By Jeff Sugar, Mortgage Loan Officer
Buyers can choose between a traditional house or a condominium when purchasing a home. Aside from location, the housing type is one of the most important decisions you will have to make. Homeowners purchase the house and the land it sits on, whereas condo ownership includes only the living space inside the condo unit and a portion of the common areas of the condo building. There are advantages and disadvantages to both types of housing, and lifestyle and cost can help determine whether a single-family house or a condo is a more suitable dwelling for your needs.
More buyers are deciding to purchase condos over houses in recent years due to a resurgence in urban living. Condos are usually located in urban areas and within walking distance to shops, restaurants and other places of interest. Some also have resort-like amenities, such as pools and fitness centers that would be cost-prohibitive in a house. With people living busier lives, condos are an attractive choice because of their convenience and low-maintenance lifestyle. Association fees cover the exterior and many of the expensive components of the structure, so maintenance is limited to the interior of dwelling.
One major drawback to condo life is association fees, which are collected outside the monthly mortgage payment and used toward building maintenance and amenities. The fees can be expensive and they can increase when extra money for maintenance is needed. Another disadvantage is that all homeowners share in the decision-making process with regard to the condo building. Although many owners seek the sense of community and safety found in condos, some buyers don’t like the rules and restrictions associated with condos.
A big advantage to buying a house is that you have total control over the property to remodel or make changes without the consent of others. Another house advantage is that it allows for extra indoor and outdoor space, which is more conducive to accommodating families, children and pets. Houses also feature more storage space in closets, attics or basements. Houses offer more privacy because neighbors don’t live as close by as they do in condo buildings.
Home ownership has some drawbacks, too. A homeowner is completely responsible for all maintenance inside and outside the property, including care and upkeep of the yard and trees. You must also consider buying extra equipment and tools for maintenance when you purchase a house. Although any improvements you make will likely increase the home’s resale value, they require an investment of time and money. Another disadvantage is that utility bills are generally higher because houses have more space than condos.
Questions? Call 877.312.9033 and a member from our team will be happy to assist you.