Is Moving Into a Condo When You Have a House Crazy?
Is Moving Into a Condo When You Have a House Crazy?
What is a condo?
People often think they know what something means but then go on without actually understanding what it actually means, so to prevent that, let's go over what a condominium is.
A condo is a type of living situation where the residents own their individual residential unit in a large building but share ownership of common areas with the other residents.
Condos are different from apartments because condominiums are bought, either through a mortgage or outright. Apartments are rented by a landlord to a tenant, there is no ownership involved for someone who is renting a space.
The difference resides purely in the way ownership works.
Many buildings feature either condominiums or apartments but rarely both because of conflicts with regard to the common spaces.
Living in an apartment does not necessarily mean dealing with a smaller space. Both apartments and condos can have access to things like swimming pools or tennis courts.
Differences between homeowners and condo owners.
First-time homebuyers often come across the option of buying a condo but back off for a variety of reasons.
Single-family homes are often treated as the holy grail, the pinnacle of homeownership while condos are seen as stepping stones but is that true for everyone?
Let's look at some fees.
For a single-family house, the owners may need to become part of a homeowner's association that dictates many things about the exterior maintenance of a home. This is not so different from the condo board but, unlike HOA rules, can even affect the interior of the condo unit. For homes, HOA fees are completely optional while condo fees are not.
Monthly condo fees are used by condo associations for building upkeep and condo residents get to vote on how these maintenance costs are distributed - to a certain extent. On the other hand, home maintenance for homeowners is something that is left completely to their whim.
Condo complexes tend to foster a supportive community and promote activities that help people socialize. A single-family home will not nudge people to socialize in any capacity. To buy a house is to buy a private space and that includes distance from your neighbours.
Many condos create a planned community where like-minded people gather, condo life is one where owners trade some privacy and share walls in the interest of creating a more communal way of living.
Homeowners enjoy more freedom when it comes to doing what they want with their property but miss out on the quirks, benefits, and cons of condo living.
Why would someone move from a house to a condo?
Condo communities may seem strange and condo ownership is not as valuable when it comes to climbing the rungs of the property ladder but there are many ways in which living in a condo can be the right thing to do.
Lessened personal responsibility for maintenance.
The freedom that comes with owning one's own home also comes with all the responsibility. If something breaks or needs to be changed, the owner needs to deal with all of the maintenance fees as well as spend the time looking for the right person to do the job. This applies to things like lawn care, a leaky roof, a creaking front door, and so on.
A condo owner, however, can rely on the condo corporation to take care of maintenance issues. Different condo buildings have different ways of resolving maintenance issues but less maintenance burden falls upon a single person.
Location is more important for the owner.
A detached house in the core of Vancouver would be absurdly expensive and, while still expensive, deciding to buy a condo is much more realistic.
Condos tend to be a great option for those able to get out of renting but who still love being in the centre of a city. Since a condo allows people to build equity as well, it makes them the perfect middle ground in real estate between renting an apartment and owning a house.
Nightlife, proximity to work, easy access to public transportation in a dense city centre can make the value of a condo appreciate a good deal for the right buyer.
Special circumstances.
World travellers that would not spend much time in a house see condos as a way to make their life easier in the long run. Since the condo association deals with the upkeep of common areas, it makes it easier to return to a well-kept living area.
A house requires the homeowner to either hire someone to take care of the house or trust a family member to do so. An apartment is simply a drain on resources while it is unoccupied. Meanwhile, paying down a mortgage for a condo will build equity even if left empty.
Things to consider before moving into a condo.
If you have a house already.
The first thing you need to think of is what you're going to do with your existing house. Maybe moving further out of the city was a mistake you're trying to correct or maybe your commute has turned to hell after some unexpected changes.
Either way, the first question is what you will need to do in order to not ruin your financial health.
If you are willing to rent out your house, you can use the monthly income to pay for the mortgage payment needed to buy the condo. This would also allow you to keep building equity in your home while you get to live the life you want in your condo.
You could also sell your house to afford a bigger down payment for a luxury condo. This all-in approach can be risky, so make sure you do the research into the condo owners and the property management company.
If you do intend to move into a condo, think of what you're going to do with your furniture. Storage facilities have a monthly cost and it's risky to think that all your furniture can fit into a condo.
If you're deciding between a condo and a house.
The truth is that many people feel drawn to the single-family home because of what it represents. It's stability and a sign of maturity to some people's eyes but does that apply to you?
There are many things that can make a condo more appealing to an individual than a house. No shovelling snow, quicker access to the city for the same price, easier access to amenities like a pool or a gym.
Think about how much space you really need and whether a condo would be more than enough for your current plans.
Is moving into a condo crazy when you already have a home?
No. It's a valid decision but one that needs to be thought through. The real estate market is complicated and opaque but just because you made the decision to live in a house before does not mean that buying a condo is a downgrade.
The best thing to do is to talk to a real estate agent to figure out the best course of action. Life is too short to pay for a mortgage you regret.
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