Condos Offer Many Benefits
Buying a home is a tedious and often overwhelming process, especially for those who have not previously been involved in property purchasing. Because of the lack of upkeep required to maintain the property, condominiums are often a natural choice for first time home buyers and established workers living in large cities.
Condos are often just as large as single family homes, and can have just as many or more indoor amenities such as fireplaces, updated kitchens and bathrooms, large windows and high ceilings. Condo owners do not have to worry about upkeep on yards or the outside of their property, as the condo association typically will take care of landscaping and building maintenance. In this way, condos are very similar to apartments, but with the benefit of ownership.
Condos Aide in Building Home Equity
The most beneficial part of owning a condominium is the chance to build home equity. First time home buyers often struggle to provide a down payment large enough to make monthly payments on their home affordable. By owning a condo first, buyers literally have the chance to make payments to themselves each month. Everything that they do not pay in interest will go directly into their pocket upon selling the home, with the assumption the home sells at an equal or greater price than what they paid for it. This amount can automatically be applied to a down payment on their next home, causing a snowball effect that allows buyers to purchase more expensive homes as they gain equity.
How to Finance a Condo
In any home purchase, it is important to consider how the home will be financed. Because online mortgage calculators can often be misleading, buyers often expect to purcahse a home that is much more expensive than what they can actually afford. Buyers must consider not only the purchase price, but what interest rates are available, how much homeowner's insurance will cost, what taxes will be involved, and the expense of intial closing costs. Condo owners must also consider how much Homeowner's Association fees will be each month, as this can make a significant difference in the amount of the monthly payment.
When shopping for a condo, it is extremely important to find a trusted agent who will disclose all pertinent information about the home purchase, and to check with multiple lenders to find the best real estate funding.