subject: Buying Condos Vs. Renting [print this page] When people are looking to make their next move, sometimes the question of investing in real estate is compared to renting another house, apartment, or condo. Depending on your financial situation, either of these may be open to you. When you consider the cost of investment, condos are actually an easier transition to make when you're going from renting to buying.
Renting is a safer bet when you have limited funds or are living from paycheck to paycheck. You are charged a monthly rate that covers a great deal of what is necessary to maintain the property. If your landlord owns the property, your rent could be pure profit or it could cover a portion of the mortgage. If something goes wrong on the property, it is the owner's responsibility to fix it. You're not responsible for major necessary home renovations and repairs. Aside from wear and tear you may add personally to the home, you will never pay more than your security deposit to improve or maintain the interior or exterior of the property.
When you own a condo, things are slightly different. You're not quite as solely responsible for the property because you own the space as part of a community of people. You do, however, have more personal responsibility for the maintenance of your property than you would as a renter. Generally a community does have shared expenses that help pay for a maintenance caretaker on the property that can help you with odd jobs with plumbing, lawn care, or minor home repairs. Other times you do have to take care of things in your own. If you need something fixed, replaced, or newly installed, you have to call in a contractor.
The other benefits to owning a condo are that you can add much more to it than a rental property. It may be the first time you are able to paint your walls the colors you desire. You are able to replace appliances to suit your needs. You can really invest in a space for the first time. You can also be flexible with its use. Normally a landlord would not let you sublet your apartment, but when you own your property you can do what you want. The difference between condos and houses is that you may have to get approval with your community.
If you're unsure whether you can handle buying condos property or continue renting, start working with real estate agent who can help you understand what the upfront costs and long terms costs are. You might have to put $20,000 down for the purchase but your mortgage rate may be the same or less as if you were renting the same property. It's all going to depend on how stable your income is, your intention to stay in an area for a considerable amount of time, and whether you think you're ready to take the next step in owning and maintaining your own property.
by: Andrew Stratton
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