 1200. You Can Save Money. This includes... © Copyright Home... Statistics have predicted a better performance this year in the housing sector than all the previous years. Share Tweet Pin LinkedIn Google+ EMAIL. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. (Am I a middle child? So, are you excited to commit to a new place you can call home? He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. We do not post inappropriate or abusive comments. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. A lower purchase price means a lower down payment and less money to come up with out of your pocket. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Are you ready? In the current market, you are probably paying more for your rent … If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. We can help answer any tough questions you have. 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. Adam viewed buying his 2-bedroom condo in Germantown, Wisconsin, as a stepping-stone to his future — except this stepping-stone also grew money. 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. Maybe.”. So, are you excited to commit to a new place you can call home? Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. 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. For those considering their first home purchase, a condo may be a better fit in terms of budget, space, and the stress a condo can save you—here’s why you should consider a condo for your first home. The cost is lower than other forms of housing. "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. “I was a 23-year-old kid who had a short- to mid-term commitment to a general area. I can send you a list of handpicked homes for you and your family to look at. There are also other trade-offs to owning a condo. In addition to a mortgage payment, Adam pays a monthly fee to the condo association to cover building maintenance costs, shared services (like snow removal) and contingencies. No need to … "Our experience with Andrea and Melisssa was wonderful. Yes, condos generally appreciate in value. Study up and then test your knowledge! Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 2021 RE/MAX Direct. We'll let you know what's new but we won't clutter up your inbox. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. The chances to meet new friends increase because there are common recreational spaces and areas to mingle in. Just take your dog out for a walk, or cycle around and you might just meet a new friend! This factor drives down the costs of upkeep and maintenance even lower (even when factoring in homeowner fees with mortgage) as compared to renting a house. Chapter 3: Condo Mortgages Getting Your Personal Finances In Order . A house generally offers much more space than a condo, giving you room to grow. I would rather explore the differences. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. The owner of the condo pays only a small portion for building maintenance. We use cookies on this site to enhance your experience. Take the Homebuyer Education Test. Less space means you can easily heat up or cool down your home whenever you need it. So, are you excited to commit to a new place you can call home? So, are you excited to commit to a new place you can call home? Here are 5 more reasons why investing in a condo is a great choice for your first home: How much are you paying for rent now? I also knew I didn’t want to throw gobs of money at a landlord for rent. A condo also provides the benefit of free recreational space and activities, some external repairs, and water might even be included in the HOA (homeowner association fees). 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. Learning the terms, negotiating the loan market…even if you’re not a first-time buyer, there’s a lot to consider. A condo might be more limited in terms of space when comparing to a single family house, but monthly fees and utility bills will be smaller as well. You’re free to paint your kitchen electric pink, but you have less control over your outdoor space. So, are you excited to commit to a new place you can call home? 1. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. Published on October 18, 2015. But if your dishwasher dies, there’s no landlord to take care of it: You own the condo, you deal with it. phone (484)712-0009 phone (484)467-6489. For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. How much do you know about buying a house? 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. 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. 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.”. I would rather explore the differences. The only bonus I would have at the end of renting would be my security deposit. “My decision to buy a condo has paid off for me,” Adam said. Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? 5 Reasons Why A Condo Makes A Great First Home Sophia Polk. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Home; Buying. Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. Buying a first home means assuming responsibility for maintenance and repairs, something your landlord may have handled previously. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. Comparing Condo and House Prices . Like a single-family starter home, condos are an excellent first step into homeownership, giving buyers a chance to obtain a mortgage and become homeowners at a lower cost and with less responsibility than a single family home purchase. As far as the location goes, buying a condo will give you more flexibility on where to live, because they are slightly cheaper than … 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. Homeowner association fees should cover all of that. In many areas, a condo may be priced a bit lower than the average purchase price of a house. 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. 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. Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. You won’t even need to start shoveling snow in order to get to work or the local mall! All Rights Reserved. So, are you excited to commit to a new place you can call home? So, are you excited to commit to a new place you can call home? Calculate if you should save up for a big down payment on a house or buy right now. This is especially true for condos, which offer a number of fantastic opportunities but also present a range of complex challenges. The right location One of the biggest game changers when deciding on a condo is the location. 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