Buying A Condo: The Pros And Cons
What Is A Condo?
Before diving into the pros and cons of buying a condo, lets first discuss what exactly a condo is. A condo, or condominium, is one unit within a larger community of like units. Condos can be within a high-rise building or as detached properties. Condo owners have communal use of areas like parking garages, pools, gyms, etc.
What Are The Advantages Of Purchasing A Condo?
Condos can often be found in metro areas, where the purchase of a condo allows easy access to attractive business or entertainment venues.
Owning a condo is similar to an apartment lifestyle, but you can build equity. Because condos typically exist in a community with similar units, you get the advantage of the amenities and community that apartment living offers. However, you are able to build the same equity as a single-family homeowner when you purchase a condo.
Condos typically do not have a lawn that needs maintenance; therefore, owners save time and money when it comes to snow removal or springtime landscaping.
What Are The Disadvantages Of Purchasing A Condo?
HOAs. Homeowners associations are wonderful when it comes to taking care of the maintenance of shared spaces of the condo. However, HOAs are typically associated with high fees and strict rules.
Close proximity. For the condos that are nestled in high-rise buildings, shared walls can feel like a deterrent to some house shoppers.
Limits. Condos can place limits on the size and number of pets. There are also typically limits on the number of parking spaces each condo owner is granted. Finally, storage space is limited in a condo as compared to a home with a basement, garage, or attic.
What Types Of Loans Can Be Used To Finance A Condo?
Conventional, FHA, USDA, and VA loans can be used to finance your condo purchase. However, each loan type has different criteria for what qualifies as an eligible condo. Your loan officer will be able to assist you in determining eligibility and finding the right mortgage product for you.
Ultimately, a condo can be a great choice for someone looking to purchase real estate. They have many advantages and can be the perfect option for the right buyer. In many ways, condos differ from single-family properties, but that’s exactly what can make them a desirable option for some house hunters!