If you feel like you are ready to buy property and own real estate, you should know that it is a big step and that you need to think this decision through. It is a great way to invest your hard earned money and increase its value over time.
However, real estate has a more practical purpose – you can live in it. Before you go in to buy a home of your own, you have to make a decision – should you buy a house or a condo? Naturally, there are some advantages and drawbacks to either, so consider them carefully before you make a decision.
When it comes to condos, it is important to know that you do not buy the land the building was constructed on, but only the living unit itself, as well as a part of the common space like the hallways and the basement (if it exists). Condos tend to be in city centers like these https://www.homesalessandiego.com/downtown/, and they are getting more and more popular as the culture of urban life is slowly returning to supplant suburban life.
If you decide to buy a condo, you will likely be a lot closer to the city center, which is why the most likely buyers of condos are young people who don’t have children or possibly have only one child. These people want to enjoy the proximity of various cultural and entertainment options that they urban life brings with it. Another thing that attracts young people more than families are the amenities like pools and gyms shared between the tenants of the condominium.
Drawbacks of Buying a Condo
The biggest and most notable drawback of living in a condo is the maintenance cost. Most condos call it the association fee and it is paid on top of the mortgage payments. Your mortgage goes to the bank, whereas the association fee goes to the building management for maintenance of the building.
Another important thing to notes is that you will need to cooperate with other tenants if you want to have anything done with the building itself. In addition, there are rules which you will need to stick to.
The majority of houses are located in the suburbs and are fairly far away from the bustle and noise of the city. This is a great place to raise children, which is why houses are usually preferred by families with more than one child. Not only are houses safer for raising children, they are also typically bigger than condos.
However, what most house owners tout as the best thing about owning a house is being solely responsible for the house, meaning that any additions, remodeling or even repainting is entirely up to your discretion, rather than depending on other people agreeing. Not only are you the owner of the house, you also own the land your house is built on, meaning you can control what happens to it as well.
Drawbacks of Buying a House
The drawbacks of owning a house are largely financial in nature. Houses are typically bigger than condos, meaning that the bills are going to be bigger as well, which is to be expected. However, you need to remember that you are responsible for the whole house on your own. That means that any maintenance and upkeep costs are directed to you.
Seeing how houses are bigger, the initial cost of a house will likely be higher too, so be sure that you are financially ready to pay off your house for a long time. However, once you do, you will have a pretty valuable asset in your portfolio which you can sell later on for a lot of money.
Whichever type of home you choose, make sure that it is the right one for you.