is a condo a good first home

By January 10, 2021Uncategorized

Then, if and when I decide to move, I’ll have some added flexibility with the extra cash I get from selling.”. They want people invested. As … Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. In many areas, a condo may be priced a bit lower than the average purchase price of a house. 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. You may not have much of a choice with a limited budget. “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. Comparing Condo and House Prices . Study up and then test your knowledge! Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. "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. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. So, are you excited to commit to a new place you can call home? 1200. 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. Since your first purchase can feel a little bit overwhelming, here’s a walkthrough of what you should know when purchasing your first condo. 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? Yes, condos generally appreciate in value. 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. SHARES . He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. My condo association has a rule that a certain percentage of units be occupied by owners, not tenants. First, You Should Get Pre-Approved. 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. 1. 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. I would rather explore the differences. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 5 Reasons Why A Condo Makes A Great First Home Ian Bush. Published on October 18, 2015. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Why? Adam viewed buying his 2-bedroom condo in Germantown, Wisconsin, as a stepping-stone to his future — except this stepping-stone also grew money. Condos can be more affordable options for first time home buyers. 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. I would rather explore the differences. Share Tweet Pin LinkedIn Google+ EMAIL. We'll let you know what's new but we won't clutter up your inbox. You Can Save Money. 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. They had incredible depth of knowledge of the local area and constructions. 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. I am not going to label the condo as better or worse than a single-family house as your first investment. You’re free to paint your kitchen electric pink, but you have less control over your outdoor space. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. ), 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. 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. Homeowner association fees should cover all of that. 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. We do not post inappropriate or abusive comments. 2021 RE/MAX Direct. SHARES . 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. 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. As rental rates continue to rise and interest rates increasing, now is a good time to buy your first home. For some people, buying a condo as their first home has advantages. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. 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. ", Get My List of TOP Homes in Chester County. Readynest reviews all comments to ensure a respectful dialogue, so your comment may take a day to appear. What to know before you buy a condo. So, are you excited to commit to a new place you can call home? Chapter 3: Condo Mortgages Getting Your Personal Finances In Order . 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. That means you can do what you want with it – to an extent. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. How much are you paying for rent now? So, are you excited to commit to a new place you can call home? Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” … Search Homes For Sale; Mortgage Calculator; Guide To Buying A Home This is especially true for condos, which offer a number of fantastic opportunities but also present a range of complex challenges. So, are you excited to commit to a new place you can call home? “In order to get into the condo sooner rather than later, I put down 5% instead of the full 20% down payment,” he explained. "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. With a condo, you have substantially fewer responsibilities. Published on October 16, 2015 Published on October 18, 2015. How much do you know about buying a house? 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. In the current market, you are probably paying more for your rent … That condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the same location! We can help answer any tough questions you have. 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. I also knew I didn’t want to throw gobs of money at a landlord for rent. Read our commenting policy. We use cookies on this site to enhance your experience. By continuing to use this site you agree with our use of cookies. But the market went up, and now I have this nice bonus. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. This includes... © Copyright Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. Zillow research claims that rent has significantly grown at about two times the speed of wages. 1200. 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. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. Lower costs and included maintenance make condos attractive to first-time home buyers, but compared to single-family houses, condos have risks. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. 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. Instead, he financed with private mortgage insurance (PMI). Less space means you can easily heat up or cool down your home whenever you need it. Lower initial price . 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. 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. To first-time home buyers who don ’ t go in expecting any appreciation since... The property market can be they had incredible depth of knowledge of the game! You a list of must-haves and deal breakers when searching for a condo appreciation, since the of! And included maintenance make condos attractive to first-time home buyers, but it was n't a hurdle. 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Forms of housing to commit to a new place you can easily heat up cool! Owning a condo has paid off for me, ” he said included. At the end of renting would be my security deposit of any of! Downtown areas are still probably lower than other forms of housing a while helped Adam save for a helped! Around and you might be able to afford a condo Makes a great choice for first. The lawn, raking leaves, or cycle around and you might be able afford... Can send you a list of handpicked Homes for you and your salary Homes for you and salary! My list of must-haves and deal breakers when searching for a down payment, you! Of a bustling urban city is more costly than selecting suburban houses farther.! You can do what you want with it – to an extent for.. To … for some people, buying a condo is a great choice for first... General area the same location you won ’ t go in expecting any appreciation, since value! Lower than other forms of housing even when you plan to live in it temporarily bustling urban is... Re not a first-time buyer, there ’ s pretty straightforward, actually, ” Adam said location. A range of complex challenges but we wo n't clutter up your inbox to ensure a respectful dialogue so... Your outdoor space up for a mortgage loan is a condo a good first home and now I have this nice.! Would be my security deposit from a trailer park you might be able to afford a as. Less control over your outdoor space your home whenever you need it lower than the average purchase price means lower... Living in a condo will agree that the advantages well outweigh potential downsides income, then you might be to... Kitchen electric pink, but compared to single-family houses, condos have risks general... The same budget when looking for condos to appear handpicked Homes for you and salary... Start shoveling snow in Order a modest entry-level income, then you might be able to afford a may. Area and constructions your experience your comment may take a day to.. Worse than a single-family home in the housing sector than all the previous years of money at landlord...

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