Deciding whether to buy a house or a condo can leave many buyers stumped. Weighing the pros and cons alone may not bring your to an obvious decision, especially as you take in factors like your lifestyle, preferences, financial situation, and long-term goals.
If you are feeling a bit of analysis paralysis, consider asking yourself these questions to guide you to the right choice for you.
How much space do I need?
Consider your current and future space requirements. If you value more space, a house might be a better fit even if you need to buy something older or in need of more renovation in order to get a comparable price to a newer condo. However, if you prefer a more compact living arrangement with less maintenance, a condo could be a great fit.
How much maintenance am I ready to take on?
Houses typically come with outdoor spaces that require maintenance, such as a yard or garden. If you enjoy gardening and outdoor activities, a house may be appealing. If not, a condo with shared outdoor spaces that are maintained by the homeowners’ association (HOA) might be more suitable.
In general, houses are going to require more maintenance than condos. This will vary somewhat depending on how much maintenance is covered by the condo association and the condition of the home, but deciding how much maintenance you want to handle will help guide your decision.
Is customization and renovation a priority for me?
Renovation and customizing a home is a top priority for some buyers, while others are content to simply furnish a home in order to make it feel like their own. If you are looking forward to home improvement projects and customizing your home, you may find a house a better fit. While you can certainly renovate a condo, you may be more limited.
What level of privacy do I prefer?
A condo is going to offer less privacy than a home, but for some buyers this is not a major concern. Houses generally offer more privacy as they are standalone properties with private yards. Condos, on the other hand, often involve shared walls and common areas, potentially impacting privacy levels. Decide how important this factor is to you before buying a home as it is one thing you can’t really change.
What can I afford? What are the living expenses associated with each?
Evaluate your budget and consider your financial capacity. Houses often come with a higher upfront cost, but condos might have additional monthly HOA fees. Assess both the initial purchase price and ongoing expenses.
In addition to mortgage payments, consider potential condo fees. These fees contribute to the maintenance of shared spaces and amenities. Understand what the fees cover and how they fit into your budget.
You also need to investigate tax implications associated with buying a house or a condo. Property taxes, mortgage interest deductions, and potential tax benefits may vary between the two.
What are my long term goals? How do I expect my life to change in the next few years?
When you buy a home, it makes sense to consider how long that home will meet your needs. Of course none of us has a crystal ball, but if your life goes according to plan (more or less) in the next few years, make sure that the home you buy is going to work with that plan.
Decide how long you intend to own the home, and what life chances you anticipate during that time. Do you expect to grow your family? Adopt a pet? Retire? Keep these factors in mind to make sure they align with your choice.
How important is location?
Evaluate the importance of location in your decision. Condos are often located in more urban areas, while houses may be in suburban or rural settings. Consider proximity to work, schools, and other essential services.
What amenities are important to me?
What amenities matter most to you? Condos often come with shared amenities like gyms, pools, and communal spaces. Houses may offer more private amenities like large yards or additional storage. There are also some single family home neighborhoods that have community amenities to offer.
What is the resale potential?
Even at the beginning of owning a home, you always want to keep the resale potential in mind. We understand that selling the home you are currently buying is probably not on your mind, but the day you decide to sell may come faster than you think. Your future self will thank you for keeping resale potential in mind as your choose a home to buy. Research the resale potential of both houses and condos in the area. Understand the demand for each property type and how well they historically retain value.
Are you looking for homes for sale in Northeastern Wisconsin? Whether it’s a condo in Green Bay or a house in De Pere, these local real estate agents can help.