The 4 Pros and 4 Cons of Buying a Condo Instead of a House
Written by
Nicole Spector
Edited by
Amber Barkley
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When you’re in a position to buy a home — possibly after many years of saving up a down payment and preparing to take on a mortgage — you have a few options. For example, you can buy a single-family home, or you can buy a condo. Which should you choose?
There are good reasons to buy a condo instead of a house, but it isn’t all sunshine and rainbows. Ultimately, there are both pros and cons associated with buying a condo.
GOBankingRates spoke with real estate professionals to assemble a list. Next, find out if buying a starter home is still an option.
Pro: Strong Community Vibes
One pro that shouldn’t be glossed over is the strong community vibes that condos offer. Greg Clement, founder and CEO of real estate investing software company Realeflow, said this is because, in a condo, you have shared amenities and the opportunity to connect at events.
“It’s a built-in social network,” Clement said.
Con: Shared Space — Similar to an Apartment
Though you may appreciate the spirit of a tight-knit community, you may not appreciate that you’re in something of a shared living space.
“A condo is sort of in the middle between an apartment and a house,” said Omer Reiner, a licensed Realtor, entrepreneur and president of FL Cash Home Buyers, LLC, a real estate investment company based in Fort Lauderdale, Florida. “You are likely sharing a wall and some common outdoor areas, as you would in an apartment complex.”
Pro: Lower Prices
A major pro, if not the biggest one of all, is that condos are typically cheaper than single-family homes.
“You are likely to find a lower price tag on a condo than you might for a single-family home in the same area,” Reiner said. “You might even save some cash on the insurance bill, as well.”
Con: Fees
When you buy a condo, you’re signing up to pay fees on a regular basis. These fees vary.
“Condos have many different kinds of fees, and most condos are a part of an HOA, so you will owe HOA fees,” said Seamus Nally, CEO of TurboTenant. “I think it’s super important to consider the HOA before purchasing a condo.”
Pro: Those Fees Include Some Maintenance
Condo fees are a pain, but they do go a long way in terms of covering maintenance costs, including those associated with landscaping and trash collection.
“Though you will be paying a fee, you won’t have to worry about trimming trees or sweeping out gutters and similar tasks, as you would if you were buying a house,” Reiner said. “That can be a big draw for busy singles or families or older adults who simply cannot or don’t want to tackle those types of maintenance jobs.”
Con: Restrictions on What You Can Do With Your Space
Not only do condos often come with fees, they also come with restrictions around what you can do with your space.
“Decisions about your property are not entirely yours,” Clement said. “Want to paint your door a funky color? Better get approval.”
Pro: A Lively Location
“Typically, you will find condo locations to be highly desirable, and when buying a home, location is always key,” said James Robbins, a real estate advisor at Engel & Völkers Atlanta, which provides real estate services to the Atlanta market.
“Lots of condo buyers want to be in the hot new neighborhoods, especially if you’re new to a city,” Robbins said. “Condominiums are a really great way to enjoy a walkable lifestyle, shopping in the neighborhood, nightlife and local attractions.”
Con: Possible Pet Restrictions
Not all condos impose restrictions on pets, but many do.
“Some condo associations prohibit pets entirely,” Reiner said.
If you have pets or plan to, make sure you don’t purchase a condo without knowing all the rules here. In fact, look into all the rules associated with owning a condo. These alone could outweigh all the pros.
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