Isn’t everyone’s dream to live in a suburban community with a house as large as that of Kevin McAllister’s? Or is it the other way around? Do we actually want to live in a New York City apartment like our “friends” Rachel and Monica? Or maybe we want both? Maybe there’s a part of us that wants to mow the lawn in the morning and read the newspaper while overlooking the garden. Then, another part wants the hustle and bustle of city life.
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If there is good land for sale in Townsville or other cities, will you make an offer? Or do you prefer to live in a condominium unit or a flat? The decision to invest in a house and lot or an apartment unit depends on where you are in your life, as well as your preferences.
Can you afford it? Can you maintain it? Can you grow a family while living in this space? Speaking of space, is it enough for the kind of future you’re imaging yourself to have? Think about it. You will likely spend the next 20 years of your life paying the mortgage for this house or apartment. You have to be sure that you can envision yourself spending many years in it. Or, if not, you need to choose based on its future value.
Apartment or Condominium
The best part about investing in an apartment or a condominium unit is the price. On average, condominiums are at least $20,000 cheaper than a house and lot. Of course, this number is bigger in other markets, especially in the more exclusive residential areas. Lower prices mean lower down payments and monthly amortization.
If you have a hard time maintaining your rental apartment, can you just imagine what it’s like to maintain your own place? One of the main advantages of investing in an apartment or a condominium unit is that you are not responsible for its repairs and maintenance. The exterior of the condominium building is managed by the homeowner’s association. You are only going to be responsible for the interior of the unit.
And because apartments are smaller, they are mostly located near cities and downtown areas. Those who are focused on their careers will do well in these bustling cities where cultural activities and job opportunities await.
House and Lot
By definition, condominium units don’t have land. So if you want to own a real estate property, you should have a piece of land. A detached house and lot have plenty of space for you to experiment with. You can have a swimming pool or a backyard garden. You can host barbecue parties and play football games. You can have a private party in your own backyard without having to worry about your neighbors.
Your house and lot have room to grow. If in the future you decide to have a family, your house can accommodate it. You can put up walls for more rooms. At the same time, you can knock down walls, too, so that you’ll have plenty of family space. In condos, you will have to ask permission from the homeowner’s association regarding any expansion that you want.
When it comes to reselling your property, a house is always the better choice. There are lots of condo units on the market. Why would anyone want to buy a secondhand condo if they can have a new one for almost the same price? Should you put your price down? But how can you regain your investment?
There are advantages and disadvantages to both these housing types. There is no better option. It is up to you to determine where you are in your life and decide accordingly.