Wondering whether to buy a house or a condo? Here is all the information you need to know to make your decision about what king of home to buy for yourself.
Buying a House
Wondering what the advantages are of a house over a condo? You can have a lot more independence when you own the land under your home and aren’t having to share walls. A detached home will also boast more square footage in general than a condo that has the same number of bedrooms and bathrooms. Plus, a yard can be a big plus in the pros column, especially if you have kids or pets.
Financially, a house could be a better decision, as it’s a lot easier to get a mortgage for a detached single-family home and you’ll probably also be able to get a lower interest rate. Condos have more regulations so they can be a little harder to qualify for. With a house, you’ll probably have a bigger mortgage payment, but if you choose a neighborhood with no HOA it can make the impact negligible.
Finally, detached homes are far easier to sell than condominiums if you need to move in a few years, and have the added property value of the land they sit on. Condominiums may be selling at a premium in a robust market, but they are notoriously difficult to sell during a recession.
Buying a Condo
Still thinking a condominium could be a better fit for you? You could be right. Condos are usually less expensive than detached houses, since you are only paying for a fraction of the land value, and this can make a big difference in your mortgage payment.
However, interest rates and down payments for condos are typically higher, and if you’re trying for an FHA loan, your condo will have to meet strict requirements for you to qualify. You’ll also have HOA dues to pay every month, and these can be steep. The benefit is no maintenance on the exterior.
Another bennie in the condo pro column is that there are typically a lot of amenities either on site or close to a condominium. You could have easy access to a playground, pool, park, shopping, dining, medical facilities, or even a dog park.
Regardless of whether you’re looking at condos or houses, get preapproved for a home loan and check out all of your loan options before making your decision. A condo might make more sense for you, but then again, a detached single family home might be a better choice. It all depends on your lifestyle and future plans.
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