Tuesday, February 24, 2015

House or Condo? Which One Should You Choose?

First published on PropertyAsia.ph 

If you’re a first-time homebuyer, you basically have two options available for a home: a house or a condo. Bear in mind that each one has its own advantages and disadvantages. So it all boils down to the homebuyer’s preferences.

However, before you make any buying decision, consider these important factors:

Lifestyle 

If you’re single, you may want to live in a bachelor’s pad, where you can throw a party anytime. In addition, most bachelors prefer living in a condo because it gives privacy and freedom.

If you’re living a more modern lifestyle, like most bachelors, a condo is also perfect for you because most condos are located in urban areas, where many amenities and luxuries are available.

But if you’re married or planning to start a family, a house is more ideal. Even more so if you’re ready to have kids. In this case, you may want to allocate a larger space, where your kids can play around without bumping into any furniture. Most residential communities are also located in a peaceful environment, which is perfect when raising children.

Furthermore, a house is more ideal for growing families because you can easily do some home upgrades.

Cost and Other Expenses 

It’s not easy to compare the cost of owning a house to owning a condo. The reason is that there are many factors that affect the cost of living in a condo or a house. For example, if the condo building is located in an area where property taxes are high, the property can be far more expensive. The size of the property also affects the price; a larger property is definitely going to be more expensive.

Apart from the cost of the property, you also have to consider the other expenses that come with owning a home. If you’re buying a condo, there are likely more expenses that you need to pay. Though both houses and condos have annual property taxes, homeowners insurance, and mortgage insurance, a house does not charge condo fees. However, the monthly utility bills for a house would be much higher than those for a condo because the former occupies a much larger space.

Appreciation Potential 

Whether you’re thinking of a short-term or long-term investment, you also have to consider the appreciation value when buying your first home. But which one has the higher appreciation value? A house or a condo?

Most people think that condos have higher appreciation potential because they’re mostly located in urban areas. However, if you think of the annual expenses when living in a condo, it’s less likely to gain much from your home’s appreciation value. Although mostly located in rural areas, a house is likely to appreciate more than a condo. Instead of paying condo fees, you can save your money for some house improvements that will further help increase the value of your home.

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