Where you live plays a big role in your quality of life. Learn the differences between a condo and a house to see which is best for you.
Choosing a home
When you’re in the market for purchasing a home, single-family homes and condos are the two most common types that you’ll see. Choosing the right type of home is important, and it makes a big impact on your life.
Related: What’s a home equity line of credit?
Your finances and how you live will be dictated by the one you choose. Learn what the differences are because it’s more than just size.
Why a condo is better
If you’re looking to purchase your first home, a condo may be a good choice because they generally cost less than a single-family home.
According to Statista, the average condo price across the nation is $249,500, while the average house price is $408,800.
Overall, condos cost less than houses. Of course, it depends on the location, as well.
A condominium or condo is similar to an apartment when it comes to the structure. The difference is that it’s privately owned, not rented.
You’ll also have neighbors all around you, which means you won’t feel alone. The vast number of social connections is one of the main perks of owning a condo.
Generally, condos will also have common areas for residents to enjoy. They’ll have a gym, park, courtyard, pool, parking garages, entertainment centers, and other shared amenities.
The amenities are a benefit of owning a condo because you can enjoy them without leaving your home.
Another aspect that makes owning a condo appealing is that you only have to worry about the interior of your unit. Everything else is maintained by the homeowner’s association, which you pay condo dues towards.
This means that you don’t have to mow the lawn, clean the gutters, or repair the exterior of the building. It’ll all be done for you, allowing you to focus on enjoying life.
Why a house is better
Condos are single units located in a building. With houses, there are many different shapes and sizes. When looking for a house, the price tag is generally higher. It’s because you’re purchasing the land and the house.
One of the main reasons to choose a house over a condo is size and privacy. With a house, you won’t be sharing walls with your neighbor. Instead, you get to have your own space.
Also, having more space is better if you have kids or pets. It allows them to roam around without feeling restricted.
Another benefit of buying a house is that the average increase in value is greater than a condo. If you decide to sell your house down the road, you may be able to sell it for a higher price based on appreciation.
The costs associated with a condo and a house are different. It’s an important part of homeownership to consider and understand.
Related article: 7 types of mortgage loans
The following are common costs associated with owning a home.
1. Purchase price. In most areas, a condo costs less than a house. You must compare them in the same location because a condo in New York City can cost more than a house in Overland Park, Kansas.
2. Condo or homeowner’s association (HOA) dues. Since the HOA is managing everything outside of your condo, you’ll pay condo dues.
If you own a house in a specific neighborhood, you may be required to pay for it. However, most neighborhoods don’t have HOA dues. If you do, it’s minimal compared to a condo.
3. Property taxes. In most cases, the property taxes for a condo is less than a house because you’re occupying less space.
4. Insurance. It’ll cost more for a single-family home because you’re insuring the entire property and land. If you own a condo, you’re insuring your unit.
5. Maintenance. Owning a house means you’ll pay more for maintenance than owning a condo. With a condo, you only have to maintain your unit. Everything else is maintained by the HOA.
The type of home you choose depends on your lifestyle and what you value in a home. If you crave privacy, space, and have a family or pets, a house is better. If you want a smaller space, to be in a prime location, and don’t want to worry about maintenance, a condo may be a better choice.
Featured image courtesy of Canva.
About David Em
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.