I would rather explore the differences. That means you can do what you want with it – to an extent. 1200. Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. 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. 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. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. In the current market, you are probably paying more for your rent than springing for a mortgage and homeowner association fees, combined! 1. If he had purchased a single-family home, his maintenance expenses would probably be comparable over time, if less predictable. So, are you excited to commit to a new place you can call home? 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. "However, I quickly realized that the $250 a month that my condo board charged me for the pleasure of being under their management was drastically overpriced. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. So, are you excited to commit to a new place you can call home? That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. 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. You’re free to paint your kitchen electric pink, but you have less control over your outdoor space. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. As far as the location goes, buying a condo will give you more flexibility on where to live, because they are slightly cheaper than … 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. 1200. 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. You won’t even need to start shoveling snow in order to get to work or the local mall! How much are you paying for rent now? ", Get My List of TOP Homes in Chester County. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. Instead, he financed with private mortgage insurance (PMI). “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. Yes, condos generally appreciate in value. phone (484)712-0009 phone (484)467-6489. Just take your dog out for a walk, or cycle around and you might just meet a new friend! ), 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. That condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the same location! 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. This includes... © Copyright Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. Published on October 18, 2015. Are you still doubting your financial capability to buy a house of your own? Adam explains it this way: “If it's inside the walls, it's my responsibility. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. Share Tweet Pin LinkedIn Google+ EMAIL. If, like Adam, you’re wondering if buying or renting makes more sense for you, try the math with our calculator. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Then, if and when I decide to move, I’ll have some added flexibility with the extra cash I get from selling.”. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. How much do you know about buying a house? For some people, buying a condo as their first home has advantages. Since your first purchase can feel a little bit overwhelming, here’s a walkthrough of what you should know when purchasing your first condo. But the market went up, and now I have this nice bonus. 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. 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. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. So, are you excited to commit to a new place you can call home? Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. “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. No condo fees, or unexpected assessments! A lower purchase price means a lower down payment and less money to come up with out of your pocket. I am not going to label the condo as better or worse than a single-family house as your first investment. A house is usually located in a much quieter location than a condo, which is a plus if you like peace and being close to nature. 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. This is especially true for condos, which offer a number of fantastic opportunities but also present a range of complex challenges. Share Tweet Pin LinkedIn Google+ EMAIL. “In order to get into the condo sooner rather than later, I put down 5% instead of the full 20% down payment,” he explained. 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. First, You Should Get Pre-Approved. Zillow research claims that rent has significantly grown at about two times the speed of wages. 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,” … Home... Statistics have predicted a better performance this year in the housing sector than all the previous years. 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. First time buyers who don’t consider condos are doing themselves a disservice. So, are you excited to commit to a new place you can call home? Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. "Our experience with Andrea and Melisssa was wonderful. But if your dishwasher dies, there’s no landlord to take care of it: You own the condo, you deal with it. Most first home buyers who decided to purchase a condo will agree that the advantages well outweigh potential downsides. I didn’t go in expecting any appreciation, since the value of condos tends to stay flat. So, are you excited to commit to a new place you can call home? 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. 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. Study up and then test your knowledge! Home; Buying. Lower initial price . All Rights Reserved. Condos can be more affordable options for first time home buyers. 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? Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? First-time homebuyers can get overwhelmed quickly. Why You Should Consider A Condo For Your First Home. If you're a potential first-home buyer, then you know just how confusing the property market can be. Maybe.”. 5 Reasons Why A Condo Makes A Great First Home Ian Bush. 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. Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. The owner of the condo pays only a small portion for building maintenance. 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. I also knew I didn’t want to throw gobs of money at a landlord for rent. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. 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. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. With a condo, you have substantially fewer responsibilities. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Lower costs and included maintenance make condos attractive to first-time home buyers, but compared to single-family houses, condos have risks. We can help answer any tough questions you have. You will have a broader scope of options with the same budget when looking for condos. 2021 RE/MAX Direct. Published on October 18, 2015. In many areas, a condo may be priced a bit lower than the average purchase price of a house. 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? They want people invested. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. "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. 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? So, are you excited to commit to a new place you can call home? 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. You may not have much of a choice with a limited budget. The short answer is: You buy a condo like you would any other home, so it's yours to own. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. How'd you guess? Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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? You’re wasting your time if you head out condo-hunting, but don’t have an accurate measure of what you can honestly afford. By dismissing the idea of condos, buyers limit their choices – and may be limiting their … So, are you excited to commit to a new place you can call home? Search Homes For Sale; Mortgage Calculator; Guide To Buying A Home Readynest reviews all comments to ensure a respectful dialogue, so your comment may take a day to appear. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. “My decision to buy a condo has paid off for me,” Adam said. Read our commenting policy. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. SHARES . Less space means you can easily heat up or cool down your home whenever you need it. 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. 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? Published on October 16, 2015 We'll let you know what's new but we won't clutter up your inbox. We use cookies on this site to enhance your experience. Learning the terms, negotiating the loan market…even if you’re not a first-time buyer, there’s a lot to consider. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. Why? (Am I a middle child? I would rather explore the differences. The only bonus I would have at the end of renting would be my security deposit. There are also other trade-offs to owning a condo. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. “I was a 23-year-old kid who had a short- to mid-term commitment to a general area. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. SHARES . For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. “It’s pretty straightforward, actually,” Adam explained. Opting for a condo is a great investment even when you plan to live in it temporarily. Comparing Condo and House Prices . 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. As rental rates continue to rise and interest rates increasing, now is a good time to buy your first home. We do not post inappropriate or abusive comments. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. 5 Reasons Why A Condo Makes A Great First Home Sophia Polk. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. The right location One of the biggest game changers when deciding on a condo is the location. 5 Reasons Why A Condo Makes A Great First Home Jon C. McBride. As … The chances to meet new friends increase because there are common recreational spaces and areas to mingle in. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. 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. 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. “I’ve gained about 15-20% on my listing. Take the Homebuyer Education Test. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. 5 Reasons Why A Condo Makes A Great First Home Published on October 18, 2015. What to know before you buy a condo. By continuing to use this site you agree with our use of cookies. If they do, then great! Are you ready? Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. No need to … 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. 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. Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. 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.