The Differences Between Buying a Condo Versus a House
Purchasing a condo has it’s pro but so does a house, here we will be discussing the difference between owning a condo vs a house
Condo vs. House: “A condominium is a home, typically part of a larger building that comes with shared common areas, such as yards and garages that are maintained by hired help, rather than individual owners” and it makes condo ownership a breeze, states the Local Records Office. The condominiums are maintenance-free, and come to a pretty price, as you do have to pay HOA fees. They also recently starting becoming more restrictive in letting owners rent out their homes. Also, when you purchase a home, you are also purchasing the land, whereas a condo unit is just the living space.
The advantages of buying a condo
More buyers are purchasing condos because of the relative closeness of a walkable community with a walking distance to restaurants and shops. Some have amenities such as sport fitness centers, pools that normally would be costly inside a house. Condos are becoming a more attractive choice, because of their convenience and low-maintenance better fits into people’s busier lifestyles.
Condos cost less, and when you shop wisely, you can find low housing costs despite having to pay dues. You also get a better location for the price.
The disadvantages of buying a condo
The association fees are an extra monthly payment outside of your mortgage monthly bill and pay the maintenance fees and amenities. These fees can be expensive and increase. When you are interested in making some big changes to the property, it has to be agreed upon by most of the owners living there. There are also a lot of rules and restrictions that some buyers do not like that are associated with condos. When there are large upgrades, you could face a special assessment charge soon after moving in.
It’s a smaller space so you need to be ready to organize more efficiently. You don’t get a yard, which to some may be a huge disadvantage.
The advantages of buying a home
One of the big advantages of buying a home is you have complete control over the property to remodel or make changes without having consent from others. Another advantage is it allows for having the extra space, whether it is indoor or outdoor, and is beneficial for accommodating for family gatherings, children, and pets. Houses also offer more privacy, because neighbors are further apart and it features more storage space, such as closets, attics, and basements.
The disadvantages of buying a home
You need to consider the cost of tools, and maintenance when purchasing a home and although improvements increase your home’s value; they also require extra time and money. Utility bills are also generally higher because a house does generally have a larger space than condos.
Steps towards renting out a condo
Renting a condo is a little different, but make sure you view the rules set by the condo association that they allow renting as an option. There also may be limitations –including the minimum or maximum times- and whether or not pets are allowed. Look into whether renting has been an issue in the past, and
“review board meeting minutes to see if any new policies are being discussed that might impact your plans,” says the Local Records Office.
Another thing to keep in mind is the ratio of rented condos to non-rented condos, and note that some associations only allow renting after the owner has lived there a minimum, usually 2 years.
Some form of approval to renting your condo is usually required. The prospective renter will need to complete an application and provide financial information and references. Sometimes there is an additional fee and some condos even require a tenant interview by a committee of the condo board or just need to be approved by the management company.
Make sure you clear this process by contacting a board member directly and be sure by checking the bylaws. The result of getting it wrong can land you a violation and result in a fine.
You are also responsible for making sure your tenant understands and abides by the condo’s rules. Including a clause in the lease agreement about adhering to those rules is recommended by the Local Records Office.