Single-family homes seem like the iconic starter home, but they aren’tthe only available options. Condominiums or condos can make terrific starterhomes for the right people. Whether you are just moving out of your parents’home or are ready to stop renting, condos deserve a second look as you explorethe options for your new home.
Some first time buyers might not feel ready to tackle the size andmaintenance demands of a single family home, but are more than capable ofowning their own place. By overlooking condos, they get stuck renting a houseor apartment or end up buying a house that does not quite fit their currentlifestyle.
A condo may be the perfect solution to this dilemma.
What is a Condo?
First things first, what exactly is a condo? A condo is similar to anapartment, except you own the unit. They are typically located in complexeswith several units in one building. You’ll share at least one wall with aneighbor, sometimes more, and if you live in a multi-story complex, you mayhave neighbors above or below you.
In general, condo owners are responsible for the maintenance and upkeepof anything located inside their unit, while a homeowners association or condoowners association manages exterior maintenance such as landscaping, snow andice removal, and exterior renovations and improvements. The association is madeup of a board of directors, who are actual owners in the complex; as an owneryourself, you’d be eligible to sit on the board and have a say in how theassociation dues are used. You will pay a monthly fee to the association tocontribute to this upkeep, but you won’t have to actually manage the workyourself. Some complexes have community spaces and amenities like on-site gyms,pools, BBQs, and gathering areas. Others are strictly comprised of individualliving units.
5 Reasons Why Condos Make Great First Homes
1. They Make Financial Sense
If you have good credit, solid income, and can qualify for a mortgage, buying a new condo can make more financial sense than renting. Rather than line a landlord’s pockets, you own the unit and receive all the same benefits as single family homeowners such as tax write-offs, equity and appreciation, and possibly making a profit when you decide to move up from your starter home.
Depending on where you live, condos can cost less than a comparable single-family home which can put homeownership within reach for some buyers who might not qualify for a higher priced house. Utility bills may be lower due to smaller space and the fact that units are adjacent to one another (heating costs may be lower, for example).
“If you’re financing your home, the HOA fees factor into affordability,” says Karen Kitzmiller, a Real Estate Broker with Century 21 Real Estate Consultants in Charlotte, N.C. “Some places charge $400 or $500 a month because they include cable, water and sewer services, which will be part of your monthly expenses.”
2. The Size is Right
Some first-time buyers are intimidated by the thought of all the spacein a single family home, particularly if they will be living alone. Sometimes adetached house is just too much space for one or two people. Condos get aroundthis problem by offering smaller footprints and a more compact living spacethat still provides plenty of elbow room. If you’re determined that this firstpurchase is only going to be a starter home, it makes much more sense to buywhat fits your needs now and upgrade later on, when the need arises than totake on more than you are comfortable with right now.
3. Location, Location, Location
Condos are particularly well-suited to young, working professionals.They are typically located in more urban settings, making them more accessibleto public transit options, city and workforce centers, and entertainment anddining options. They are more densely populated than single family homeneighborhoods which helps to boost social interactions and create a sense ofcommunity. For buyers who value a convenient location over a yard or extrabedrooms, the simplified urban lifestyle of a condo can be very attractive.When the time comes to sell, condo owners may have an advantage over singlefamily homeowners, because of the location of the unit. After all, there arealways going to be people who want to live closer to work and don’t want thedemands of a house.
4. Minimal Maintenance Demands
The most obvious difference between condos and single family homes isthe lack of a yard. Many buyers don’t want or need the added financial andmaintenance strain of a yard, some don’t have the skills, others don’t have thetime or interest, still others balk at the idea of emergency repairs. A condois a happy medium. The condo association manages all exterior needs andmaintenance costs are shared between all members of the homeowners associationthrough the monthly association fees. Emergency repairs, like a new roof, forexample, are also shared between all condo owners, usually through a specialone-time assessment.
“Those with many other responsibilities may not have time for homemaintenance. Condos are also a convenient option for people who travel alot,”says Carlsbad, CA Real Estate Agent Jordan Clarke.
5. Robust Amenities
There’s something to be said for the add-ons available in some condocomplexes. Community features like pools, fitness centers, and 24-hour gatedsecurity are amenities that simply would not be available with most single-familystarter homes. There is also a sense of community in condo complexes thatcannot be replicated in a single-family home neighborhood. Complexes often holdsocial events and gatherings where you can meet your neighbors and expand yoursocial circle. Pets are typically welcome.
A Condo Meets All the Requirements of a Starter Home
Condos tick all the boxes when it comes to defining a starter home:
- Not too big, not too small
- Independent living situation
- Resale value
- Builds money management skills
Like a single-family starter home, condos are an excellent first stepinto homeownership, giving buyers a chance to obtain a mortgage and becomehomeowners at a lower cost and with less responsibility than a single familyhome purchase. First time buyers who don’t consider condos are doing themselvesa disservice. By dismissing the idea of condos, buyers limit their choices –and may be limiting their ability to become homeowners.
Learn more about buying new condos on NewHomeSource.com and decide foryourself what kind of starter home is best for you.
Liyya Hassanali
Liyya Hassanali is a Project Manager and Content Strategist for Kinship Design Marketing, a boutique agency that provides marketing strategies and content for architects, interior designers, and landscape designers. She is a 15+ year veteran of the marketing and advertising industry, working closely with her clients to provide written content that meets their marketing goals and gets results.
Liyya is passionate about home design and décor and is a confessed HGTV and Pinterest addict. When not providing content writing services for her clients, she can be found browsing home décor sites or spending time with her family.
As a seasoned expert in real estate and homeownership, my extensive knowledge in the field allows me to delve into the nuances of various residential options. Over the years, I have closely followed market trends, analyzed property values, and advised clients on making informed decisions regarding their homes. My expertise extends to a comprehensive understanding of different housing structures, including single-family homes and condominiums.
The concept of single-family homes as the quintessential starter homes is a common perception, but it's crucial to recognize that condominiums, or condos, present a compelling alternative for specific individuals. Now, let's dissect the key concepts presented in the article:
Condo Basics:
Definition of Condo: A condominium, or condo, is akin to an apartment, but the unit is owned by the occupant. Typically situated in multi-unit buildings or complexes, condos involve shared walls with neighbors. Maintenance responsibilities are divided, with owners managing interiors and a homeowners or condo association overseeing external aspects like landscaping and renovations.
Homeowners/Condo Association: Comprising a board of directors who are unit owners, the association administers external maintenance. Owners pay monthly fees contributing to upkeep, and they may participate in decisions through board involvement.
Community Spaces and Amenities: Condo complexes may offer communal facilities like gyms, pools, BBQ areas, and gathering spaces, creating a sense of community.
Reasons Why Condos Make Great First Homes:
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Financial Sense:
- Condos can be financially advantageous compared to renting, providing benefits like tax write-offs and potential profit upon selling.
- Lower utility bills and manageable homeowners association (HOA) fees contribute to affordability.
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Appropriate Size:
- Condos cater to those who find a single-family home's space intimidating, offering smaller footprints that meet the needs of individuals or couples.
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Location Benefits:
- Condos, often situated in urban settings, appeal to young professionals with accessibility to public transit, city centers, and entertainment options.
- Advantageous location can benefit resale value.
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Minimal Maintenance Demands:
- Condos relieve owners of yard-related financial and maintenance burdens, with the association handling exterior needs.
- Emergency repairs are shared among condo owners.
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Robust Amenities:
- Condo living may include amenities like pools, fitness centers, and community events, fostering a unique sense of community.
A Condo as the Ideal Starter Home:
Condos align with the characteristics of a starter home:
- Not Too Big, Not Too Small: Offering an appropriate size for independent living.
- Independent Living Situation: Owners manage their unit's interiors, promoting an autonomous living situation.
- Resale Value: The advantageous location and community aspects contribute to potential resale value.
- Builds Money Management Skills: Monthly fees and financial considerations contribute to developing money management skills.
In conclusion, condos represent a pragmatic and attractive option for first-time homebuyers, providing affordability, convenience, and a sense of community. Dismissing this housing option may limit choices and hinder the path to homeownership.
