Buying a Condo vs. a Home: What's the Difference?

Buying a house is a goal for many people. While some folks envision a single-family residence as their dream home, purchasing a condominium brings its own set of benefits. Let's take a look at the benefits of buying a single-family home versus a condominium.

Benefits of Buying a House

If buying a home is your goal, then you're likely most interested in these benefits:

• Buying a house means you own your property and can usually do with it what you please. You can create a backyard oasis, turn a spare bedroom into a fitness center, or make any number of renovations to the interior and exterior to create your dream home.
• When you own your own home, you can decide who lives in it. You can rent it out to generate supplementary income, you can offer guests a short-term place to stay, and you can allow as many pets as you'd like to live with you. Condo associations do not permit many of these options. 
• Not only is homeownership a mark of pride for some, but it's also an investment in your future. Buying a home lets you own a piece of real estate that you can then sell in the future to fund your other goals. 

Benefits of Buying a Condo

If buying a home is an option, but you're curious about other property types, you may prefer these benefits associated with buying a condo:

• Many condos are more affordable than buying a home, yet they still can offer nearly the same general interior features, such as upgraded kitchens, serene bathrooms, and great entertaining spaces.
• Most condos offer community amenities such as swimming pools and recreation centers, which are available for private use by residents. 
• Often, a condominium will take care of responsibilities like landscaping and other maintenance tasks. They also offer a level of dedicated security around the clock, such as security guards.

Drawbacks of Buying a House

Buying a home is a great feeling, but there are also a few drawbacks of homeownership, including:

• When buying a house, you're responsible for all issues and repairs. Repairs mean either having to fix the problems yourself or paying a professional for maintenance.
• The upfront costs of buying a house are usually much more than buying a condo. Saving up to buy a home may take you longer than saving for a condominium.
• Living in an HOA will have its perks and drawbacks as well. For instance, it may prevent you from making certain changes to your home's exterior, such as its color or landscaping. 

Drawbacks of Buying a Condo

Although condos do offer some advantages over buying a home, they also come with their share of drawbacks, including: 

• You may experience a lack of privacy because of proximity to neighbors. The shared amenities such as a pool and fitness center also may not be preferable for those who want to relax in solitude.
• Condo association rules are quite advantageous, but at times they may prevent you from doing what you want. For instance, there may be restrictions on what you can put on your balcony or what renovations you can make in your unit.
• Depending on availability, you may not be able to get the specific unit you desire. For instance, ground-level units or units with certain features may be limited in your desired location.

Compare the pros and cons of each to discover which is the right type of homeownership for you.