Buying your first home means you have a lot of decisions to make. You’ll need to decide on a location, the type of mortgage you need, and much more.
Something worth remembering, though: you don’t need to limit yourself to a single-family starter home. A condo can be an excellent choice, and it can also be a solid investment property. The reason? Well, the ever-expanding condo market can offer you many more options.
Great options aside, owning a condo comes with a few other benefits. Read on to learn what they are to decide if a condo is a right choice for you.
1. Investment Opportunities
While a condo can be your vacation home or permanent residence, it can also be an excellent investment. This means that when you decide to upgrade your living arrangements to accommodate your growing family, you can either sell your condo or turn it into a long-term stream of passive income.
You should assess the rental home market to determine whether you’ll get a good return on your investment. Right now, the rental market is booming in developed countries like Canada.
With a 24% increase in demand for rental properties in the Greater Toronto Area, buying a condo and contacting condominium property management companies Etobicoke is a good move.
To weigh your options, consult an accountant to determine if you should rent your condo. Look at the income you’ll receive, the expenses involved, and whether an investment loan is a good choice for you.
Before renting out your condo, you’ll also want to check the HOA rules and regulations regarding short-term and long-term rental. Some homeowners associations (HOAs) permit long-term leasing but prohibit short-term renting.
2. A Lower Price And A Lower Down Payment
A condo is usually the more affordable option for first-time home buyers. Typically, condos are sold at a lower price compared to single-family units that have the same amount of square footage.
Because condos have a lower price point, you’ll be able to take out a smaller loan and make smaller monthly payments. Even better, condos require a smaller down payment than single-family units.
3. HOA Handles Landscaping And Improvements
Because condos are usually governed by a homeowners association (HOA), the HOA dictates the rules and regulations for each condo complex. These regulations can be simple or complex, so reviewing them before purchasing is a good idea.
However, the upside to paying a monthly fee for the HOA is that they usually handle the upkeep and aesthetics of all common areas in the complex. This means the HOA typically handles the maintenance of the condo’s exterior, including the roof.
As a first-time buyer, it can be highly reassuring to know that the HOA will take care of the upkeep of your condo’s exterior in exchange for a monthly fee.
4. Customize The Inside
Although condos are apartments, you’ll own your property. Being able to decorate your home is always an exciting prospect for a first-time homeowner. If you want to paint the interior walls, make improvements, and decorate your space, you can.
However, it’s wise to double-check with the HOA if you want to make any more extensive renovations or change anything about your condo’s exterior. The HOA CC&Rs (covenants, conditions, and restrictions) will lay everything you can and cannot do out for you.
