Should You Move to House or Condo? Pros and Cons of Each

If you want to purchase property, generally, you have two primary options - a house or a condo/townhome. Typically, most people want a home, but there are some advantages to buying a condominium. So, let's look at the advantages and disadvantages of each purchase so you can see which one is right for you.

Buying a House

In 2021, the housing market was hotter than ever, with demand for single-family homes skyrocketing. Many first-time buyers could not get anything, and competition was fierce for choice properties. The market cooled off thanks to rising interest rates, but demand remains high. Here are some pros and cons of buying a house.

• Pro: Build Equity - Property ownership is a reliable way to build wealth because the home should increase in value over time. So, when you're ready to sell, you should be able to make a net profit. You can also use the equity in your home to pay for repairs and renovations as necessary.
• Con: Higher Costs - A single-family home will almost always be more expensive than a condominium. So, if you don't qualify for a large mortgage loan, you may struggle to find something within your price range.
• Pro: More Space and Freedom - Even if your house has an HOA membership, you should be free to do what you want with the property. Also, most homes come with front and back yards, so you have more room to move around.

Buying a Condo

Demand for condos had been falling for several years, but since the housing market boom, more buyers are looking into buying a condo instead. Here are some benefits (and disadvantages) that come with the territory.

• Pro: Lower Costs - Because you're buying a unit within a larger building, generally, you don't have to pay as much as you would with a house. Depending on the market, you could spend tens of thousands less overall, meaning it's easier to qualify for a mortgage loan.
• Con: Less Freedom - Condo buildings are often similar to apartment buildings; only residents own their units, so they have more flexibility about what they do inside. That said, you usually have to get approval for renovations, and you must consider your neighbors.
• Pro: More Amenities - Buying a condo means being part of a homeowners association (HOA). While you have to pay dues, the money can sometimes go toward pretty nice perks. For example, condo buildings may have a pool, lounges, and other amenities you wouldn't be able to get with a single-family home.

Which is Better for You?

In many cases, the price tag for a property is the defining factor in determining where to live. However, condos can offer some unique advantages, particularly for first-time buyers. While you don't build as much equity within your property, you can still parlay your condo into a single-family home later.

Get Help Moving Into Your New Place!

Whether you decide to buy a condo or a house, now you need to worry about moving into it. We can assist with everything from packing to transporting your belongings, so contact us when you're ready to take the leap!