Purchasing your first home is a big decision that requires a lot of planning and contemplation. It's important to choose a property that not only fits your current lifestyle, but also your plans for the future. To do this successfully, you have to think about what's really important to you, whether it's being in a specific location, having a lot of space, or saving money. Some people are a better fit for single-family homes, while others are more suited for condos.
If you're currently considering both, here's a list of pros and cons to help guide you toward the right decision:
In 2019, 681,000 single-family homes were sold in the U.S., which is over 10% more than the previous year.
Living your most natural, comfortable life can be easier in a house. Having strangers living above, below and to the side of you can get irritating, especially if they are constantly making noises or wafting fragrant smells into your space.
If you like being part of a tight-knit community, living in a house can get lonely. There will be more distance between you and your neighbors, making it harder to socialize and meet new people.
Once you own a house, you'll have more freedom with the property. You can plant a garden, own pets, knock down walls to make rooms bigger, etc. In a condo, many of these activities are not possible, or at least require permission from the building manager.
When the lawn needs to be mowed or a broken pipe needs to get fixed, you need to either do it yourself or hire help. In a condo, the building manager or maintenance team will often take care of it for you.
If you plan on starting a family, houses can be safer and more convenient for raising children. They're also typically in closer proximity to schools, parks, and other families.
The median cost of a single-family home is $275,100, which is over $25,000 more expensive than the average condo.
In the U.S., there are more than 5 million families currently residing in condos.
Condominiums are generally in gated areas and often have security guards on staff. In a house, you have to set up your own system of security.
Condos have stricter rules when it comes to owning pets. You also have to be more conscious of neighbors when having guests over or playing music late at night.
If you work in the city and want the shortest commute possible, or if you're just a natural urbanite, condo living is probably your easiest option, as there are fewer houses and more condos available in cities.
There are many factors that can bring down the value of a condo, many of which are out of your control. The quality, cosmetics, and safety of the building are dependent on the managing entity and the other residents. This makes loans for condos riskier in the eyes of banks and mortgage companies, therefore they often come with higher monthly rates and a minimum down payment of 10%.
To learn more about acquiring mortgages for houses and condos, contact The Federal Savings Bank today!