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