Condominium or house:
Which is right for you?
Be it in New York, Atlanta or Miami, the condominium market
is thriving, with modern towers and low mortgage rates luring
would-be home buyers with the possibility of building equity at
rent-like prices.
Should you join the condo club or go for a more traditional
home? Consider your lifestyle and weigh the pros and cons of
each before deciding which to buy.
Condominiums
| Pros |
Cons |
| Easy upkeep: Do you lead
a busy life? A condo can offer you a comfortable home
free of yard-work and home-maintenance responsibilities.
If you’re not a hands-on, do-it-yourselfer, having a
maintenance crew take care of the upkeep is a definite
plus. |
Condo fees: Most
condominiums have monthly maintenance fees. The money
goes toward the collective upkeep and development of the
property. Combine these fees with monthly mortgage
payments and you can sometimes end up paying more per
month for a condo than a house of equal value. |
| Location: A condo
provides the option of living right in the heart of the
city. Many urban condos are also within easy walking
distance of amenities such as grocery stores, dry
cleaners, restaurants, cafes, shops and theaters. A home
in the suburbs can mean jumping in the car to complete
even the smallest of errands. |
Shared decision-making:
How your condo fees are spent is the purview of the
condominium board. You could find yourself subsidizing
the salary of a concierge or the maintenance of a
parking garage you don’t use. And what if you want to
do some renovations? Yes, the condo board decides that,
too. |
Houses
| Pros |
Cons |
| Family friendly: With
their own yards and generally more square-footage,
houses tend to be more family friendly. A fenced-in
backyard for children to play in can be a big benefit.
Plus, a house allows the option of having pets that may
not be permitted in a condo. |
Upkeep: When you own
your own house, you’re responsible for all the
maintenance. The bigger your property, the more time and
money you can end up sinking into it. The upside is that
money you put into home improvements will likely pay off
in terms of a higher resale value. |
| Extra living space: Not
only do kids need space, so do most grown-ups. If
you’re a couple, you have to determine how much time
you will be spending together at home and whether or not
you need quiet, private rooms. The same is true if you
work from home or have a hobby that requires dedicated
space. |
Additional items: All
the extra space a house provides can have a downside.
You need to fill that space with additional furniture.
You also need to buy extra items to maintain the garden.
And you can expect to have higher heating and/or cooling
costs with a bigger home. |
Of course, regardless of whether you buy a house or a condo,
It's important to do your homework and consider the future of
the neighborhood you’re buying into. The old axiom of
"location, location, location" remains true for both.
Each is a significant investment, and you need to find a safe
and vibrant neighborhood capable of nurturing your investment
into the future.
Use our free mortgage payment calculators:
1.How much do I have to earn?
Not sure how much money you'll have to earn to afford your house payment and accompanying expenses?
2.Mortgage payment calculator
Want to know how much your monthly payment is for your mortgage?
3.Bi-weekly mortgage calculator
Want to know how much time and money you'll save paying off your loan on a bi-weekly payment plan?
4.Additional payment calculator
How much do you save by paying more or making additional payments than your initial mortgage terms?
5.How much can I borrow?
Want to know how big of a mortgage you can take on?
6.Should I pay discount points?
Not sure if you should pay discount points on your mortgage loan?
7.How much will I save by refinancing my loan?
How long will it take to recoup the costs of refinancing my home mortgage?
8.How much will my tax deduction be?
Want to know how much your home mortgage will save you in taxes?
9.APR calculator
To find out the annual percentage rate of your loan, enter the loan amount, interest rate, points, other costs and year-length term.
10.Interest only monthly payment calculator
To find out the monthly savings you could gain from an interest-only payment plan. |
