A lot of people I've talked to have told me that with an apartment you pay rent each month that basically goes nowhere, whereas with a condo the money you put into it eventually ends on you owning the condo (kinda like a mortgage). Is this true?
2006-08-16 15:59:51 · 17 answers · asked by Patiggs 3 in Home & Garden ➔ Other - Home & Garden
Also once you do own the condo are you stuck with it forever or can you sell it?
2006-08-16 17:03:41 · update #1
Typically you actually have to BUY the condo for it to be like a mortgage but it may be different then around here in Cali. However same as with any owned property the only differences between owning and renting is...at the end of the day:
Buying:
-Paying is 100% on your head and missed/late payments absolutely will be reported to a credit bureau.
-You do get to keep the house at the end of teh day but cahnces are by the time you finish paying it off....you might not like what you're left with depending on the amount you've had to put in along the way.
-Property Taxes
Renting:
-You pay generally the same each month but management could (ideally) give you a break with paying or even reduce rent if they wanted you to stay.
-You generally pay the same each month but management could increase rent or report to credit bureaus if you are late (with limitations)
-When you leave.....that's it and all those memories are then...rented to someone else
-You don't have to pay for most repairs (unless you destroyed in the first place) but regular wear and tear has to be fixed by owner in a timely manner and COMPLETELY by the owner.
2006-08-16 16:11:44 · answer #1 · answered by Patricia R 2 · 0⤊ 0⤋
With a condo you get the advantages of apartment living coupled with the pride of home ownership. You buy one just as you would buy a house, you have a mortgage and a mortgage payment, but it is an apartment or townhome rather than a house. You will have condo fees to pay for maintenance (lawncare, landscaping, building maintenance, snow removal etc.) none of which you have to do yourself.
I have a condo and it was a great starter home for me as a single female. Now that I'm married I rent it out and use the income it generates to continue paying the mortgage. It's a great investment.
2006-08-16 23:47:42 · answer #2 · answered by LindaLou 7 · 0⤊ 0⤋
When you purchase a condo make sure to read the fine print, usually there are hidden cost every first of the year or the fall of the year. They call this a maintenance cost, but it is for parking, garbage, ground fees and other little things just like a apartment but you are required to fix anything in the condo that is broken.
You best bet is to buy a house this gives you tax advantages that you do not have and it will belong to you and will build equity if you decide to sell.
2006-08-16 23:57:28 · answer #3 · answered by 421blast 2 · 0⤊ 0⤋
Buying a condo is BETTER IN THE LONG RUN !! in an apt. they take your money. I lived in apts. for 6 years. & thinking of moving to these condo's near here all this time. I move in SEPT 15. Great timing for your question ! I lived in these 1 & 2 bedrooms apartments for 6 years. since my mom passed away. These apartments are 1 bedroom for 725.00 . and 2 bedroom for 925.00. I used to live 2 blocks away. those apts were 625.00 1 bedroom. I won custody of my daughter I have to get a 2 bedroom, I sleep on the couch. AND 5 years times 12 months is 72 times $925.00 is $66,600 I wasted now in 6 years. the only thing I get back is rent credit at the end of the year. about 900.00. big deal. And they get the rest. In a house or condo. the payment ALWAYS stays the same every year. its in the agreement ( contract ) year, after year, after year NEVER GO'S UP ! my mom & dads house back in 1955 was only 16,000 and the payments were $160.00 a month! believe it or not ! today the house is worth $260,000 . A house or condo builds equity. or VALUE !! renting dont ! owning a Condo. or house is Better. !!! it builds equity . Renting Dont. they take.
2006-08-16 23:53:07 · answer #4 · answered by mr_know_it_all_12345 3 · 0⤊ 0⤋
Depends entirely on the place. You can also rent a condo or lease a condo. Make sure it's a rent to buy option if that is what you are interested in.
It's always better to buy than to rent and if you are a first time buyer you can generally get away with little or no down payment. Go talk to a mortgage broker.
2006-08-16 23:09:21 · answer #5 · answered by TMH 4 · 0⤊ 0⤋
Yes but then you are stuck with a condo you will get sick of soon, and you can still hear the neighbors just like an apartment. If you have good credit and plan to live where you are for the next 5+ years, get into a home.
2006-08-16 23:07:11 · answer #6 · answered by Later Me 4 · 0⤊ 0⤋
Yup, A condo you buy like a house. Condos are cheaper in the long run but require maintance and work unlike an appartment. So as long as you got the time and the capital to get a Condo, go for it and save/make money in the long run.
2006-08-16 23:06:25 · answer #7 · answered by purplewingduck 2 · 0⤊ 0⤋
Yes. A condo is real property but you also have to deal with ever rising maintenance costs, a condo association and perhaps a neighbor who is noisy. If you live in an apartment, you just move and find another place but as you said, there is no equity built up in apartment rental.
2006-08-16 23:09:43 · answer #8 · answered by Anonymous · 0⤊ 0⤋
it's the same difference as renting or owning a home, a condo you would own, an apartment you would just be paying rent! best of luck, i live in rhode island and condos are booming here!
2006-08-16 23:22:06 · answer #9 · answered by jasvcent14 4 · 0⤊ 0⤋
Yup it's true, but compare prices and keep in mind that if something breaks in a condo you have to pay for repair or replacement where you just call the office in an apartment .
2006-08-16 23:05:49 · answer #10 · answered by Anonymous · 1⤊ 0⤋