What are the pros & cons of owning a condo (apartment) over a house?

Question

This questions is real estate market in India. One reason to choose apartment is mainly for cost.
House cost is almost 3 to 4 times than apartment cost.

Answer 1

I guess you can rent it out as long as you like and make profit that way it also depends where the condo is located nice area bad area etc.... I own a couple condos and I bought one for 69,000 very nice fixed it up everything brand new put about 10,000 in it now Im going on the 5th year since I bought it and the value went way up I made my the full recover the 3rd year just by renting it out now the money now I collect is 950.00 and thats extra spare money that I have, good investment good luck wish you the very best.

Answer 2

Look at it this way: Living in a condo is like living in an apartment. Your neighbors are close and you will have to hear and see and sometimes smell them (tasting is optional). Yes, the grounds are kept up but you pay fees for that. The same money could be used to pay someone to do the maintenance at your house.

A house offers you more freedom and usually more privacy and your own yard. It is a bigger responsibility but will be easier to sell when the time comes.

So if you are social and dream of having a Melrose Place kind of experience, go for the condo. If you want some space and want your own driveway go for the house.

Answer 3

-CONS-
Living too close together.
People who seem to be bothered most include older couples without children, working couples, nonsocial people who demand peace and quiet at all times, and people who do not like dogs and children.

Noisy neighbors and especially noisy children.
The success of town house and condo living for many families depends on their neighbors. Quiet neighbors are a blessing. Noisy neighbors are a constant nuisance.

Owners do not like renters.
Owners believe, with much justification, that renters cause a town house or condo complex to go downhill. Often, as projects become older, owners move away and keep their town house or condominium as a rental property. To overcome the disadvantages of renters, the bylaws of some associations forbid renting. Developers and mortgage holders should be aware that renters are a major factor in lowering long-term property values.

Car parking.
Two parking spaces per unit, either in a garage or in the open, are not enough. In comparison with apartment families, town house families are larger, have more children, more cars, do more entertaining, and need more guest parking.

Board of directors and management.
Some residents get angry and irritated with the way their association is managed. Some are so bitter they sell their homes and move away. This is unfortunate because the association is a major factor in making the condominium or town house group work successfully. Much of this criticism rests with the developer: He did not set up the association properly, did not train or educate residents to take it over properly, and did not recommend knowledgeable, professional managers.

Answer 4

There are already numerous answers that give the pros of a condo, such as not having to maintain the public spaces/yard, more affordability, and cons, such as a condo board with rules (which may affect being able to rent it to others), closer living space to neighbors, and potentially taking longer to sell as well as the pros of a stand alone home, such as more space and privace, potentially more parking, the ability to make changes as you see fit without board approval, and to rent to whomever you chose and cons of a home, such as needing to maintain the yard, generally a more expensive investment, and full responsibility for the "space". I am not including monthly maintenance fees as either a pro or con, as owning a stand alone home has costs for maintenance that a condo does not have.

Many of these, however, will depend upon your own needs and situation. For instance, I live in a coop in NYC (similar to a condo, but having shares in a corporation and a lease on the space rather than owning the physical space of the apartment, not unique to New York, but much more common here). I do not have a car, so parking is not an issue for me. My building has very thick and solid walls, so I never (in 2 1/2 years) hear my neighbors. I don't intend upon renting out the space, rather using it as a primary residence, so restrictions on how long it can be rented out and required board approval are not an issue. I could not afford a several million dollar stand alone home in my area, so this is a good investment and living option for me. The market here is very robust, and coops and condos have a higher demand and sell quicker than stand alone homes. Renovations that I have made (kitchen) have not been a problem with the board, and I have no intention or need of moving any walls. I'm allowed to paint the walls any color I choose, and change fixtures (lights, faucets, switches) as I choose. Monthly maintenance fees cover water, electric, sewage, building tax and garbage collection fees which greatly reduces my monthly bills. Of course, not all condos and coops do cover all of these fees, but most include some of them. I consider only needing to write out and mail one check per month for all of these utilities a huge benefit.

I disagree that a coop or condo is not a good investment and is only giving money to another investor. It is true that this is the case for a rental apartment, but for a purchased apartment, real estate is real estate. The value of my unit has almost doubled in 2 1/2 years, so if I were to sell it I would have a very nice profit, much moreso than most investments. Even if I were to sell it for a much less profit and "break even" with the purchase cost, there would be the savings of what would have been given to a landlord of a rental with no return on investment. Of course, the market here may be different than where you are looking to purchase, but real estate in almost all markets, including coops and condos, is always more lucrative than renting. The tax benefits are also staggering, although I'm not familiar with tax laws in India and don't know if you are able to deduct the interest on the mortgage from your taxable income base. In this market, the cost paid to both my mortgage and maintence fees is much less after tax rebates than it would cost to rent a similar apartment, and I am growing equity.

Answer 5

A con is you become a member of a condo association & must abide by the rules & regulations of the condo association. the association determines what kind of mail box you can have, what colors you can paint things on the outside of you condo, you must keep your yard looking a certain way, etc... and you must pay condo dues.

Answer 6

One pro is that you often do not have to maintain the exterior of a townhouse/condo. However, in such a case there would be monthly condo fees, which can be a hassle.

Answer 7

YOu won't get any profit...all you are really doing is essentially paying someone elses investment. And with the market the way it is it would be a good idea to invest in a house. Purchasing that is.

Answer 8

Buy a house...why have to listen thru the wall the neighbors having sex or arguing ! get some land around you. Also, if there is a drug addict who falls asleep in the unit next to you with stuff on the stove..your place goes up in flames as well !

Answer 9

You don't have to do any lawn/yard maintenance. It is a good way to start yourself on the road to property ownership if you can't quite afford a house yet.

Answer 10

Depends on how much interest you have to pay and how long before you start gaining equity.