Which Should You Buy A House Or Condo?
A decision when purchasing a home here in Huntsville and Madison, Alabama especially for the first time home buyer is whether to buy a house or a condo or possibly a town home. The difference between them can be huge; with a house the home owner is responsible for all maintenance and insurance. With condominium living the home owner owns air rights , not the land and pays into an association that covers a variety of things such as; building maintenance, yard maintenance, common areas, exterior insurance, etc. With a town home the owner typically owns the the land under the town home and the interest in common areas is different from condos as well.
Buyers may think that there is less risk involved owning a condominium or town home, but that is not necessarily true. During our last economic downturn, condo and town home owners were faced with the same issues as single family home owners. The risk is your ability to pay your monthly mortgage commitment, so either way if you lose job your home is at risk.
As an investment, buying a condo or town home might make more sense especially if you plan on living in it for a while giving you future possible rental income. However, you need to check with the association making sure rentals are allowed. Also, FHA requires a certain percentage of condo units be owner-occupied.
Detached or single family homes usually requires that the owner is responsible for all maintenance from yard work to replacing roofs and HVAC systems. If you are not a "handy" type person you'll have to hire a contractor which can get quite expensive. With condominium and town home communities the exterior of the dwelling and some interior work is handled by the association. You pay into a general monthly fund for this work. Work is typically on a regular or routine basis so you are free to go on about your business whether you are at home or not. This frees you up to live a come and go life style not being worried about yard work, painting or other exterior maintenance issues.
A possible down side to condominiums is the monthly dues that can sometimes be high or continually adjusted upward. Also, special assessments can occur when units are storm damaged or community upgrades are added.
Which should you buy; house or condo?
Whether you buy a house, condo, town home or patio home there are challenges or risks and there are rewards. As a local Huntsville Alabama Realtor I'm familiar with all residential property and ownership, I can help you determine which is the best option for your needs. Give me a call to discuss and show you what is available to you and what your options are.
Originally posted at...http://nicktpappas.com/?p=2605
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