The issue of real estate has become one of the most complicated in America right now. As housing prices have continued to surge, wages haven’t always kept up for people in lower income brackets. That being said, owning a house is often beyond the reach of many. In turn, this leaves you two real living scenarios. The first is to rent an apartment, while the second is to try to buy a condominium. Renting an apartment may not be quite so expensive in theory, but you don’t end up with anything in the long run. Buying a condo suffers from some of the same problems that buying a home does. Prices are high, though not as high as most housing options. In the end, all of this tends to lead to the question, “Is it better for me to rent an apartment or buy a condo?”
Answer: Your financial situation and ideal living location will help you decide.
For people who want to purchase a condominium, they will often have to undergo the same process as buying a house. They’ll need to either buy it outright or they will have to get a mortgage for the condo. The biggest factor when deciding to buy a condominium has to be the features it offers against the standard condominium fees that are involved. The condominium fees are something that especially needs to be watched. Many condos will offer rather cheap fees for the first few years in an effort to get every unit sold. Then after that, they can raise them quite a bit. Some people may end up paying condo fees that approach the cost of renting an apartment. This is obviously less than ideal and to be avoided. There’s one huge benefit to buying a condominium over an apartment however. You end up owning something. If you move out you can sell the condominium and hopefully recoup the original purchase price or much more. Admittedly, if the housing market is not as robust as it was when purchased, it’s possible to take a loss or to struggle to sell, though in most cases, a break even scenario is probably the worst case outcome. If you have the down payment saved and can handle the condo fees, a condominium is probably the right choice for you.
If this all seems too expensive, then renting an apartment is probably the way to go. While apartment costs have been going up, in theory they are supposed to be less expensive than a mortgage. Essentially, while renting an apartment,you can save up the down payment to eventually buy a house via mortgage. In reality, many people are stuck in a rental scenario for a long period of time. Many people are now choosing to avoid mortgages entirely due to the rising cost of homes and instead just choose to rent and use the money to improve their apartment living situation. The apartment option is ideal if housing in your area is very expensive, or if you’re expecting to potentially move in the near future. Apartment rental doesn’t have the serious commitment that purchasing a condominium or even trying to purchase a home does. This makes it the most flexible housing option.
There’s a lot of information out there relating to both apartments and condominiums. Everyone needs to live somewhere after all. These resources can help with more information about the experience of choosing your next home with information about both condos and apartments.
- Bankrate.com - This website focuses on financial issues and on the many aspects of life which can cost a lot of money. This article is focused specifically on the debate of condo versus apartment. It brings up the criteria to consider and spells out the differences in each choice.
- Apartments.com - Unsurprisingly, apartments.com is a website that assists people in every aspect of apartment rental. This article focuses on the real differences between getting an apartment and choosing to buy a condominium.
- Rent.com - This is another website that focuses on helping people to figure out their housing situation, especially when it comes to apartments. This article is another that explains the difference between apartments and condos, but also attempts to show which is the ideal scenario for each user.