Dear Apartment Hunters: Consider Buying a Condo
Renting is a smart financial decision for many people.
Yet, all things being equal, most apartment hunters would actually be better off buying a condo.
Apartment hunters should consider that if they're paying $1,000 in rent, for instance, that is the same as owning their own $200,000 condo.
Instead of paying someone else's mortgage, consider paying your own!
The key to deciding which is best for you is to assess your finances and personal situation.
Buying a condo is a great investment, and a solid way to lay down roots, but definitely isn’t for everyone.
Here are five of the top benefits of buying a condo instead of renting yet another apartment.
Condo Ownership: Increased Stability
Buying a condo gives you a much more stable living situation than renting an apartment.
Apartment hunters should consider condos for the fact that they allow you to lay down roots and become a long-term part of the community.
Better yet, you don’t have to deal with a landlord that can kick you out or make changes to your home at a moment’s notice.
Financial stability is just as important to consider.
According to My First Condo, condo owners in all of the top 100 metro areas in the United States are more stable financially than apartment renters.
Apartment Hunters: Build Equity
Mortgages.ca lists “building equity” as the number one reason to buy a condo in favor of renting.
Go the condo route and your monthly mortgage payments actually help build a valuable asset.
Many apartment hunters even qualify for a low money down payment on their home loan.
Mortgages.ca goes on to show just how much equity you can build with a condo.
As an example, they show that homes in Toronto averaged a 10% return each year for the past 10 years.
CNN Money provides a handy home rate of return calculator that can help you figure out if buying a condo is a good investment for you.
Condo Ownership: Do Your Own Thing
Apartment hunters know the drill: most landlords have strict rules regarding home décor and improvement you have to follow.
Buying your own condo gives you the freedom to tinker with your home.
Want to paint the walls? No problem. How about switching out light fixtures? It’s no big deal when you own a condo.
Want a nautical theme? Go for it captain!
You’re also much more likely to be able to make big changes.
In-depth remodeling projects, like a bathroom restoration, are par for the course when it comes to home ownership.
Want to make changes to your bedroom?
Go for it! Might want to check with your downstairs neighbor first.
Of course, you should check your condo association rules and regulations before starting in on your next DIY project (or, better yet, before you buy a condo to begin with).
Reuters states that buying a home (or condo) is a form of forced savings.
The way this line of thinking goes is that home owners (former apartment hunters!) are forced to put away a set amount of money each month for their mortgage payment.
So, in theory, the money is going towards an investment rather than unnecessary purchases.
Though the money doesn’t go directly into your savings account, you’ll likely receive a return on your investment when you eventually sell your home.
This is true even when the costs of home ownership are accounted for.
Sense of Community
Apartment hunters know that becoming a real part of the local community is difficult when you’re forced to move on a frequent basis.
Buying a condo, on the other hand, gives you the chance to achieve a much better sense of community.
Live in the same place for years on end to build much stronger relationships with your neighbors.
Apartment Hunters: Final Thoughts
Renting an apartment isn’t without its benefits.
Yet, unlike renting, buying a condo allows you to make money on your monthly payments in a stable home where you can do what you want when you want.
All apartment hunters should at least consider buying a condo when it comes time to find a new place to call home.
Do the math, it might just work out!