I know many people who have never lived in a day in their lives in a condo, nor do they care to live in one. There are many arguments that can be made in favor of living in a condo versus living in a house. My preference will always be to own and live in a house, as it is important to me to have a piece of land to call my own. On the other hand, if a condo property is destroyed by natural disasters, there goes your “land in the sky.” However, depending on the zip code, the “land in the sky” might be more valuable and affordable.
BENEFITS OF LIVING IN A CONDO
- Low Cost and Less Maintenance
Condo living is not for everyone. Those persons who are in the early stages of their lives and do not want to cut the lawn are the best candidates for this lifestyle. Similarly, seniors who are downsizing and are no longer able to keep up with a high property maintenance cost and physical upkeep. It offers a low maintenance lifestyle for sure. No lawn maintenance, reduced monthly utilities, and insurance. Some utility bills like water and basic cable are usually rolled into the monthly HOA fees.
- More affordable asset
Depending on the zip code, a condo is usually a more affordable purchase or rental option. It is cheaper to furnish for sure. Condos are a more attainable housing goal for all and usually require a smaller deposit to purchase with a mortgage. For the seniors in retirement, they can sometimes purchase multiple condos when they downsize and sell their large homes. Therefore, they can live in one condo and rent the other/s.
- Provides income
Condos are great assets generating income. Condos in the right zip codes are easier to rent out, as rental prices on condos are usually lower (not in all cases), and they usually rent faster as great Airbnb options.
- Security
Condo living usually comes with 24-hour security or the feeling of security as your neighbors are close by. If you desire to have greater security or you are afraid of isolation and you are in search of community, then condo living is a better choice for you.
BENEFITS OF LIVING IN A HOUSE
- Square footage
A house offers more square footage than a condo. I have lived in a few condos over the years, and there is nothing that can replace the feeling of grass beneath my feet. A house offers more living space and immediate access to outdoors.
- Yard space
If you enjoy gardening and landscaping, living in a house offers you the ability to engage in these activities, with some amount of physical outdoor space.
- Direct access to your garage
Unlike condos, a house usually offers direct access to your garage. Except in cities like NY and London where parking is roadside even if you are living in a house in that city. However, most houses come with an attached garage or yard to park your vehicle that is quite useful for grocery shopping and deliveries, particularly during a change of season.
- Return on investment
Houses bought in the right zip code usually deliver on equity in a shorter time frame. The value on such properties usually increases at an accelerated rate over time, providing greater opportunities for home equity loans or greater net worth and generational wealth. Buying the right house in your prime can easily result in you being able to buy three (3) condos in your retirement.
- A house can be converted into apartments
This is the greatest benefit for me. Depending on where your house is located, that house can be converted into two or more apartments. However, your single apartment or condo cannot be converted into a house.
WHAT ARE THE CONS?
There are no real cons when it comes to investing in real estate in the right zip code. Your choice of home or purchase should be a reflection of your needs and financial health. Don’t buy what you cannot afford.
Condo
If your choice is condo living, then pay attention to those high condo/ HOA feess. If the goal is to collect rental income, then high demand for this property reduces the risk of high HOA fees affecting your cash flow. Also, you will have limited control over exterior changes.
Houses deliver more returns over time. However, you do not want to put yourself in a situation where you are living in a house that is not making money for you. Being “house poor” is not a progressive move. Buy what you can afford. Your present home should be able to boost your retirement fund. In other words, it should be able to convert into revenue generating apartments or should allow you to purchase a few in the future. Houses cost more to maintain.
House
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