Is Investing In A Condo Or A House A Better Option For You?

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Purchasing a home is one of the biggest financial decisions you’ll ever make, and choosing between a condo and a house is a big part of that decision. While both options come with their own advantages, they also have key differences that can affect your lifestyle, budget, and long-term plans. Understanding what each offers will help you make the right choice for your needs.

Understanding Condos and Houses

What is a Condo?

A condo, or a condominium, is an owned unit within a larger building or community. While you own your individual unit, shared spaces like pools, gyms, and gardens are managed collectively. The Homeowners Association (HOA) takes care of maintenance for these shared areas, as well as the exterior of the building, which can be a big perk for those who don’t want to deal with upkeep.

What is a House?

A house, on the other hand, is a standalone structure that sits on its own plot of land. You have complete ownership of the interior and exterior structures, which means you’re responsible for all maintenance and repairs. It generaly comes with more work, but it also gives you total control over your property, allowing for renovations, landscaping, and personal touches without restrictions.

Cost Considerations

Purchase Price

Generally, condos are more affordable than houses in the same area. The price difference is largely due to land ownership–when you buy a house, you’re not just paying for the structure but also the land it sits on, which drives up the cost. If budget is a major factor, a condo might be the more accessible option.

Monthly Expenses

While condos may have a lower upfront cost, monthly expenses can add up due to HOA fees. These fees go toward maintaining shared amenities and exterior upkeep. Houses, on the other hand, don’t have HOA fees, but owners are on the hook for all maintenance, repairs, and utility costs. These expenses can add up over time, especially if major repairs–like a new roof or plumbing issues–arise.

Maintenance and Responsibilities

Condos

One of the biggest perks of condo living is that the HOA handles most exterior maintenance, landscaping, and shared amenities. This means fewer worries about mowing the lawn, fixing the roof, or dealing with unexpected repairs beyond your unit. However, you’re still responsible for everything inside your condo, such as appliances, plumbing, and electrical systems.

Houses

Owning a house means full control–but also full responsibility. From mowing the lawn to fixing the water heater, everything falls on you. While this can be a lot of work, it also means you’re not reliant on an HOA and have the freedom to make changes whenever you want.

Lifestyle and Amenities

Community Living

Condos tend to offer a built-in sense of community. With shared spaces and organized activities, they’re great for those who enjoy socializing and want easy access to amenities like gyms, pools, and event spaces. This can be appealing to young professionals and retirees, as well as people looking for a more connected lifestyle.

Privacy and Space

If privacy and space are high on your priority list, a house might be the better choice. With no shared walls or communal areas, you won’t have to worry about noisy neighbors or HOA-imposed restrictions. Houses also tend to have larger yards, garages, and more storage space, making them ideal for families, pet owners, or those who simply enjoy having extra room.

Rules and Regulations

Condos

Condos are governed by an HOA, which enforces rules about everything from pet ownership to exterior modifications and rental policies. While these rules help maintain property values and community standards, they can also feel restrictive. Before buying a condo, it’s important to review the HOA’s guidelines to ensure they align with your lifestyle.

Houses

Houses come with far fewer restrictions. You can paint your home any color, adopt as many pets as you’d like, and rent out rooms without needing approval. However, local zoning laws and neighborhood covenants may still apply, so it’s worth checking what’s allowed in your area.

Investment and Resale Value

Condos

Condos can be a good investment, but their resale value is often influenced by factors outside of your control–such as HOA management, the condition of the building, and the overall desirability of the community. Some condo owners also face special assessments, where they must contribute to large-scale repairs, such as replacing a roof or updating common areas.

Houses

Houses generally appreciate more over time, particularly in desirable areas. Since you own the land, you’re also benefiting from its increasing value. While upkeep costs can be higher, houses tend to offer stronger long-term investment potential.

Pros and Cons Summary

There are advantages and disadvantages for both condos and homes.

Condos

Pros:

• Lower purchase price
• Less maintenance responsibility
• Access to shared amenities

Cons:

• HOA fees and regulations
• Less privacy
• Potential for special assessments

Houses

Pros:

• More privacy and space
• Greater control over the property
• Typically higher appreciation

Cons:

• Higher purchase price
• Full responsibility for maintenance
• No shared amenities

Making the Right Choice

Ultimately, deciding between a condo and a house comes down to your lifestyle, budget, and personal preferences. If you value convenience, community, and lower maintenance, a condo might be the perfect fit. If privacy, space, and long-term investment potential matter more to you, a house could be the better option. By weighing these factors carefully, you’ll be well-equipped to make a choice that aligns with your needs and financial goals.

Share This Article: