Should you Buy a Condo or a House?

Are you searching for tips to help you make a buying decision between a condo and a house? You are not alone; several buyers are also faced with a similar dilemma as the question does not have a one-size-fits-all answer.

The difference between a condo and a house goes beyond having a backyard; however, the decision depends on your finances and lifestyle.

Consider the key differences between these two types of property to choose the right one for you.

1. Resale Value

If you are interested in a good long-term investment buying a house is more appropriate. Houses, unarguably, remain the most in demand property in the real estate market. Houses are short in supply that is why their price or value appreciation is one of the highest.

2. Your Budget

If you can afford the price of a house and you can get pre-approved for the right mortgage, then you should go for it. Take into consideration all of your financial responsibilities before making a conclusion that you can afford the lifestyle of owning a house.

In some cases, a condo might be a relatively affordable option.

3. Carrying Costs

Buying a house is not the end, there are several ongoing expenses to budget for, such as water, heating, and hydro. There are other factors to consider with house ownership like roof repair/replacement, furnace, water heater, air conditioner and windows, just to name a few.

On the other hand, buying a condo is a lot easier-you only need to budget for your condo fees, which remain relatively the same every month with ample notice for any increment.

Meanwhile, you need to find out what each property’s condo fees comprises. Some condo fees include all utilities and cable while other fees may require you to pay for hydro in addition to the fees.

4. Cost of Insurance Coverage

Whether you buy a house or a condo, most lenders will not approve your mortgage until you have insurance coverage.  Insurance costs differ for each type of property you purchase.

Home insurance is higher for houses than for condos because condo fees have likely covered flooding and fire damages. As a result, insurance premiums for condos are a lot cheaper.

5. Your Lifestyle

You need to compare your lifestyle with the two types of property to determine which of them is compatible. If you have children, buying a house with a yard seems a good deal but you have to be ready for the responsibilities. And if you desire a low maintenance solution, a condo offers you comfort and affordability.