Deciding on which housing option is best takes careful consideration. Those who live in cities or near the beach will often prefer to rent an apartment or buy a condominium because of their lower prices and great location. Choosing between the two, however, can be difficult. Which is the right option?
Choosing a Condo
One of the main advantages of buying a condominium is the fact that paying a mortgage will build up equity over time. The money is spent as a means of buying the property, and the property can later be sold if the owners wants to move. While the real estate market crash hurt many property owners, property is still a wise investment. Considering the fact that having a place to live is necessary, buying a condo is often a great long-term idea.
There are, however, some downsides to owning property. The market can rise and fall, and the equity of a particular piece of property can quickly drop. Further, buying a property saddles purchasers with the obligation of paying off the mortgage or finding a buyer. Those whose homes have dropped in value may still owe money even after the property has been sold.
Choosing an Apartment
Apartments, on the other hand, do not build up equity. In exchange, they give renters the ability to easily move once the lease is up. For people who may want to move at some point in the next year or two, this flexibility makes them a superior option. Apartments may also be available in some parts of a city that do not have condos, and someone who wants to live in the heart of a downtown area might have no option but to rent.
It is also important to decide which option is more realistic. Getting a mortgage requires securing a loan, and those with poor credit scores might not be able to find a lender who will work with them. Poor credit often means higher interest rates that can add up over time. There are, however, government programs that can assist buyers, and these might make ownership a viable option to those who would not otherwise be able to afford a particular property.
Ultimately, each individual must decide which is the better option for him or her. Those who are committed to living in a particular area who have a steady income might be wise to choose a condo, and those who might want to consider moving will benefit more from an apartment.
- Photo By StuSeeger
Peter Wendt is a writer and researcher that recently moved to the beautiful city of Austin, Texas. He was initially torn between a condo and an apartment, but opted for an apartment after he found his dream place with this best Austin apartment locator.