Shopping for a house entails a number of decisions—areas, kind of house, kind of mortgage, and extra. With regards to the kind of house, do not forget that a single-family house isn’t the one choice. Condos might be nice locations to reside, to not point out stable funding properties. That’s as a result of the condominium market continues to develop and will enhance your choices.
Past that, we’ve received 5 extra advantages of buying a condominium. So take a learn, then determine whether or not it would make extra sense to purchase a condominium!
1. Decrease Value/Down Fee
Condos is usually a extra inexpensive choice for first-time homebuyers. In lots of areas, a condominium is priced a bit decrease than a single-family house and may supply simply as a lot sq. footage.
A decrease buy value means a smaller mortgage and smaller month-to-month funds, nevertheless it additionally means a decrease down fee. And you realize what meaning: You don’t must provide you with as a lot money to maneuver ahead!
2. HOA Handles Landscaping/Enhancements
Condos nearly at all times have a owners affiliation (HOA) that governs the event or advanced. There are HOA guidelines for every condominium neighborhood that may vary from quite simple to very elaborate, so it’s a good suggestion to assessment them earlier than making a suggestion.
However by charging a month-to-month HOA payment, the affiliation sometimes handles all the skin widespread areas of the condominium advanced or neighborhood, in addition to giant gadgets just like the roof and exterior of the property.
This is usually a big aid in case you’re a first-time purchaser settling into homeownership. Let the HOA charges work their magic! If relaxation and leisure are in your weekend agenda, then the HOA charges that include a condominium could also be effectively price it.
3. Customization Inside
Regardless of being located like flats, you personal a condominium. Which means you don’t want anyone’s permission to color your inside partitions, do mild house enhancements, or hold no matter you want.
As a first-time house owner, this may be so thrilling!
You will have to verify along with your HOA’s guidelines earlier than making bigger renovations or doing something to the outside of your unit. Your CC&Rs (covenants, situations, and restrictions) will inform you what’s and isn’t allowed.
Condominium possession provides you a lot extra management than you had as a renter.
4. Neighborhood Facilities
There’s a number of variation in condominium communities, however many supply widespread areas and facilities much like these you’d discover at an condo advanced.
These facilities may embody a swimming pool, clubhouse, health room, strolling trails, or group leisure actions. You’d be hard-pressed to discover a single-family house that had all these extras (although they do exist … for the next price ticket), however condos typically supply facilities that you just pay for by way of your HOA fee.
Some first-time patrons who know they wish to maintain the condominium long-term will even flip these belongings into their trip properties down the road as a result of they benefit from the widespread areas, facilities, and all of the perks that include the unit.
5. Funding Property Potentialities
Simply as condos is usually a main residence or trip house, they can be an actual property funding.
Once you’re able to take the following step in your homeownership journey, you’ll be able to determine whether or not to promote your condominium or flip it right into a rental property, including to your earnings stream.
Remember to seek the advice of your accountant as you take a look at how the professionals and cons and determine how the earnings, bills, and maybe an funding house mortgage may give you the results you want.
You’ll additionally wish to verify along with your HOA’s guidelines and laws to make sure that you’re in a position to lease the condominium out for the size of time you need. As an illustration, some HOAs are high quality with long-term, one-year leases however don’t enable condos to be rented by the day, week, or month (à la Airbnb or VRBO).
Keep in mind, too, that even whereas your condominium is vacant, you continue to must pay your month-to-month HOA charges, so be sure you issue that into your ROI.
Able to Get Going?
When you’ve thought-about all the advantages of investing in condos and requested your self the fitting questions, we’re right here that will help you take the following step.
APM even provides non-QM (certified mortgage) financing for non-warrantable condos (the place there’s a lawsuit pending in opposition to the HOA—a quite common incidence).
Plus, shopping for a condominium is less complicated than ever now because of new condominium approval guidelines for FHA loans. FHA will now allow you to purchase a condominium inside a fancy that it hasn’t accepted but (aka a “spot approval”).
This implies some condos that weren’t beforehand eligible for FHA financing now meet the standards. Extra eligible properties equals extra stock and extra decisions for you!
And don’t overlook the perks of FHA financing, like low down fee choices, decrease credit score rating necessities, decrease rates of interest, and extra.
Our APM Mortgage Advisors will help you get the mortgage course of began whether or not you’re trying to purchase a condominium or single-family house. They’re additionally well-versed in all of the ins and outs of condominium possession and actual property funding. Give us a name in the present day to get the ball rolling.