Is there a smarter way to enjoy the luxuries that come along with renting an apartment, while still making the investment that comes along with homeownership? Yes! Condo owners know that they can enjoy the benefits of amenities like a pool and gym, absolutely zero yard work, and great security all while not throwing money away each month on rent. Condominiums are a better financial investment than renting. When you rent, you don't earn anything from the transaction except a place to stay during the time of the lease. When you purchase a condo, you are paying toward your equity in your home. Equity is the amount that you have paid toward your home's total value. Each month you pay more and therefore can make more when you are ready to sell. However, many people have misconceptions about condos that prevent them from taking the plunge into condo ownership.
Misconception 1: You Can't Finance A Condo
There are many financing options available for condos. The Mortgage Reports explains that the process of buying a condo with a conventional loan might have an extra step. Your lender may require that your condominium fill out a form to certify that they meet certain standards such as having appropriate insurance and units that are over 400 sq ft. If you have prior military experience, you can also apply for a VA loan, which can cover an ever broader range of condos.
Misconception 2: Sharing Walls Isn't Ideal
Condo owners are typically very responsible people who either have a high enough credit score to qualify for financing or enough cash to purchase their home outright. You will likely find that the average condominium owner is a responsible and respectful neighbor. While many people think of high-rise buildings when they consider condo ownership, there are also many townhouse style condos which limit shared walls between neighbors.
Misconception 3: Condos Cost Too Much
The National Association of Realtors states that condo ownership is frequently more affordable than buying a house for many people, such as first time home buyers. Single-family homes are often very large, which makes them more expensive. Not only is the purchase price expensive, but maintenance costs like heating and air conditioning bills on a big house can add up over time. Condos usually have lower insurance costs and cost-sharing programs to cover big events like tree damage so that every resident pays a small amount toward repairs.
Buying a condo is a great choice to enjoy a low maintenance lifestyle while still making a sound financial investment. To learn more about condo ownership and start your journey to find your dream home, you can contact a licensed real estate agent in your area. They will walk you through the process of finding condominiums for sale and help you achieve your dream home.