Condo or House? Exploring the Differences in Ownership
Condo purchases have been on the rise over the past two decades, offering an appealing alternative to traditional home ownership for many types of people. Though condos have conventionally been the choice of singles, retirees and couples without children, today there are a growing number of families in the mix – making this an important category of properties in many real estate markets across the U.S.
Condo ownership offers a number of unique benefits. But it’s not for everyone. While condos may provide access to certain amenities as well as limit the time spent on upkeep, there can be certain restrictions – few of which are experienced by owners of single family homes. So it’s important for any prospective buyer to learn the primary differences between condo and traditional home ownership. Considering the facts in relation to your goals will help you determine the right choice for your lifestyle today and in the future.
- Location and Lifestyle: Two of the most important factors in determining what type of home is right for your family are location and lifestyle. If your family is looking to move to an urban environment where single family homes are scarce, a condo could be a good choice. In such markets, condos are always in high demand and appreciation often matches the best single family homes. Additionally, if you live a busy life and can do without a large yard, a condo might be ideal – given that it eliminates the need for yardwork and outdoor chores. While most families with young children prefer single family homes for the added space, condos often provide amenities such as swimming pools, tennis courts and large open areas to help families relax and play.
- Terms of Ownership: Nearly all of the differences between houses and condos stem from the types of ownership each entails. In the simplest terms, owners of single family homes are entitled to exclusive ownership, while most condo owners are subject to certain forms of shared ownership. Exclusive ownership allows homeowners to alter their home and surrounding property in nearly any way, with the exception of local building codes that may prevent certain home additions and other large-scale renovations. Condo owners are not always allowed to make such radical changes to their property.
- The Condo Board or Association: When purchasing a condo, owners are subject to the rules and regulations of the condo association or board. Typically composed of fellow residents, this governing body collects dues from condo owners to conduct ongoing maintenance of shared areas and perform any unexpected repairs. As part of the agreement with the condo board, new owners will be informed of what types of changes can be made to the interior and exterior of their property.
- Covenants, Conditions and Restrictions: If you are thinking about purchasing a condo, it is important to read the Covenants, Conditions and Restrictions (CC&Rs) before making a commitment. These documents include all the rules condo owners must follow and can vary widely between complexes. If you have indoor pets or other specific needs, make sure these are addressed in the CC&Rs to prevent any unwanted surprises. If you don't understand any part of the CC&Rs when purchasing a condo, go to the director of the condo association for clarification.
To make the most informed decision between a condo and a house, all prospective homebuyers should reflect on their own lifestyles and priorities and how they relate to the different types of property ownership. While there may be many differences between owning a house and a condo, the goal is always the same – finding the right fit for your family.
The staff at
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