One option a prospective home buyer may consider is a condominium, or a condo for short. Condos are often confused with apartments and while they do have similarities, condos are considered their own category of real estate. While apartments are leased through a landlord, condos are privately owned and located in a larger community.
Condos are the perfect option for those who want to own their space, but aren’t quite ready for homeownership. They are also great second homes for frequent travelers to a certain destination, as they need little upkeep.
Are you thinking of buying a condo? We have curated a list of the pros and cons of buying a condo in order to help you make the best decision for your lifestyle.
The Pros of Buying a Condo
Here are a few of the pros to buying and owning a condo.
1. Maintenance and repairs off your plate
Condos allow the owners to build equity, while not being responsible for maintenance and upkeep. Your condo will maintain the landscape and take care of any repairs needed. This does come with a monthly fee, but the benefits often outweigh the cost.
2. Luxurious amenities
You are a co-owner of all the shared spaces at your condo. This could be a basketball court, a luxury swimming pool, or even a tennis court. These are amazing amenities you probably wouldn’t get with a traditional home.
3. Affordability
Condos are typically more affordable than single family homes. The average cost of a condo in 2021 is $289,000, whereas the average cost of a single family home is $334,500.
4. Move-in ready
Many condos come fully furnished. This will remove the stress of finding new furniture and paying for movers to get it in your new space.
5. Sense of community
People who live in condos are typically very close with their neighbors. They see each other using the amenities everyday and are only a few steps away from each other at all times. If you are looking for a tight sense of community, a condo might be best for you.
6. Security
Condos often have 24/7 security. They also typically have call boxes, guard shacks, and doormen. The added security will give you an added sense of safety in your home.
7. Build equity
Perhaps the biggest reason people turn to condos instead of apartments is that condos are owned, therefore you can earn equity on your purchase. This can set you up for financial success in the future.
The Cons of Buying a Condo
Now that you know the positives of owning a condo, let’s discuss some of the negatives.
1. Fees
The luxury amenities of condos come with required fees. Do not forget to factor these fees into your budget as they can add up quickly.
2. Condo association regulations
When living in a condo, you have to follow the condo’s rules. This is much like how landlords have rules for their rental properties. There could be a no pets rule, a one car rule, or even a rule that limits how many guests you can invite over. Make sure you are aware of any rules before purchasing a condo.
3. Resale challenges
Condos often have a hard time reselling because of the few people interested in this type of living situation. Families often don’t want to raise their children in a condo and other potential buyers are concerned about rising fees. Condos have a very small pool of potential buyers.
4. Lack of privacy
As with any complex where people are living with shared walls, there is little privacy. This is a turn off for many potential buyers.
5. Limited storage
If you are looking for lots of storage space, a condo might not be the best option for you, as they are typically much smaller than a single family home. Some complexes allow you to purchase additional storage, but once again, that comes with an added fee.
Ultimately, condos require a specific buyer. If you are looking to build equity in a tight knit community or have a second home, a condo might be great for you. If you need extra storage space and prefer a home with high resale value, it may be best if you stick to a single family home. Consider your personal needs and lifestyle before deciding to buy a condominium.
Author Bio:
Lily Scott is a content creator living in New York City. When she isn’t creating content, she is busy running her online boutique and cuddling with her cats.