Top 5 Reasons Why Condos are Ideal for Retirees (2024)

FAQs

Top 5 Reasons Why Condos are Ideal for Retirees? ›

If you can't wait to stop caring for the yard, want to meet new people, and enjoy year-round amenities nearby, condo living could be the answer. It isn't always about downsizing either, since some retirees leave smaller homes and move into condos with larger floor plans.

If you can't wait to stop caring for the yard, want to meet new people, and enjoy year-round amenities nearby, condo living could be the answer. It isn't always about downsizing either, since some retirees leave smaller homes and move into condos with larger floor plans.

With shared amenities, common spaces and outdoor maintenance services, condos are perfect for those interested in owning their own property without all the added responsibilities that come with homeownership.

One of the primary benefits of owning a condo is the low maintenance required. Owners are not responsible for outdoor repairs or upkeep, such as mowing lawns or fixing roofs, because these tasks are managed by the homeowner's association (HOA).

Maintaining a single-family home generally requires more upkeep than a condo, like yardwork or other maintenance. Condos have the advantage of reducing your personal responsibility to your space, freeing up your time. In addition, owning a condo can reduce costs since expenses are shared.

There are good reasons to own a home after retiring, but there are also plenty of arguments for renting. Renting can be less expensive as you skip the burdens of property taxes and maintenance costs. However, owning can be less stressful since you don't have to worry about a landlord raising your rent.

Investing in a condo can be a smart decision, especially in an expensive real estate market. Condos often cost less than single-family homes and you don't have to worry about maintenance or repairs.

Less Maintenance

While condo owners have to pay for maintenance through HOA fees, they typically avoid doing a lot of work and upkeep that other homeowners might get stuck doing themselves.

Since condos can be a bit more cookie cutter than freestanding homes, you might have to work a bit harder to make it stand out (particularly if other units in your complex are for sale at the same time). To show your condo at its best, you'll want to clean it, make repairs, and declutter your possessions.

What's the downside of owning a condo? ›

Ramsey says these are the biggest cons of condo ownership

The lack of privacy due to shared common areas. Ongoing maintenance fees. Limited location options. The fact that condos cost more than apartments.

Yes, condos generally appreciate in value. That's true of any piece of property—as long as it doesn't have wheels or come from a trailer park. But, if you're trying to decide between a condo or a house, keep in mind that a single-family home is usually going to grow in value faster than a condo will.

Increased Expenses and HOA Fees

Your mortgage payment could increase when all things are considered. Also, most condo communities have added Homeowners Association Fees. As mentioned, these dues cover regular maintenance and expenses like lawn cutting, pool cleaning, etc.

Pros of buying a condo

When answering the question of whether to rent or buy a condo, try putting together a five-year plan. If you see yourself staying in the same place for five or more years, buying may make more sense. Plus, buying has advantages over renting: Building equity occurs with every mortgage payment.

Properties in desirable areas can appreciate in value faster. Even so, condos tend to appreciate slower than single-family homes. Still, certain features can cause a condo to appreciate at a faster rate. These may include community amenities, property maintenance and walkability to nearby cities and attractions.

The biggest downside to buying a condo is a lack of privacy. Since you share common spaces with other residents in the building, you'll see your neighbors frequently. Plus, you'll likely hear them, too, since you share walls with them.

Living in a condo usually puts you in close proximity to work or school, as well as the creaturely comforts of a modern urban lifestyle. Because of their strategic locations, condo living means avoiding time-consuming daily drives, stressful heavy traffic, difficult commutes, and dangerous night rides.

After plugging in assumptions on investment returns, maintenance costs, home appreciation and other factors, the retiree would come out ahead financially by renting for less than five years. If the retiree plans to stay longer, buying would be a better choice.

Truthfully, there is no one definitive answer to this question. It largely depends on the specific building and its security features. However, in general, condominiums can provide a much safer living environment than apartments or single-detached houses.