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When looking for your first property, you may see condominiums as an alternative versus a freehold, detached property, however, I ask the question of why must it be an alternative as opposed to the goal? As a first-time homebuyer, purchasing a condominium as your first property can be a great opportunity and incredible long-term investment. Here are five reasons, you should buy a condominium as your first property.
Affordability
The number one advantage to purchasing a condominium comes down to affordability. With sometimes smaller spaces and less land to occupy, the build cost is significantly reduced while the purchaser demographic is tailored towards more specific buyers. This can make the barrier to entering the market much lower while still paying down a mortgage.
Up-Keep Costs
You’ve given up your savings to purchase a property, now what? The upkeep and maintenance costs, time to purchase a lawnmower, snow blower, maintain the roof, windows, doors, foundation, siding, and landscaping. Limited access to finances after purchasing means that you might have to go without. A condominium fee acts as protection against unexpected and big-ticket items in your home.
Insurance
The typical insurance premium for a freehold property will be between $100 – $200 a month. Compare to a condominium, and your insurance premium will typically be around $30 a month. Automatically this will offset a portion of your monthly condominium fees.
Long Term Rental Ability
Once it’s time to move onto the next property, a condominium makes for an excellent rental opportunity. With easy hands of renting, you’re able to rent out the property, hire a property manager and collect your rent payments without having to consistently upkeep the exterior.
Lifestyle
Many home buyers gravitate to the condominium lifestyle because of the instant community feel, amenities offered, and ability to spend more time doing what they love versus spending it managing a property.
