Single-family home prices are dramatically outpacing inflation. The rising prices make some people feel edged out of homeownership.
Rising prices have forced many people to stick with rent payments. While this reality is bleak, there’s a way out: condos.
What is a condo? They’ve appreciated too, but not as dramatically as homes. Attractive prices aren’t the only reason more people decide to buy a condo.
We’ll share everything you need to know about condos and if you should buy one.
What Is a Condo?
A condo is a cheaper version of a home without all of the maintenance headaches. Many people who want to escape rent but can’t afford single-family homes end up buying condos.
Condo units are next to each other. You may have neighbors living above you, similar to an apartment setup. Each condo complex has a different layout.
Condos present several advantages over apartments. Instead of paying rent, you pay a mortgage. Condos are investments, and you can sell in the future.
You can find condos online through a site like DenverLoftsandCondosforsale.com. Reviewing condos and price points will give you a gauge of how much you can afford.
Some people buy a condo as a bridge to homeownership. After paying down enough of the mortgage and increasing income, some condo owners swap their place for a home.
Condos also typically have more space and amenities than apartments. You’ll also get city amenities based on your location.
Condos are often closer to cities than single-family homes. Condos offer your best shot at equity and city life. You can also find condos outside of the city.
Between a condo vs. apartment, a condo is the clear winner: more space, equity, and amenities.
Watch Out for Fees
Condos provide many advantages over houses. Lower prices mean lower down payments and easier access to a loan. You’ll never have to mow the lawn or do pool maintenance.
Yes, your condo can have a pool. Installing a pool gets expensive in a hurry between workers, maintenance, water, and other resources. Condo buyers can skip those steps and never worry about maintenance.
Unfortunately, these perks come at a cost. The condo community will all chip in for HOA fees.
Some condos offer low price points but excessive fees. You’ll have to pay these fees on top of your mortgage.
These extra expenses can make condo ownership a financial burden. Ask a condo seller about the fees and do your own research before buying a condo.
Reasonable fees make condo ownership easier. It’s similar to a home but far more affordable.
Getting Started with a Condo
You now know what is a condo. We’ve discussed the pros and cons of buying a condo. These homes serve as a middle ground between apartments and homes.
Want to learn more about real estate investing? Continue reading this blog for additional insights and resources.