Condos and apartments are both the same structurally; they are both small portions of a larger living complex. In the case of an apartment, a person pays rent and is bound to living in an apartment for a certain period of time by a written contract called a lease. The apartment is owned by another person who the apartment resident pays monthly rent to in exchange for being allowed to live there. Condos, on the other hand, are individually owned. The process of buying a condo is similar to buying a house in that the buyer will generally seek a mortgage loan from a bank.
The benefit of buying a condo rather than renting an apartment is that when a person buys a condo through a mortgage lender, their monthly mortgage payment can be locked in for the length of the loan. Apartment renters, however, do not have that luxury and many find that rent increases at the termination of each lease term.
Because condos are individually owned units of a larger building or complex, the collective group of condo owners, referred to as the home owner’s association, is the owner of the entire property. Home owners associations generally charge condo residents a monthly fee, referred to as homeowner’s association dues, which go toward the maintenance of the entire unit. For major purchases or renovations to be approved, each condo owner will generally take a vote as to how their dues payments should be used. They can be used for repairs or for routine services like lawn maintenance, private security services or trash collection.
Many people looking for a place to live for the long term may find that condos are more economical because mortgage payments are locked in and home owner’s association dues can’t be increased without a collective vote. On the other hand, people who move a lot or are unsure of where they want to settle down may benefit from an apartment. When a condo buyer has to move the burden of finding a buyer and closing the deal may take more time than is convenient for the owner. Many apartment owners who have to move can request to be released from their lease and incur a much smaller debt than a condo owner who has to continue to make mortgage payments until a new owner is found. In most cases, an apartment owner can buy themselves out of a lease if their apartment management agrees to such an arrangement.
For those who don’t move often and who know that they want to settle down right where they are, a condo is a great investment. Condos, like all other real estate, are great investments because of the increased chance that the property will rise in value. A person may be able to not only lock in their monthly mortgage payments, but also turn a considerable profit from selling their condo at just the right time.
All in all, it’s really a personal choice whether to live in a condo or an apartment. While condos can save and even make money, apartments offer the convenience of being easily left should the need arise. You can visit Newton Hawker Centre to compare condos and apartments. You can look at potential property options as well, this way you can see what best suited for you.