Condo Real Estate: Advantages and Disadvantages
Condo Real Estate investing has always been a very attractive and luring concept for investors and home buyers. There are multiple factors that need careful consideration before making this decision. So if you are buying for yourself or under rent to own program or as an investor, these valuable points will act as a checklist for you to make your decision a little easier.
Purchasing a new residence on your own or under a rent to own program, involves many factors to be considered and condos may be on your radar for one of the possible options. Listed herein are some main advantages and disadvantages of selecting a condo as your choice for your residence. We help our clients that are interested to go into Rent to Own program, make this decision depending on their individual needs.
ADVANTAGES OF CONDO REAL ESTATE:
- Condo Real Estate pricing: The main advantage of condo is the price of the condo. Right at the outset when you start looking at houses, the condo prices always seems to be very attractive compared to what you will pay for a single family home. Usually the location of the condo is also favourable as they may be closer to transit, schools, malls and other important facilities.
- Less maintenance in Condo: The actual maintenance that one has to do around the property compared to a single family home is limited. The condo corporation is responsible for the lawn care, snow shoveling and the also exterior maintenance of roof, windows and all the exterior of the property.
- Condo Real Estate amenities: There might be several amenities that may be available in a condo. The facilities like swimming pool, gymnasium, recreation room, games room etc. and would be of great significance if you use them on a regular basis.
- Lower utility bills with Condo real estate: Due to the fact that you own less area in a condo, the utility bills and the property taxes may be also be proportionately lower saving you some money.
DISADVANTAGES OF CONDO REAL ESTATE:
- Maintenance fees: Homeowners fee is a major expense that needs to be factored in when you think about buying a condo. This number has to be incorporated when you calculate what you can afford in addition to your mortgage amount. Paying an extra hundred bucks or so a month probably may not be much, but what if the monthly fee is five hundred dollars? Please note that this maintenance fee may also rise on an annual basis. Think about applying this fee as a your mortgage payment towards your single family home and gauge if that would be better option for you.
- Appreciation in condo real estate market: The appreciation in a condo may be lesser than a single family home. So you may have to carefully consider and talk to your real estate agent, get some comparables in that area, do some research about these factors before you make a decision.
- Limitation on upgrading: In a condo real estate market, their may be a limitation as to what you can upgrade as there is always a uniformity clause by the condo corporation that they would want to maintain throughout the condo real estate areas.
- Limited space: Generally condo will have less area than a house. There is also limitation as you may share some common areas and spaces with your neighbours.
Thus, condo real estate market may seem more attractive to couples, people who have to travel a lot for work, retired individuals that wish to downsize and people looking to have less maintenance work, etc. However, for families with kids, in need of bigger spaces & backyards, long term appreciation goals, people how want to have the flexibility to upgrade as they wish,etc. homes may be better choice. In our Rent to Own program, we discuss this extensively and lay out the different options for you so you can make your own decision. For this extensive analysis, contact us at www.gtarenttoown.com
Conclusion: Condo real estate market is an amazing market but not for all. You have to carefully weigh in all these major factors into your individual situation and take a decision what makes sense to you. This decision is very individualistic and hence there shouldn’t be a right or a wrong answer.
If you want to consider Condo Real Estate as an option for your Rent to Own, please contact us and we can discuss the details of the same with you.
Visit www.gtarenttoown.com and get started today!