Renting may be a more popular choice for millennials who simply can’t afford to spring for a home, but with rental costs gradually increasing it may be time to consider a condo for your first home purchase.
Zillow research claims that rent has increased at about two times the rate of wages. At the same time the benefits of owning a home have been consistent in almost all areas of the country. Benefits like increasing home values and very low mortgage interest rates are very strong incentives for ownership.
You might doubt your ability to finance a new home. If you have good credit and a modest entry-level income, then you most likely can afford a condo for your first home. Tools such like this affordability calculator can help you the price range appropriate for your situation.
So, are you excited to commit to a new place you can call home? Here are 5 more reasons why buying a condo for your first home is a great choice:
1. You Can Save Money
How much are you paying for rent now? In the current market, you are probably paying more for your rent than springing for a mortgage and homeowner association fees, combined! A condo might be more limited in terms of space when compared to a single family home, but monthly fees and utility bills will be smaller as well. Less space means you can easily heat up or cool down your home whenever you need it.
A condo also provides the benefit of free recreational space and activities. Some Home Owner Association (HOA) fees may even cover water. All of these may result in lower overall cost as compared to a single family home..
2. You Can Save Time
Living in a condo means that you can save time instead of doing outdoor and lawn chores…unless you like trimming the hedges or mowing the grass. Or how about shoveling snow. The great thing about a condo is that the common areas are taken care of by someone else! So, think about all the time you’ll have for weekend activities if you’re not doing that other work-like stuff. Something you love, not something like work.
3. It May Be Easier To Meet People
There’s no doubt that renting a house gives you quietness and privacy when you need it, but the more affordable ones are pretty far out on the suburbs. This makes it a bit more difficult to get out when you want to visit your favorite hangouts, or eat at your local dining restaurants. Living in a house, in a suburban neighborhood also limits your day-to-day encounters with neighbors and those in the immediate vicinity.
Choosing a condo for your first home, perhaps located near a university or close to downtown increases your chances of meeting people who may share your interests. Common areas and recreational spaces provide unique opportunities to meet new people. You may not get those sort of opportunities in a house. Also, there are many opportunities to attend fun community parties and other social events.
4. A Condo Is A Solid Investment
Opting for a condo for your first home is a great investment even when you plan to live in it temporarily. Before signing the agreement, check to see if the homeowner association would allow you to rent out your place. Not all HOAs allow this, and it helps to check every detail before you commit to putting money down. If they do, then great! After a few years or when you need more space to live in, you can put it up for rent and earn some income from your investment.
5. More Flexibility Of Where You Can Live
As mentioned earlier, living near the heart of a city or town is more costly than selecting suburban homes farther out. You may not have much choice with a limited budget. Buying a condo for your first home may present a broader scope of options.
So, there are a lot of advantages by choosing a condo for your first home. I think the biggest advantage is that it is much more affordable for someone just getting into the housing market.