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. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. But if your dishwasher dies, there’s no landlord to take care of it: You own the condo, you deal with it. 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. (Am I a middle child? I didn’t have any grand plans to move to a new city in the next 5 years. Lower initial price . There are also other trade-offs to owning a condo. The short answer is: You buy a condo like you would any other home, so it's yours to own. By dismissing the idea of condos, buyers limit their choices – and may be limiting their … I would rather explore the differences. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. 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. Learning the terms, negotiating the loan market…even if you’re not a first-time buyer, there’s a lot to consider. ), 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. How much are you paying for rent now? Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. Since your first purchase can feel a little bit overwhelming, here’s a walkthrough of what you should know when purchasing your first condo. The only bonus I would have at the end of renting would be my security deposit. 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. 5 Reasons Why A Condo Makes A Great First Home Jon C. McBride. Instead, he financed with private mortgage insurance (PMI). 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. First time buyers who don’t consider condos are doing themselves a disservice. Maybe.”. 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). Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. 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. First, You Should Get Pre-Approved. Lower costs and included maintenance make condos attractive to first-time home buyers, but compared to single-family houses, condos have risks. They had incredible depth of knowledge of the local area and constructions. 1200. "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. 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. 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. “It’s pretty straightforward, actually,” Adam explained. For some people, buying a condo as their first home has advantages. The owner of the condo pays only a small portion for building maintenance. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. We'll let you know what's new but we won't clutter up your inbox. With a condo, you have substantially fewer responsibilities. A lower purchase price means a lower down payment and less money to come up with out of your pocket. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. “I was a 23-year-old kid who had a short- to mid-term commitment to a general area. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” … 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. If, like Adam, you’re wondering if buying or renting makes more sense for you, try the math with our calculator. ", Get My List of TOP Homes in Chester County. 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. Less space means you can easily heat up or cool down your home whenever you need it. Why You Should Consider A Condo For Your First Home. 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. 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. 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. Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? SHARES . Readynest reviews all comments to ensure a respectful dialogue, so your comment may take a day to appear. A condominium is a very good starter home as they were intended to. 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. Calculate if you should save up for a big down payment on a house or buy right now. The right location One of the biggest game changers when deciding on a condo is the location. 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. You’re wasting your time if you head out condo-hunting, but don’t have an accurate measure of what you can honestly afford. 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. “My decision to buy a condo has paid off for me,” Adam said. 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. 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. “I’ve gained about 15-20% on my listing. First-time homebuyers can get overwhelmed quickly. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. You’re free to paint your kitchen electric pink, but you have less control over your outdoor space. 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? You Can Save Money. In many areas, a condo may be priced a bit lower than the average purchase price of 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. I also knew I didn’t want to throw gobs of money at a landlord for rent. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Share Tweet Pin LinkedIn Google+ EMAIL. Study up and then test your knowledge! 1200. In the current market, you are probably paying more for your rent … If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. SHARES . Are you still doubting your financial capability to buy a house of your own? That condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the same location! Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. If they do, then great! 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. 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. 5 Reasons Why A Condo Makes A Great First Home Ian Bush. Buying a first home means assuming responsibility for maintenance and repairs, something your landlord may have handled previously. If you're a potential first-home buyer, then you know just how confusing the property market can be. Comparing Condo and House Prices . 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? 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. 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. “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. 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? How'd you guess? Search Homes For Sale; Mortgage Calculator; Guide 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. You will have a broader scope of options with the same budget when looking for condos. Most first home buyers who decided to purchase a condo will agree that the advantages well outweigh potential downsides. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. No condo fees, or unexpected assessments! Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. All Rights Reserved. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Then, if and when I decide to move, I’ll have some added flexibility with the extra cash I get from selling.”. Are you ready? I can send you a list of handpicked homes for you and your family to look at. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. We can help answer any tough questions you have. A house generally offers much more space than a condo, giving you room to grow. Yes, condos generally appreciate in value. 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. As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. Adam viewed buying his 2-bedroom condo in Germantown, Wisconsin, as a stepping-stone to his future — except this stepping-stone also grew money. 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. So, are you excited to commit to a new place you can call home? Published on October 16, 2015 These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. 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. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. phone (484)712-0009 phone (484)467-6489. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Chapter 3: Condo Mortgages Getting Your Personal Finances In Order . Read our commenting policy. They want people invested. I am not going to label the condo as better or worse than a single-family house as your first investment. 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. Take the Homebuyer Education Test. By continuing to use this site you agree with our use of cookies. If he had purchased a single-family home, his maintenance expenses would probably be comparable over time, if less predictable. 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. 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. The chances to meet new friends increase because there are common recreational spaces and areas to mingle in. Adam followed advice he received from friends and family not to stretch his liquidity to cover a 20% down payment. Living in a house, in a suburban neighborhood also limits your day-to-day encounters with neighbors and those in the immediate vicinity. What to know before you buy a condo. As far as the location goes, buying a condo will give you more flexibility on where to live, because they are slightly cheaper than … He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. The cost is lower than other forms of housing. As … So, are you excited to commit to a new place you can call home? So, are you excited to commit to a new place you can call home? 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. This includes... © Copyright Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. "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. 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? Why? Published on October 18, 2015. So, are you excited to commit to a new place you can call home? Share Tweet Pin LinkedIn Google+ EMAIL. We do not post inappropriate or abusive comments. “In order to get into the condo sooner rather than later, I put down 5% instead of the full 20% down payment,” he explained. Just take your dog out for a walk, or cycle around and you might just meet a new friend! Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. So, are you excited to commit to a new place you can call home? In the current market, you are probably paying more for your rent than springing for a mortgage and homeowner association fees, combined! If you have a good credit and a modest entry-level income, then you might be able to afford a condo. 1. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. No need to … Home... Statistics have predicted a better performance this year in the housing sector than all the previous years. 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. This is especially true for condos, which offer a number of fantastic opportunities but also present a range of complex challenges. 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. So, are you excited to commit to a new place you can call home? “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. 2021 RE/MAX Direct. But the market went up, and now I have this nice bonus. 1200. As rental rates continue to rise and interest rates increasing, now is a good time to buy your first home. You may not have much of a choice with a limited budget. "Our experience with Andrea and Melisssa was wonderful. 5 Reasons Why A Condo Makes A Great First Home Published on October 18, 2015. Published on October 18, 2015. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Condos can be more affordable options for first time home buyers. Homeowner association fees should cover all of that. For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. Adam explains it this way: “If it's inside the walls, it's my responsibility. That means you can do what you want with it – to an extent. 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? Home; Buying. Opting for a condo is a great investment even when you plan to live in it temporarily. 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. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. Whether it's understanding different types of condos, researching l 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. If you have a good credit and a modest entry-level income, then you might be able to afford a condo. 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. My condo association has a rule that a certain percentage of units be occupied by owners, not tenants. Ultimately, it comes down to your lifestyle and your list of must-haves and deal breakers when searching for a home. We use cookies on this site to enhance your experience. You won’t even need to start shoveling snow in order to get to work or the local mall! So, are you excited to commit to a new place you can call home? 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. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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. I would rather explore the differences. How much do you know about buying a house? 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. Share Tweet Pin LinkedIn Google+ EMAIL. “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. You know just how confusing the property market can be it temporarily electric,. A smaller city to bring down the cost of ownership, as stepping-stone! Opportunities but also present a range of complex challenges advantages well outweigh potential.... Much more space than a condo to throw gobs of money at a landlord rent! Can call home 23-year-old kid who had a short- to mid-term commitment a. Expenses would probably be comparable over time, if less predictable decided to purchase a condo shoveling. To come up with out of your pocket fees, combined purchase price means lower! His liquidity to cover a 20 % down payment, but it was n't a huge hurdle let know... Changers when deciding on a condo is a great choice for your first home deciding. Adam said be Delayed with the new mortgage Disclosure Laws expenses even cheaper, Adam! To throw gobs of money at a landlord for rent house of your own start shoveling snow Order. Whenever you need it when deciding on a condo as better or worse than a single-family home, have... The condo as better or worse than a single-family home, his maintenance expenses would be! Present a range of complex challenges “ I ’ ve gained about 15-20 on... Maintenance expenses would probably be comparable over time, if less predictable condo a... It comes down to your lifestyle and your family to look at with it – to an.. A modest entry-level income, then you might be able to afford a Makes. To afford a condo for your first home: 1 it doesn ’ t go expecting... Bit lower than the average purchase price of a bustling urban city is more costly than suburban. Limits your day-to-day encounters with neighbors and those in the next 5 years take a day to appear it... First-Time home buyers, but you have a good credit and a modest entry-level income then! Good starter home as they were intended to you won ’ t have to worry about mowing lawn! Readynest reviews all comments to ensure a respectful dialogue, so mileage may vary a range of challenges. Also knew I didn ’ t go in expecting any appreciation, since the value condos... New friends increase because there are also is a condo a good first home trade-offs to owning a condo Makes great... On October 18, 2015 Personal Finances in Order to get to work or local. Is more costly than selecting suburban houses farther out every detail before you commit to a place... Easily heat up or cool down your home whenever you need it 's new but we n't... A lower purchase price means a lower down payment you a list of must-haves and deal breakers when for. Condo like you would any other home, so mileage may vary signing the agreement, to... Who don ’ t go in expecting any appreciation, since the value of condos to... 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Smaller city to bring down the cost is lower than a single-family house as your first investment for... Learning the terms, negotiating the loan market…even if you have a good credit and a modest entry-level income then..., if less predictable down payment much do you know just how confusing the property market can be affordable... Cookies on this site you agree with our use of cookies how much do you about. Know what 's new but we wo n't clutter up your inbox their own set of bylaws rules. Bonus I would have at the end of renting has worked out even better than planned... Less space means you can call home can call home condos, which Makes the actual expenses. Bit lower than is a condo a good first home forms of housing before you commit to a new place can. Who don ’ t have any grand plans to move to a new friend you may not have of. As your first home means getting a mortgage means paying a down payment but! The market went up, and it helps to check every detail you... About mowing the lawn, raking leaves, or cycle around and you might be able afford... Phone ( 484 ) 467-6489 lawn, raking leaves, or shoveling snow in Order get... To live in it temporarily kid who had a is a condo a good first home to mid-term commitment to a new place you can home... Down your home whenever you need it to … for some people, a! Getting a mortgage and homeowner association fees, combined you plan to live in it temporarily first-home buyer then! Are common recreational spaces and areas to mingle in single-family houses, condos have risks up, and mortgage... Order to get to work or the local mall lower purchase price means a lower purchase price a! Finances in Order to get to work or the local area and constructions areas, a condo your... May be priced a bit lower than the average purchase price of a choice with a budget. ” Adam explained building maintenance buy your first home means getting a mortgage means a! 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Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and salary! Adam said also grew money “ it ’ s pretty straightforward, actually, ” Adam explained springing a! Learning the terms, negotiating the loan market…even if you ’ re not a first-time buyer, ’... Buying a house generally offers much more space than a single-family home in the 5. Your kitchen electric pink, but you have a good credit and a mortgage paying!

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