Condominium developments are widespread as it is considered as an alternative for townhouses because of these multiple reasons.
First, it is cheaper compared to townhouses which makes it more affordable for an investment.
Second, just like townhouses, they can also provide convenience and efficiency when it comes to a high standard of living.
Third, the exteriors of a condo are taken care of and maintained by the HOA, which means you really don’t have to exert so much effort beautifying the external parts of your unit.
Fourth, it is mostly situated in an accessible location wherein amenities and downtown areas are within reach. Apart from that, you can easily access public transportation systems as well.
Fifth, the amenities. Condominiums will most likely have tons of basic and recreational amenities such as a pool, gym, trails, park areas, and many more.
Lastly, the connection within the community is much closer. Since condos are composed of hundreds of units where you can just easily make new friends with your neighbors as you are just living steps away.
These are the main factors why condominium properties get people’s interest in investing for one. What makes it better is that you are given two options, you can either rent a condo, if you’re just stopping by in a city for months to explore and wander, or you can buy one if you’re looking for a new place to live for good.
Now, in this article, all the pros and cons of buying and renting a condo will be laid down in which you can use for comparisons to help you decide what option suits you.
PROS OF BUYING A CONDO
- Buying a condo helps you increase your wealth through building equity.
- Owning a condo basically means having an asset where the value grows annually.
- Being a condo owner authorizes you to do some customization and improvements in your unit.
- You have the access to take advantage of the tax breaks.
- You will have lifetime access to the condo’s amenities.
CONS OF BUYING A CONDO
- You will need to prepare a certain amount based on the required downpayment percentage.
- There will be monthly mortgage payments.
- There will be times that the HOA will implement unpredictable housing expenses, which is expected to increase yearly as well.
- If you decide to sell it in the future, you will have to pay a commission fee of 5 up to 7 percent of the selling value.
PROS OF RENTING A CONDO
- This will be the best option for those who do not plan to stay in a specific city for long.
- It will be easier for you to move if you want to switch cities.
- It provides more flexibility
- It is much easier to be approved when you opt to rent rather than to purchase because the minimum requirement will be asked.
- These agreements are less risky
- Renting will only require you a lesser amount for security deposits
CONS OF RENTING A CONDO
- There’s no return on investment
- You will not be entitled to any share in the property’s equity
- You are not allowed to modify or upgrade anything in the unit, aside from adding your own appliances or furniture.
- No homeownership
There’s a lot of differences in all aspects when it comes to buying or renting a condo. However, both are very convenient and efficient depending on how you will use them, either as a lifetime investment or just a temporary space.