Should You Buy A House Or Condo

ADDED ON February 25, 2015 0 COMMENTS

House or Condo? House Or Condo

 One of the big decisions facing homebuyers is whether to purchase a house or condo. To be  clear about what a condo is; a condominium is a type of housing where a buyer owns a specific  part of shared property. Typically, ownership is of the individual unit and a percentage interest  of the community space. So, a patio home that is freestanding but that shares community  property, a clubhouse, etc. can be deemed a condominium if the land under the home belongs  to the association, while a freestanding home that may share an association pool or community  park is not.

 Risk

While some buyers think that owning a condominium is less risky than owning a house. This is not necessarily the case. During the economic downturn, condo owners were hit just as hard as single homeowners. The risk is based on your mortgage and your ability to make your payments, so in either case, if you lose your job your home is equally at risk.

Investment

Sometimes it makes more sense to buy a condo if you plan to live in it for a while and then turn it into a rental. Be careful to make sure the association you purchase in allows you to rent the property later. FHA requires that a certain percentage of condominium units be owner-occupied, so make sure that your purchase fits into that criteria.

Maintenance

There are clear differences regarding maintenance responsibility between a house or condo. Single-family homes typically require the owner to handle all of the maintenance from the yard work to replacing the roof or leaking water heater. Not only can this costly, if you are unable to do the work yourself, you have to pay the going rate for contractors. In many condominium complexes, the exterior work—and even some interior repairs—are done by the association. Funds for pay for the work come from your regular monthly association dues. Landscaping, masonry, exterior paint and other costly maintenance items are scheduled on a routine basis so you can come and go, have weekends free of yard work and even be away for an extended period without worrying about things getting done.

Dues

One potential challenge with condominium ownership is that the association dues can continue to rise as inflation, cost of repairs, et cetera, rise. Sometimes an association will require a special assessment to cover damage from storms (usually insured, but the deductibles need to be covered), or for upgrades that were not planned into the long-term maintenance.

Which should you buy?

Whether you want a house or condo, patio home or unit in a high-rise, there are risks and rewards to both. As Your Huntsville Real Estate Resource I can help you determine which is the best option for your situation, so give me a call and I’ll show you what is available to you.

If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don’t you let me Google that for you or you could just call, email or visit me Your Huntsville Real Estate Resource. I also know outstanding agents in all states and Canada should you need help relocating to a new area.

Nick T Pappas

Serving: Anslee FarmsBell Tower, Bishop Farms, Bradford Farms, BridgefieldCanebrakeChase Shadow, Cherokee Ridge, Clifts Cove, Edgewater, Emerald Forest Condo, Foxfield, Greystone Estates, Hampton Cove, Harvest, Highland Lakes, Jones Valley Estates, Kelly Plantation, Knox Creek, Lake ForestLedges of Huntsville Mountain, Mandolin, Maxwell Place, MidTowne on the Park, Newby Plantation, Olde Cobblestone, Overland Trace, Pebble Brook, Rainbow Landing, Rock Creek, Shadow Brook, Spencer Green, Stavemill Estates, The Bridges on the River, The Villas at Madison, Towne Lakes, Villas at Jones Valley, Walden Preserve, West Highlands, Whitehall, Village of Providence and more.

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