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. 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. Calculate if you should save up for a big down payment on a house or buy right now. 1200. You won’t even need to start shoveling snow in order to get to work or the local mall! Search Homes For Sale; Mortgage Calculator; Guide To Buying A Home 5 Reasons Why A Condo Makes A Great First Home Published on October 18, 2015. I didn’t have any grand plans to move to a new city in the next 5 years. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Whether it's understanding different types of condos, researching l Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. 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. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. This is especially true for condos, which offer a number of fantastic opportunities but also present a range of complex challenges. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. I would rather explore the differences. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. Then, if and when I decide to move, I’ll have some added flexibility with the extra cash I get from selling.”. No condo fees, or unexpected assessments! 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. So, are you excited to commit to a new place you can call home? 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). Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. I also knew I didn’t want to throw gobs of money at a landlord for rent. By continuing to use this site you agree with our use of cookies. “My decision to buy a condo has paid off for me,” Adam said. First, You Should Get Pre-Approved. 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. Comparing Condo and House Prices . 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. So, are you excited to commit to a new place you can call home? Zillow research claims that rent has significantly grown at about two times the speed of wages. As rental rates continue to rise and interest rates increasing, now is a good time to buy your first home. Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? For example, an association fee of $250 monthly is comparable to an additional $50,000 on a 30-year mortgage with a 4.5% interest rate. Home; Buying. Ultimately, it comes down to your lifestyle and your list of must-haves and deal breakers when searching for a home. By dismissing the idea of condos, buyers limit their choices – and may be limiting their … We can help answer any tough questions you have. So, are you excited to commit to a new place you can call home? Published on October 18, 2015. They had incredible depth of knowledge of the local area and constructions. “I’ve gained about 15-20% on my listing. 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. You will have a broader scope of options with the same budget when looking for condos. 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. Less space means you can easily heat up or cool down your home whenever you need it. Lower initial price . If you have a good credit and a modest entry-level income, then you might be able to afford a condo. 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. What to know before you buy a condo. 1200. 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. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Home... Statistics have predicted a better performance this year in the housing sector than all the previous years. We do not post inappropriate or abusive comments. The only bonus I would have at the end of renting would be my security deposit. These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. Read our commenting policy. We use cookies on this site to enhance your experience. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. How much are you paying for rent now? 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. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” … As I have seen in my experience as an investor—and initially as a part-time investor in my early days—condos may be good investments, but they do behave and perform a little differently. A house generally offers much more space than a condo, giving you room to grow. 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. How much do you know about buying a house? As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. For some people, buying a condo as their first home has advantages. So, are you excited to commit to a new place you can call home? The short answer is: You buy a condo like you would any other home, so it's yours to own. 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. 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. 1. They want people invested. (Am I a middle child? 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? Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. Study up and then test your knowledge! Opting for a condo is a great investment even when you plan to live in it temporarily. Since your first purchase can feel a little bit overwhelming, here’s a walkthrough of what you should know when purchasing your first condo. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. A condominium is a very good starter home as they were intended to. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. I am not going to label the condo as better or worse than a single-family house as your first investment. “I was a 23-year-old kid who had a short- to mid-term commitment to a general area. For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. 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. 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. Published on October 18, 2015. 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 may not have much of a choice with a limited budget. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Adam followed advice he received from friends and family not to stretch his liquidity to cover a 20% down payment. If he had purchased a single-family home, his maintenance expenses would probably be comparable over time, if less predictable. You’re wasting your time if you head out condo-hunting, but don’t have an accurate measure of what you can honestly afford. Adam explains it this way: “If it's inside the walls, it's my responsibility. Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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