When it comes to buying a house, most people automatically think about a single-family residence. But over the past several years, condos have experienced a reemergence of sorts. And come to think about it, there are a number of benefits associated with owning a condo.
5 Benefits of Owning a Condo
A condominium, or condo for short, is a residential housing complex that consists of dozens or hundreds of separate units that are individually owned. Typically, condos have at least one shared wall between them.
“Condo owners are responsible for what goes on within their individual units, including maintenance and repairs,” Rocket Mortgage explains. “Beyond that, they’re required to pay regular fees to a condo association. Those fees contribute to the maintenance of the shared common areas, building amenities, and the exterior of the complex.”
While they may sometimes look similar, condos vary from townhouses in a few distinct ways. First off, condos tend to have much stricter association rules and responsibilities. Secondly, they typically offer shared amenities (which most townhomes do not). Finally, a condo doesn’t usually come with any land or exterior maintenance requirements. You’re just responsible for the inside of your individual unit.
Though they certainly aren’t for everyone, here are several benefits associated with buying a condo:
Typically, buying a condo is going to require less of a financial commitment than buying a single-family detached home. Thus, if you’re looking for a property that requires less of a down payment, a condo could be it.
Historically, one of the biggest knocks on condos is that they appreciate much slower than single-family homes. However, this is really a dying notion. From May 2010 to May 2020, Zillow data reveals that the average condo market value increased by nearly 42 percent.
If you’re tired of the maintenance that comes with a single-family home, or you want to find a turnkey property that doesn’t require any handyman skills, a condo could be the perfect option. You don’t have to worry about landscaping or exterior maintenance. In fact, the only thing you’re responsible for is the drywall and in. That means if something happens outside of the drywall, it’s the HOA’s responsibility. This significantly limits your maintenance burden (which saves both time and money).
As the saying goes, the three most important real estate factors are location, location, and location. But if you’re operating on a limited budget and live in a big city or thriving suburb, trying to get a property in a decent location is tough in the market. Condos make it easier.
Not only are condos more cost-effective, but they also tend to be built in areas of town where there’s a lot going on. They’re usually located in downtown hotspots or entertainment districts. So if you’re looking for a place that allows you to be close to the action, a condo could do the trick.
Phoenix, Arizona is a really good example. You can find condos for sale in Phoenix at just a fraction of the cost of a detached home. And though you’ll have to make some sacrifices on square footage, the location more than makes up for it.
Easy to Rent
It’s a lot easier to rent a condo than a house. In fact, you’ll find that a large percentage of residents in a condominium development are renters. This makes it easy to set an accurate and predictable rent without having to worry about vacancies.
Let’s talk about amenities for a moment. In most condo communities, you’ll find a variety of luxurious features like swimming pools, fitness centers, doggy parks, rooftop terraces, tennis courts, and more. Best of all, you can use them without having to worry about taking care of them. Costs are included in your monthly HOA fees. But because they’re shared amongst dozens or hundreds of owners, they really don’t cost you much.
Finding the Perfect Condo
While there’s no objectively “perfect” condo, there might be a perfect condo for you. It all depends on your needs, priorities, and budget. Thankfully, there’s no shortage of options in most markets. Take your time, see what’s out there, and make a calculated decision.