Purchasing a home for the first time is a big step for many adults. Owning a home entails many new responsibilities that many are not accustomed to. There are also many benefits to owning a home. There are plenty of tax benefits, homes build equity every month, and it's cheaper to own than it is to rent in the long run. In many cases, owning makes sense. One thing that many first-time homeowners have trouble with is deciding whether to look at condos for sale or at single-family homes. While both can be great choices, there are a few reasons why condos make great first homes.
Downtown Locations At More Affordable Prices
When it comes to purchasing any property, location is a very important factor. For those who enjoy being close to all the action in the heart of a big city, a condo may be a much more affordable choice. In high demand locations, single-family detached homes may be out of the price range of most first-time homeowners. In some cities, there may also be a shortage of single-family homes. In these cases, first-time home buyers should consider condos.
Future Rental Potential
Another reason to consider purchasing a condo is it's future rental potential. First-time homeowners who are considering renting out the property at a later date should check out the rents on similar properties nearby. Rents that are higher than what the mortgage would be indicate that a condo may be a good investment property. It's also important to check with the condo association in order to determine whether or not the condo can be rented out. Condo associations often limit the amount of condos that can be rented out within the community.
One thing that many first-time home buyers are not prepared for is the amount of upkeep a home requires. Things like landscaping, minor repairs, and other maintenance can take up a lot of time and cost money. This is where condos have the advantage over single-family homes. Condo association fees cover these maintenance issues and also can pay for amenities such as gyms and swimming pools. The average condo association fee runs around $200 and can cost much more in upscale communities. However, the benefits often outweigh the price.
Choosing between a condo and a single-family home can be difficult for first-time home buyers. However, there are plenty of benefits to going with a condo. Condos are often more affordable, offer great rental potential, and involve less upkeep. For more information, contact a real estate agent in your area.