Planning to move to a condo? Then, you have made the wise choice to improve your lifestyle. Condos are inexpensive compared to acquiring a suburban home. They are more accessible and convenient when it is located in urban areas and comes with amenities like gyms, playgrounds, pools, and tight security.
However, there is also the dilemma of whether to buy a condo or rent one. Both have their advantages and disadvantages, but they all boil down to your finances and current needs. As an aspiring homeowner, it is wise to consider their qualities to know your best option.
Pros of Buying a Condo
Purchasing a condo can be worth the heavy investment and extensive process. Owners can reap the benefits of the whole package. Among them include:
- Affordable Payment. Compared to suburban or single-unit houses, condos tend to be cheaper and friendlier for first-time homeowners. However, there are more units in urban areas.
- Appliance Investment. Your purchase should include appliances and furniture for your unit. Most condos are furnished with necessary items in the kitchen, the bedrooms, and the living room.
- Equity Building. Owning a condo is a lucrative chance for wealth growth. Through home equity, you can take advantage of investing in real estate and market credits.
- Flexible Space. Smaller spaces can be challenging yet liberating for homeowners who want complete control and freedom of their place. Thus, condos afford owners less home improvement.
- Fresh Amenities. The units are just a fraction of the entire package. Even for non-luxurious condos, there can be good amenities like pools, playgrounds, gyms, and sports centers.
Cons of Buying a Condo
Not every purchase of a condo is easy, as location, affordability, and space are taken into strict consideration.
- Financial Capability. Buying takes commitment, from the first down payment to monthly fees. Unless you have a loan, you will need a steady financial capacity to afford your unit.
- Homeowners Fees. Speaking of affordability, your homeowners’ association fee should be taken into account, alongside taxes. HOA fees cover access to amenities, maintenance, and other services.
- Limited If you have a car, available parking spaces can be an issue. But if your complex does have a parking space, fees would be an issue.
- Unexpected Upgrades. Having a unit means considering the necessary upgrades and maintenance expenses. This can be ostensible for starter condos that usually require logistical improvement.
- Privacy Issues. Homeowners may have to also deal with their neighbors within their complex. As units share walls, noise can be an issue in achieving quiet living.
Pros of Renting a Condo
However, if buying a condo is not the top priority, then renting is a modest, productive start.
- Furnished Units. Renters do not have to provide or purchase their own appliances or furniture since the landlord can also rent out these utilities for them. Only extra care is needed.
- Lower Costs. Since rent is sometimes the only payment necessary, tenants need not handle HOA fees, taxes, insurance, and other fees. Their landlords can manage them all.
- Regular Maintenance. As such, landlords also provide routine repairs, upgrades, and orderliness to keep their units intact. Tenants can have any broken pipes or lights fixed.
- Rental Agreements. Renting a condo can be negotiable with the landlords in terms of rental periods and other details. Furthermore, it allows for a more feasible process whenever tenants want to move out.
- Time Flexibility. Millennials tend to be the most frequent condo occupants because some would rather not invest in a home and need just a place to stay.
Cons of Renting a Condo
One of the common challenges in renting is that rental prices tend to climb. Here are other disadvantages:
- Irresponsive Landlords. While not all landlords are passive, some are irresponsive to tenant concerns like repairs or maintenance. It can be a pain for the paying tenants.
- Less Affordability. As mentioned, rental prices can climb gradually. Some tenants may not be able to afford it soon enough as prices can beyond their paygrade.
- Rental Agreements. Rental agreements can also be a disadvantage if changes on such put tenants in disarray. Lease renewals usually cause these changes.
- Restricted Access. For renters, homeowners’ rules can include not having access to unit amenities like pools, gyms, and other areas, and breaking those rules may warrant penalties or warnings.
- Supplementary Fees. However, if tenants want access to such amenities, landlords might charge them with HOA, service, and other fees that may burn a hole in the tenants’ pockets.
Final Reminders on Buying or Renting Condos
The decision to rent or buy a condo will rely on your capacity to afford it. However, all will need decisive planning. Evaluate your needs first. Then, map out your future objectives. More importantly, back your finances with steady loans. Hard work that pays off is essential for an easy condo living.
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Collaboration with Ayala Land International.