Should You Purchase A Condo or A Single-Family Home?

Condominiums: No Longer Starter Homes

A few years ago first-time buyers would buy into condominiums in hopes of later moving up into a single-family home. Many new homebuyers still prefer condos, but there are also many families who stay with condos throughout the years often moving up from one-bedroom to two or three-bedroom units. In addition, many "empty nesters" are benefiting from a building boom of new luxury condos.

These apartment complex look alike are built as high or mid-rise buildings. Each complex differs as to whether the owner or the association is responsible for interior vs. exterior maintenance, repairs, and replacements. Owners pay dues to a home owners association that essentially manages the Condominium building; maintaining the building and handling any repairs to the common areas often by hiring a property manager. You'll have a vote in the association, but you'll be subject to all the bylaws, covenants, conditions, and restrictions. There may be rules about the color of window coverings, the number of pets you can own, or even the changes you can make inside your unit.

In some urban areas, you may find apartment-style residences under a different form of ownership, called co-ops. Basically, you become a part-owner of a corporation; you buy shares of stock in the Cooperative, and you receive a lease that entitles you to occupy your apartment, but you don't actually own legal Title to the space.

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