Is Buying a Condo Right for You?

Condos offer plenty of perks, but they aren’t for everyone. They can be a great way to step into homeownership without the upkeep of a single-family home or townhome. Plus, shared amenities and professional management to handle building maintenance are major advantages.

Whether you should buy a condo, a home, or rent depends on your lifestyle and preferences. Today, let’s explore the benefits of condo living and why it might be the perfect option for you.

What is a Condo?

A condo, short for condominium, is a privately owned unit within a larger property, often part of an apartment-style building or community. Condo owners share common areas and amenities like parks, pools, gyms, and more.

Most condos are part of a homeowners association (HOA), which manages the property and enforces rules. Condo owners are responsible for maintaining their units and pay HOA fees for building upkeep and common area maintenance.

Benefits of Condo Living

#1 Less Maintenance
One of the biggest perks of condo living is reduced maintenance. Forget about mowing lawns or shoveling snow—those responsibilities fall to the HOA. This makes condos appealing to those who prefer less home maintenance or those looking to age in place, with neighbors nearby and repairs handled by professionals.

#2 Desirable Locations
Condos are often located in prime areas like downtowns or city centers, offering a more affordable entry into desirable locations.

#3 Security
Many condos offer gated entrances, security personnel, or doormen, which can be reassuring, especially for those living alone.

#4 Amenities
If you’ve dreamed of having access to a pool, fitness center, or community spaces, condos often include these features as part of your HOA membership. They also provide opportunities for socializing with neighbors.

#5 Affordability
Condos are generally more affordable than single-family homes, making them a great option for first-time buyers. According to the National Association of Realtors, the median sales price for a condominium in October 2020 was $273,600, compared to $317,700 for a single-family home.

While condos may be a lower-cost investment, it's important to factor in HOA fees, which cover amenities and maintenance. Even with these additional costs, condos tend to be smaller, and thus more affordable, than single-family homes or rental properties.

Bottom Line: If you're on a budget, a condo can be a smart first step into homeownership. Find a location you love and do your research to see if a condo fits your needs.

#6 Build Equity
Like with any real estate purchase, condo ownership builds equity, providing a long-term financial benefit.

Potential Drawbacks 

#1 Homeowner Association Fees (HOA) & Rules

• Most condos offer services that other real estate properties do not like a fitness center, swimming pool, security system, etc. And, because of this, the HOA fee can range from $100 to $700 a month depending on location and other factors.
• At times, the condo owner’s association may levy a “special assessment,” or a significant fee charged to each condo owner to cover major updates or upgrades. For instance, replacing a roof, resurfacing a pool deck, or upgrading plumbing.
• With fees, come HOA rules. These rules apply to you and your tenants which include things such as parking, pets, renting out your condo, etc. Tip: Make sure to review all rules and regulations first to determine if it will be a good investment for you.

#2 Lack of Privacy

• With shared walls and close proximity to neighbors, condos offer less privacy compared to single-family homes. If peace and quiet are top priorities, this may be a drawback.

#3 Parking and Storage Issues
Some condos have limited parking or require a walk from the car to your front door. Storage space can also be limited, which may be a challenge if you have a lot of belongings.

#4 Rental restrictions
If you’re considering renting out your condo, check the rules first. Some associations restrict rentals or impose certain limitations.

Is a Condo Worth It?
When deciding if a condo is right for you, consider more than just the price and location. Factor in HOA fees, rules, and the lifestyle it offers.

• If you enjoy apartment-style living and want to ease into homeownership, a condo could be a perfect fit.

• Busy professionals with little time for upkeep may also benefit from the low-maintenance lifestyle condos offer.

• Condos are also ideal for older buyers looking to downsize and avoid the responsibilities of property maintenance.

Bottom Line

Before investing in a condo, weigh the pros and cons. Review the condo’s HOA rules and ensure they’re in good financial standing. If you’re ready to make the leap into condo ownership, click here to get your free pre-approval.

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