Do you dream of owning a home someday soon? If you’ve never bought a home before, it’s worthwhile to consider that homeownership might take a different form than you are anticipating. Instead of the dream of a multi-story house, a green lawn, and a white picket fence, you might want to consider buying a condominium, with all the amenities, in a nice area in the suburbs.
If you’re on the fence about getting a house or a condo, here are five reasons to choose the latter.
1. Condos Are More Cost-Effective Than Houses
If you want to buy a place of your own and are on a tight budget, consider purchasing a condo. Case in point: According to the National Association of Realtors, the median existing single-family home price was $380,000 in March 2023, while the existing median condominium price for the same period was $337,300. A condo can be cheaper if you want to get into the housing market and are on a tight budget.
Of course, there are high-end condos from West Palm Beach to New York City, Los Angeles to Nashville, and San Francisco to elsewhere in the U.S. But if you’re looking for a good deal, you can find the best prices in the condos segment.
2. Home Insurance Cheaper for Condos Than for Houses
Another way you can save if you buy a condo rather than buy a house is on homeowners insurance. It’s usually more cost-effective to acquire homeowners insurance for the former than for the latter. Why? One reason is that condo owners are only responsible for the interior of their units while their respective homeowners associations (HOA) are responsible for the exterior, such as the roofing and the siding. If you own a house, you’ll be responsible for the interior and exterior, which will factor into the higher homeowners insurance.
3. Condo Owners Don’t Have to Worry About Exterior Maintenance
If you buy a condo, you won’t have to shoulder responsibility for exterior maintenance. It can be costly and time-intensive to independently find contractors to do your roof, fix your siding, or do other things on the exterior of your property. But as a condo owner, you can rest assured that the HOA will assume responsibility for the required exterior maintenance and repairs.
Condo owners typically pay, in addition to a mortgage, a monthly maintenance fee that covers these exterior projects. You must care for appliances, the furnace, and the air conditioner. But you won’t have to worry about anything outside of your unit. If you own a house, you must be responsible for interior and exterior maintenance and repairs.
4. You’ll Have Access to More Amenities in a Condo
One of the main benefits of buying a condo is that you’ll have access to various amenities. For instance, the condo might have an exercise room, a party room for gatherings, a swimming pool, a sauna, and other perks that make living in a condo a great experience. Buying a house with these amenities or adding these amenities to a house you own might be cost-prohibitive.
5. Owning Condo Can Be Less Stressful for First-Time Homeowners
Getting a condo might be a good option if, as a first-time homebuyer, you want to make things less stressful. You will be a homeowner but won’t have to do everything yourself. If you don’t find the HOA rules too restrictive, you’ll benefit from help with maintenance and repairs. It can be a great way to ease yourself into the responsibilities of owning a home. Of course, it won’t be free since you’ll pay a monthly maintenance fee. But you’ll get value for your investment.
When the time comes to buy a home, you’ll have lots of options. After looking at the information above, you might decide to include condos among your new home options.