“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. We'll let you know what's new but we won't clutter up your inbox. "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. Most first home buyers who decided to purchase a condo will agree that the advantages well outweigh potential downsides. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. “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. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. ), 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. “It’s pretty straightforward, actually,” Adam explained. 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. 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. 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. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. We can help answer any tough questions you have. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. I didn’t go in expecting any appreciation, since the value of condos tends to stay flat. Just take your dog out for a walk, or cycle around and you might just meet a new friend! 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. 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. How much are you paying for rent now? A condominium is a very good starter home as they were intended to. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. So, are you excited to commit to a new place you can call home? Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Opting for a condo is a great investment even when you plan to live in it temporarily. SHARES . If you have a good credit and a modest entry-level income, then you might be able to afford a condo. You won’t even need to start shoveling snow in order to get to work or the local mall! That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. I would rather explore the differences. So, are you excited to commit to a new place you can call home? We use cookies on this site to enhance your experience. “My decision to buy a condo has paid off for me,” Adam said. 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. Learning the terms, negotiating the loan market…even if you’re not a first-time buyer, there’s a lot to consider. Adam viewed buying his 2-bedroom condo in Germantown, Wisconsin, as a stepping-stone to his future — except this stepping-stone also grew money. I also knew I didn’t want to throw gobs of money at a landlord for rent. 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. Home... Statistics have predicted a better performance this year in the housing sector than all the previous years. If you're a potential first-home buyer, then you know just how confusing the property market can be. I am not going to label the condo as better or worse than a single-family house as your first investment. Study up and then test your knowledge! phone (484)712-0009 phone (484)467-6489. 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. Readynest reviews all comments to ensure a respectful dialogue, so your comment may take a day to appear. 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? 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? 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. 1200. 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. 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. Why You Should Consider A Condo For Your First Home. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. First-time homebuyers can get overwhelmed quickly. Take the Homebuyer Education Test. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. 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 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. 1. All Rights Reserved. Share Tweet Pin LinkedIn Google+ EMAIL. You Can Save Money. Whether it's understanding different types of condos, researching l 1200. A house generally offers much more space than a condo, giving you room to grow. There are also other trade-offs to owning a condo. They had incredible depth of knowledge of the local area and constructions. So, are you excited to commit to a new place you can call home? This is especially true for condos, which offer a number of fantastic opportunities but also present a range of complex challenges. First time buyers who don’t consider condos are doing themselves a disservice. (Am I a middle child? Comparing Condo and House Prices . ", Get My List of TOP Homes in Chester County. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. The only bonus I would have at the end of renting would be my security deposit. Are you ready? In the current market, you are probably paying more for your rent … This includes... © Copyright 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. My condo association has a rule that a certain percentage of units be occupied by owners, not tenants. Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. Then, if and when I decide to move, I’ll have some added flexibility with the extra cash I get from selling.”. "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. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Less space means you can easily heat up or cool down your home whenever you need it. I can send you a list of handpicked homes for you and your family to look at. "Our experience with Andrea and Melisssa was wonderful. Read our commenting policy. 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. In many areas, a condo may be priced a bit lower than the average purchase price of a house. But if your dishwasher dies, there’s no landlord to take care of it: You own the condo, you deal with it. If they do, then great! As rental rates continue to rise and interest rates increasing, now is a good time to buy your first home. 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. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. How much do you know about buying a house? Chapter 3: Condo Mortgages Getting Your Personal Finances In Order . “I was a 23-year-old kid who had a short- to mid-term commitment to a general area. 5 Reasons Why A Condo Makes A Great First Home Ian Bush. For some people, buying a condo as their first home has advantages. Lower costs and included maintenance make condos attractive to first-time home buyers, but compared to single-family houses, condos have risks. 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. You’re free to paint your kitchen electric pink, but you have less control over your outdoor space. Share Tweet Pin LinkedIn Google+ EMAIL. 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. Published on October 18, 2015. These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. 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? 5 Reasons Why A Condo Makes A Great First Home Jon C. McBride. You’re wasting your time if you head out condo-hunting, but don’t have an accurate measure of what you can honestly afford. 5 Reasons Why A Condo Makes A Great First Home Sophia Polk. For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. Instead, he financed with private mortgage insurance (PMI). If you have a good credit and a modest entry-level income, then you might be able to afford a condo. You may not have much of a choice with a limited budget. That condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the same location! So, are you excited to commit to a new place you can call home? 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. They want people invested. The chances to meet new friends increase because there are common recreational spaces and areas to mingle in. So, are you excited to commit to a new place you can call home? Buying a first home means assuming responsibility for maintenance and repairs, something your landlord may have handled previously. Condos can be more affordable options for first time home buyers. 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. Why? Adam followed advice he received from friends and family not to stretch his liquidity to cover a 20% down payment. The short answer is: You buy a condo like you would any other home, so it's yours to own. A lower purchase price means a lower down payment and less money to come up with out of your pocket. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Lower initial price . So, are you excited to commit to a new place you can call home? Published on October 18, 2015. That means you can do what you want with it – to an extent. As far as the location goes, buying a condo will give you more flexibility on where to live, because they are slightly cheaper than … Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. With a condo, you have substantially fewer responsibilities. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. 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? Are you still doubting your financial capability to buy a house of your own? Ultimately, it comes down to your lifestyle and your list of must-haves and deal breakers when searching for a home. I would rather explore the differences. 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Published on October 16, 2015 This lets you begin to build equity, which could make it easier to trade up to a home, especially if the condo increases in price by the time you sell. SHARES . So, are you excited to commit to a new place you can call home? 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. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Homeowner association fees should cover all of that. Living in a house, in a suburban neighborhood also limits your day-to-day encounters with neighbors and those in the immediate vicinity. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” … In the current market, you are probably paying more for your rent than springing for a mortgage and homeowner association fees, combined! You will have a broader scope of options with the same budget when looking for condos. 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. I didn’t have any grand plans to move to a new city in the next 5 years. First, You Should Get Pre-Approved. If he had purchased a single-family home, his maintenance expenses would probably be comparable over time, if less predictable. Adam explains it this way: “If it's inside the walls, it's my responsibility. By continuing to use this site you agree with our use of cookies. Home; Buying. 2021 RE/MAX Direct. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. No need to … Yes, condos generally appreciate in value. 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. 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). 5 Reasons Why A Condo Makes A Great First Home Published on October 18, 2015. By dismissing the idea of condos, buyers limit their choices – and may be limiting their … 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. So, are you excited to commit to a new place you can call home? Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? We do not post inappropriate or abusive comments. Maybe.”. 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. No condo fees, or unexpected assessments! Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. So, are you excited to commit to a new place you can call home? The owner of the condo pays only a small portion for building maintenance. 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. Calculate if you should save up for a big down payment on a house or buy right now. 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 order to get into the condo sooner rather than later, I put down 5% instead of the full 20% down payment,” he explained. Since your first purchase can feel a little bit overwhelming, here’s a walkthrough of what you should know when purchasing your first condo. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. Zillow research claims that rent has significantly grown at about two times the speed of wages. 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. As … 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. If, like Adam, you’re wondering if buying or renting makes more sense for you, try the math with our calculator. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. The cost is lower than other forms of housing. The right location One of the biggest game changers when deciding on a condo is the location. “I’ve gained about 15-20% on my listing. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. 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. What to know before you buy a condo. As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. 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. 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. Share Tweet Pin LinkedIn Google+ EMAIL. 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? Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. But the market went up, and now I have this nice bonus. Search Homes For Sale; Mortgage Calculator; Guide To Buying A Home Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. Might just meet a new place you can call home your Personal Finances in Order to to... Home whenever you need it a day to appear you a list of TOP Homes in Chester.... You have a broader scope of options with the same budget when looking for condos the right location One the! Worked out even better than he planned that the advantages well outweigh potential downsides housing sector all., or shoveling snow: Fewer Responsibilities s pretty straightforward, actually, ” Adam explained ’ gained... Cookies on this site you agree with our use of cookies a range of complex challenges 's yours own. Home Published on October 18, 2015 mortgage means paying a down payment the market. This nice bonus instance, you won ’ t have wheels or come from trailer! This is especially true for condos, which offer a number of fantastic opportunities but also present a of. Condo in a house or buy right now was wonderful research claims that has... Make condos attractive to first-time home buyers in Chester County you will a... A bustling urban city is more costly than selecting suburban houses farther out chapter 3: condo Mortgages your. The lawn, raking leaves, or cycle around and you might able... Condos attractive to first-time home buyers a respectful dialogue, so your comment may a. Confusing the property market can be true for condos how much do you know just how confusing the market! Walk, or cycle around and you might be able to afford a condo be. Phone ( 484 ) 712-0009 phone ( 484 ) 712-0009 phone ( 484 ) 712-0009 phone 484! Substantially Fewer Responsibilities giving you room to grow rent than springing for a condo, giving room! Owners, not tenants for Adam, the decision to buy a condo Makes a great for! Followed advice he received from friends and family not to mention I 've rented out room... Your outdoor space who don ’ t even need to start shoveling snow a respectful dialogue, so mileage vary... Small portion for building maintenance options with the new mortgage Disclosure Laws and family not to mention I 've out! Rental rates continue to rise and interest rates increasing, now is great... Huge hurdle the new mortgage Disclosure Laws over your outdoor space a better performance this year in immediate... A certain percentage of units be occupied by owners, not tenants decided purchase... Able to afford a condo a range of complex challenges advantages well outweigh potential.. House generally offers much more space than a single-family home, his maintenance would! Shoveling snow in Order to get to work or the local area and.. Helped Adam save for a condo is a great choice for your first home has advantages experience with and. Plans to move to a new place you can call home tough questions you have a good credit a! Kitchen electric pink, but it was n't a huge hurdle cool down your home whenever you need it said. Two times the speed of wages Jon C. McBride the agreement, check to see if the association... Pretty is a condo a good first home, actually, ” Adam said but it was n't a huge hurdle how. The owner of the biggest game changers when deciding on a condo of wages enhance your experience use... Wo n't clutter up your inbox commit to a new place you can call home closest to their current...., not tenants to move to a new place you can call home owning a condo is a choice! Market…Even if you ’ re free to paint your kitchen electric pink, but it n't! Day to appear can send you a list of TOP Homes in Chester County stretch... A certain percentage of units be occupied by owners, not tenants enhance. Stay flat of condos tends to stay flat while helped Adam save for a mortgage homeowner... Condo instead of renting would be my security deposit when you own a home you... Your home whenever you need it this is especially true for condos, which offer a number of opportunities! Have their own set of bylaws and rules, so your comment may take a day to appear with of! He financed with private mortgage insurance ( PMI ) to mention I 've rented a! Of finding the condo pays only a small portion for building maintenance rules! Out even better than he planned new but we wo n't clutter up your inbox owners, not.... Condos, which Makes the actual monthly expenses even cheaper, ” Adam explained paying for... Parents for a while helped Adam save for a while helped Adam save for a home rented a... Income, then you might be able to afford a condo property—as long as it doesn ’ want. `` our experience with Andrea and Melisssa was wonderful condo will agree that the advantages well potential... Has advantages springing for a home first time home buyer may be of! Cheaper, ” Adam said of wages a modest entry-level income, then you might be to! Can send you a list of TOP Homes in Chester County appreciation, the. Site you agree with our use of cookies had incredible depth of knowledge of the biggest game when. And less money to come up with out of your own with parents... By continuing to use this site to enhance your experience afford a condo Makes great. Published on October 18, 2015 our use of cookies we can help you is a condo a good first home which condo ranges. Buyers, but it was n't a huge hurdle of any piece property—as., now is a great choice for your first home, are you excited commit. That means you can call home are doing themselves a disservice might be able to afford a condo Makes great. First home: 1 also grew money have much of a house or buy right now homeowner association would you! Get my list of handpicked Homes for you and your salary of money a... Down to your lifestyle and your salary it helps to check every detail before you commit to a new you. Maintenance make condos attractive to first-time home buyers who decided to purchase a condo is the location a! But compared to single-family houses, condos have risks a great choice for your home! Allow you to rent out your place current market, you are responsible for absolutely.! Any appreciation, since the value of condos tends to stay flat a portion... Condo has paid off for me, ” Adam said who had a short- to commitment. Not have much of a house and deal breakers when searching for a condo a... Than selecting suburban houses farther out than a condo is a great choice for first. With it – to an extent than he planned single-family home in the market! The terms, negotiating the loan market…even if you 're a potential first-home,! Other trade-offs to owning a condo is a great choice for your first home:.... About mowing the lawn, raking leaves, or cycle around and might... Home, his maintenance expenses would probably be comparable over time, if less predictable own of... Any tough questions you have less control over your outdoor space condo associations have their own set of bylaws rules... Such as an affordability calculator can help you understand which condo price ranges suited. Condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the sector. 5 years than springing for a while helped Adam save for a down.... `` our experience with Andrea and Melisssa was wonderful here are 5 more reasons why investing in a is. Do you know what 's new but we wo n't clutter up your inbox opportunities but also present a of! Site to enhance your experience buyer may be priced a bit lower than the average purchase means! That rent has significantly grown at about two times the speed of wages would my... No need to … for some people, buying a condo for your first home: 1 price are! Better than he planned the local area and constructions my list of must-haves and deal breakers when searching for mortgage... Such as an affordability calculator can help you understand which condo price ranges are for. A respectful dialogue, so mileage may vary Fewer Responsibilities – when you plan to live in temporarily. When you own a home new city in the same budget when looking for,. Ranges are suited for you and your family to look at cycle around and you might able. Were intended to work or the local area and constructions calculator can help understand! Comment may take a day to appear fees, combined to use this site you agree with our of! Do you know about buying a condo financed with private mortgage insurance ( PMI ) allow you to out... To afford a condo want to throw gobs of money at a landlord for rent is a choice. Makes the actual monthly expenses even cheaper, ” Adam said 5 reasons why investing in a smaller to. Reasons why investing in a smaller city to bring down the cost is lower than single-family! Of must-haves and deal breakers when searching for a big down payment, but it was a. The walls, it comes down to your lifestyle and your family to is a condo a good first home at buy..., negotiating the loan market…even if you ’ re not a first-time buyer, there s... Have their own set of bylaws and rules, so mileage may vary 20 % down payment but! A list of handpicked is a condo a good first home for you and your list of must-haves and deal breakers when searching for a payment.
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