The decision to purchase a condominium or house may seem like an obvious one at first glance, but there are some pros and cons in each category that you should consider before investing in a condo versus a single-family house. Budget, life stage and lifestyle are all factors that might sway your ultimate decision.
Most often, condos are part of a larger residential complex of attached homes that include shared amenities like a fitness room or pool. Buying a condo means that you own a piece of a larger community that is overseen by a board of directors.
[Read: The Guide to Buying and Living in a Co-Op]
Maintenance of a Condo vs. House
The strongest reason for purchasing a condo is that all external maintenance is usually covered by the condo association, such as landscaping, pool maintenance, external painting, paving, plowing and more. This fee also covers some internal maintenance, such as gas, electric, plumbing, HVAC and other mechanical systems. This maintenance is covered by a required monthly homeowners association fee that all condo owners pay.
Many people over a certain age who choose to purchase a condo do so in order to not have the responsibility for a house and property maintenance. They also prefer the convenience of on-site staff to call for (minor) repairs inside their homes.
In addition, since condos are part of a larger complex, the built-in community condos provide are considered a true asset, especially to those who are retired. They enjoy meeting neighbors at the community gym, pool or recreation room.
Henry Cohen and his wife, both retired, recently purchased a condo in a community in Boca Raton, Florida. Cohen explains, “The three main reasons I decided to buy in a condo community rather than a private house are: First, condo living doesn’t require the maintenance of a house. The condo association takes care of the day-to-day upkeep. Second, being in a condo community offers activities that private homes do not — tennis and pickleball courts, pools, fitness centers, etc. If I owned a house, I would have to go elsewhere to pursue all of these activities. Finally, condo living makes for easy socialization — it is much easier to meet people in a condo community than in an isolated house. My wife plays cards with friends and I play on the condo’s organized tennis and pickleball teams that compete against other communities. And there’s a clubhouse where we can meet friends.”
When Size Matters
Condos are usually smaller than stand-alone homes and often do not have private outdoor spaces or large yards. Families with younger children, who may desire a large backyard, a basement playroom, a music room, or a movie room or den, will find a house to be the preferable option. Moreover, a condo usually has shared walls with neighbors, whereas a house enables you to make as much noise as you would like. Houses also allow you the freedom to make any changes you want, whenever you want. Gut renovation? No problem in a house.
Condos come with rules, which could include restrictions on pets, parking regulations, trash disposal, exterior decorations and more. They also restrict what types of changes can be made inside the home and require permission for any renovations.
Jennifer Tanner recently purchased a home in Westport, Connecticut. She and her husband opted for a single-family house because of the space and freedom it afforded them. “With a large family, we wanted space and privacy in a place we could truly make and call our own. We wanted to customize it to our own needs and not be beholden to community rules or guidelines,” Tanner says. “Our family enjoys hosting gatherings and celebrations, and we wanted to do so without restrictions that might come with a community space.”
Cost of a Condo vs. House
Condos are usually less expensive than standalone houses, though the monthly fees can be considerable in some condo complexes with extensive amenities. They are also less expensive to insure. If budget is a consideration, a condo is usually the most affordable option. However, it is important to review the condo association’s finances prior to purchase. See if there are any imminent large projects, such as a roof replacement or pending lawsuits. These costly undertakings might require an assessment (an additional fee added to your regular monthly fee) to cover additional expenses.
[Read: Why Early Spring is a Great Time to Buy a House]
Location, Location, Location
Condos are more likely to be located in urban centers near shops, restaurants and offices, whereas single-family houses in urban areas are more often located farther from the center of town. For younger people just starting out, a condo’s proximity to these options can be appealing and may enable them to avoid having to buy a car.
Again, a condo’s shared amenities could eliminate the need to join a gym and provide a built-in sense of community. That, along with a lower purchase price, can make a condo a more desirable option for younger people.
Down the Road
Resale is often a hot topic when it comes to purchasing a home. Condos can often be harder to sell than a house, particularly if there are other units for sale in the same complex. If you are considering a condo purchase, review the number of units for sale for the past several years, which will give you a sense of how easy it might be to sell in just a few years.
If you’re considering purchasing a condo as an investment property, make sure the property allows subletting. In addition, if there are several units in the complex available for subletting on a regular basis, it could be harder to find a tenant or to charge a higher rental fee. On the plus side, condos with excellent amenities in popular neighborhoods are often good investments, since there will likely be a steady flow of willing renters vying to live in the area who may not be able to afford to purchase a house or a condo of their own.
[Read: Condo, Townhouse or Co-Op: Which Is Right for You?]
To Each Their Own
To recap, condos generally cost less, require less maintenance, and offer access to shared amenities and a built-in community. These factors are considered attributes desirable to older people looking to downsize and meet others, as well as younger people with smaller budgets and eager for a community and proximity to a city’s nightlife.
A single-family house will often be more expensive than a condo but may seem more attractive to young families seeking more room inside and outside, fewer rules and more privacy. There are usually more houses than condos in top suburban school districts, too. While resale prices on a house are generally stronger than those of a condo, homeowners are responsible for all their repairs and maintenance.
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What Should You Consider When Deciding Between a Condo vs. House? originally appeared on usnews.com
