Read articles about finances, saving and community news.
Access all the commercial banking resources your business needs to succeed.
by David Leto
May 17, 2018
by David Leto
May 17, 2018
If you're thinking about purchasing a condominium unit or a home then there are a number of differences that you should be aware of before making your decision.
You need to understand what a condominium actually is and how it differs from an apartment or home for starters. There are a number of personal and financial considerations that can tip the scale in favor (and against) condo ownership, so let's get started.
The first upside that a lot of consumers appreciate about owning a condo is that their mortgage payments are far more manageable. Even with a 30-year home mortgage, you could be talking about monthly mortgage payments in the thousands, which would seldom be the case with a condo in most areas.
With a condo, you also don't have to worry about landscaping and trash collection as you normally would with a home. Those kinds of services are usually covered by the condo association and taken care of with your monthly condo assessments.
With both condos and homes, you may pay property taxes. A lot of people might also have a problem with all of the condo association's rules - like what you're allowed to renovate in your unit or the kinds of pets that you're allowed to have in your condo unit.
On the plus side, condo ownership can mean an attractive urban unit in the heart of the city at relatively little monthly expense in terms of mortgage payments and biannual property taxes.
The first pro with a home is that there's usually much more space for you to entertain your guests and do what you like.
You can have as many pets as you want without worrying about condo association rules, and you can have guests stay into the wee hours of the early morning. You'll have more indoor space too with most homes. Any upgrades you make will increase your curb appeal and likely home resale value as well.
The downside is that, although you'll have fewer rules to negotiate, you'll have to maintain your own lawn unless you go with a lawn service.
You might also pay more on a monthly basis as far as mortgage payments or taxes go. It's possible your home could depreciate in value over the lifetime of your investment.
The amount that you're willing to pay towards your mortgage and property taxes, the amount of independence that you need, and the kinds of opportunities in your area will likely determine whether you become a condo or homeowner.
Checking in with real estate professionals, like those at RE/MAX Associates San Antonio, can make the decision easier. If you're still struggling, though, remember that a condo comes with rules and monthly assessments.
Homeownership, on the other hand, likely means more maintenance but the chance to make a healthier profit at closing when you go to sell and independence until you go to do so.