In many areas, a condo may be priced a bit lower than the average purchase price of a house. “I bought a $100,000 condo with a 5% down payment – an amount that’s similar to a car down payment,” he said. You Can Save Money. A first time home buyer may be thinking of finding the condo that is closest to their current workplace. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. Buying a condo as your first home means getting a mortgage loan, and a mortgage means paying a down payment. You will have a broader scope of options with the same budget when looking for condos. "Our experience with Andrea and Melisssa was wonderful. 1200. For instance, you won’t have to worry about mowing the lawn, raking leaves, or shoveling snow. Will My Home Purchase be Delayed with the New Mortgage Disclosure Laws? SHARES . “In order to get into the condo sooner rather than later, I put down 5% instead of the full 20% down payment,” he explained. So, are you excited to commit to a new place you can call home? First time buyers who don’t consider condos are doing themselves a disservice. 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. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Home... Statistics have predicted a better performance this year in the housing sector than all the previous years. 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. Condos can be more affordable options for first time home buyers. phone (484)712-0009 phone (484)467-6489. 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. 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. I can send you a list of handpicked homes for you and your family to look at. 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. Not to mention I've rented out a room, which makes the actual monthly expenses even cheaper,” he said. “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. 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. I also knew I didn’t want to throw gobs of money at a landlord for rent. So, are you excited to commit to a new place you can call home? That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. In the current market, you are probably paying more for your rent … (Am I a middle child? The only bonus I would have at the end of renting would be my security deposit. 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. 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 they do, then great! You may not have much of a choice with a limited budget. “I’ve gained about 15-20% on my listing. 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? "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 are also other trade-offs to owning a condo. No condo fees, or unexpected assessments! 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. Study up and then test your knowledge! Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. “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. Living in a house, in a suburban neighborhood also limits your day-to-day encounters with neighbors and those in the immediate vicinity. Homeowner association fees should cover all of that. First, You Should Get Pre-Approved. I didn’t go in expecting any appreciation, since the value of condos tends to stay flat. 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. Take the Homebuyer Education Test. Adam viewed buying his 2-bedroom condo in Germantown, Wisconsin, as a stepping-stone to his future — except this stepping-stone also grew money. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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? Calculate if you should save up for a big down payment on a house or buy right now. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. 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? If you have a good credit and a modest entry-level income, then you might be able to afford a condo. The short answer is: You buy a condo like you would any other home, so it's yours to own. With a condo, you have substantially fewer responsibilities. 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. Read our commenting policy. If he had purchased a single-family home, his maintenance expenses would probably be comparable over time, if less predictable. Are you ready? Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. “My decision to buy a condo has paid off for me,” Adam said. Zillow research claims that rent has significantly grown at about two times the speed of wages. So, are you excited to commit to a new place you can call home? 5 Reasons Why A Condo Makes A Great First Home Ian Bush. Chapter 3: Condo Mortgages Getting Your Personal Finances In Order . How much do you know about buying a house? Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. 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. These can include: Fewer Responsibilities – When you own a home, you are responsible for absolutely everything. Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. ", Get My List of TOP Homes in Chester County. We do not post inappropriate or abusive comments. Home; Buying. 5 Reasons Why A Condo Makes A Great First Home Sophia Polk. I would rather explore the differences. 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). 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. Whether it's understanding different types of condos, researching l Here are 5 more reasons why investing in a condo is a great choice for your first home: 1. 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. Are you still doubting your financial capability to buy a house of your own? A condominium is a very good starter home as they were intended to. Buying a Condo in 2019 | Pros Vs Cons | First-Time Home Buyer Tips Michael jumps into the Pros and Cons of buying a condo. The right location One of the biggest game changers when deciding on a condo is the location. All Rights Reserved. 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? Published on October 18, 2015. If, like Adam, you’re wondering if buying or renting makes more sense for you, try the math with our calculator. Living with his parents for a while helped Adam save for a down payment, but it wasn't a huge hurdle. 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. 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. ), 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. Share Tweet Pin LinkedIn Google+ EMAIL. 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. SHARES . Most first home buyers who decided to purchase a condo will agree that the advantages well outweigh potential downsides. So, are you excited to commit to a new place you can call home? Adam explains it this way: “If it's inside the walls, it's my responsibility. We can help answer any tough questions you have. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project. Adam explains: “Condo associations have their own set of bylaws and rules, so mileage may vary. You won’t even need to start shoveling snow in order to get to work or the local mall! 1200. The cost is lower than other forms of housing. 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. Maybe.”. What to know before you buy a condo. He chose to buy a condo in a smaller city to bring down the cost of ownership, as well. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary. “It’s pretty straightforward, actually,” Adam explained. For Adam, the decision to purchase a condo instead of renting has worked out even better than he planned. But the market went up, and now I have this nice bonus. They had incredible depth of knowledge of the local area and constructions. If you're a potential first-home buyer, then you know just how confusing the property market can be. 1200. 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. Ultimately, it comes down to your lifestyle and your list of must-haves and deal breakers when searching for a home. So, are you excited to commit to a new place you can call home? As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. 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