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

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