Renting may be a more popular choice for millennials who simply can’t afford to spring for a home, but with rental costs gradually increasing is it still the better choice than opting for homeownership?
Zillow research claims that rent has significantly grown at about two times the speed of wages. At the same time, home buying benefits like home values that retain their pre-recession prices and very low mortgage interest rates have been consistent in almost all areas.
Are you still doubting your financial capability to buy a house of your own? If you have a good credit and a modest entry-level income, then you might be able to afford a condo. Tools such as an affordability calculator can help you understand which condo price ranges are suited for you and your salary.
So, are you excited to commit to a new place you can call home? Here are 5 more reasons why investing in a condo is a great choice for your first home:
1. You Can Save Money
How much are you paying for rent now? In the current market, you are probably paying more for your rent than springing for a mortgage and homeowner association fees, combined! A condo might be more limited in terms of space when comparing to a single family house, but monthly fees and utility bills will be smaller as well. Less space means you can easily heat up or cool down your home whenever you need it.
A condo also provides the benefit of free recreational space and activities, some external repairs, and water might even be included in the HOA (homeowner association fees). This factor drives down the costs of upkeep and maintenance even lower (even when factoring in homeowner fees with mortgage) as compared to renting a house.
2. You Can Save Time
Living in a condo means that you can save time instead of doing outdoor and lawn chores such as trimming the hedges or mowing the grass. You won’t even need to start shoveling snow in order to get to work or the local mall! Homeowner association fees should cover all of that. Plus, dwelling in a community property saves you precious weekend time to do something you love instead of participating in a weekend maintenance project.
3. You Can Make New Friends
There’s no doubt that renting a house gives you quietness and privacy when you need it, but the more affordable ones are pretty far out on the suburbs. This makes it a bit more difficult to get out when you want to visit your favorite hangouts, or eat at your local dining restaurants. Living in a house, in a suburban neighborhood also limits your day-to-day encounters with neighbors and those in the immediate vicinity.
A condo located in a nearby university or an urban spot guarantees that your neighbors and fellow condo owners are young families, grad students and young professionals. The chances to meet new friends increase because there are common recreational spaces and areas to mingle in. Just take your dog out for a walk, or cycle around and you might just meet a new friend! If your condo management team is active, they would also probably get in the community spirit and host meet-and-greet events to get to know your condo neighbors better.
4. A Condo Is A Solid Investment
Opting for a condo is a great investment even when you plan to live in it temporarily. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. If they do, then great! After a few years or when you need more space to live in, you can put it up for renting and earn a little income along the way.
5. You Can Choose Where To Live
As mentioned earlier, living near the heart of a bustling urban city is more costly than selecting suburban houses farther out. You may not have much of a choice with a limited budget. You will have a broader scope of options with the same budget when looking for condos. That condo in college neighborhoods or downtown areas are still probably lower than a single-family home in the same location!