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Wednesday, 11 December 2019
Agent Resource Center
Agent Resource Center

House vs Condo: Which Should You Buy?

Written by Posted On Monday, 25 March 2019 04:53

There are many pros and cons to buying a house or a condo. But which is right for you and which is the better buy? Here's your house vs condo guide.

The decision as to whether you should buy a house or a condo is one that will be influenced by many factors, including cost, market availability, and your individual needs. The condominium industry is in a growth spurt and has grown 3.1 percent over 2018.

Meanwhile, the housing market is experiencing the opposite effect, with only 5.25 million homes sold this year as opposed to 7.08 million homes sold in 2005 before the real estate bubble burst.

If you are trying to make a decision over one or the other, read on to find out the key differences in buying a house vs condo.

Costs of House Vs Condo

Cost is always going to be a first factor considered when buying a new home, whether you are considering a condo or not.

In the United States, the mean prices are about the same, with a median home listing price at approximately $279,500 and a mean condo price at around $281,100.

The lower a home or condo price, the lower a down payment and monthly mortgage payment.

But both types of homes will come with additional costs that you may not have to pay up front but will have to pay over time.

These costs could add to your monthly expenses. One of those costs might be condo fees, which are a standard monthly fee to be paid to your condominium association for the grace of living in a condo.

Those monthly fees can range from $50 monthly to several hundred dollars monthly, and often include the use of the space's amenities, landscaping, and access to the condominium board.

You'll need to investigate these costs and what they entail before you make your decision.

You'll also need to investigate whether that fits with your lifestyle. You may be told by the condominium board for example that you're only allowed certain holiday lights and can't plant your own garden.

For many people in this growing market, this is all preferred. Condo living such as that at Orange Line Condo offers everything a new homeowner needs, without the sweat of the extra work.

Condo Perks

You might be looking for a grand home with access to your own tennis courts and swimming pool, or maybe that is just a pipe dream. In the condo world, you can have your cake and eat it too if you find the right complex.

One of the perks to living in a condo is that it often mirrors apartment-style living, but with ownership benefits.

You may not have to take care of a single thing around your home, and be able to enjoy a pool and that dream tennis court all you want, for your monthly fees.

This could be one reason that condo sales are higher than home sales in the market right now. But there are many factors.

Downsizing to condo living has its perks, and can be the American dream in itself. Check out these 9 steps to buying your own home before you make that decision.

New Home Perks

The biggest perk to buying your own private home, with no condominium association to answer to, is just that. You only answer to yourself.

At the same time, you are building your investment in land. By definition, condos are their own space in the world and do not come with a lot of land ownership.

You can buy your own home and, in time, add your own pool and tennis court if you wish, wherever you wish.

You can garden to your heart's content, or not. You'll never get in trouble if you don't mow your lawn.

You can use what might be condo fees socked away every month, to pay for that sauna or jacuzzi in a few year's time.

The perks of buying your own home are that every decision is yours and yours alone. And, you get the benefit of land ownership on top of that.

Even in a wobbly housing market, owning your own land has always been the American dream.

The Truth About the Housing Market

The housing market is considered a "wobbly market" for single-family homes, with sales of existing homes this year at 5.1 percent lower than the year prior. New home sales are down by 12 percent.

Despite some signals that suggest the economy may be improving, some experts are saying otherwise and point to this wobbly market as a signal that the nation may be headed towards a recession.

Home prices are increasing at twice the rate of inflation and pay increases, but the condominium industry, however, is experiencing an opposite effect.

Investing in a market that is growing, such as the condominium industry, is a factor that will be on your list of considerations when deciding house vs condo.

Get Advice From Agents

A wobbly market, land ownership, condominium pools, and perks, are all things that you will factor into your house vs. condo decision. You want an investment that will pay off, and not put you underwater.

You may prefer the perk of condominium rules and maintenance, or you may not be sure what is best for you just yet. But with the condominium market growing while the wobbly housing market is not, you may already know what your decision is.

When you are thinking of buying a new home, get expert advice and check out these 5 things to consider before the purchase.

Listing Additional Info

  • State: Illinois
  • Address: 3668 University Drive
  • City: Chicago
  • Zipcode: 60606
  • SOLD: no
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