Condominiums: What Do You Need To Know?

Buying a property is always an exciting time, but each type of property can have very different pros and cons associated with it. Condominiums (aka “Condos”) are no different. So should you buy a condo? Is it a good investment? A bad one?

Read on to find out what you need to know!

First: Limited Space

The first thing to realize is that there will be limited space. Usually condos are slightly bigger than a large apartment, but keep in mind that can be split in two or even three floors (and possibly include a basement). Even a nice condo can feel a bit narrow and contained.

This isn’t necessarily a bad thing, but usable space is limited.

Two: House Hacking Options

If the property is set up right you may be able to buy the whole thing, meaning you live in one condo while renters live in one (or more) others connected to the building. This can create the perfect opportunity for house hacking, allowing you to buy real estate to live in and start out with earning rental income.

In good situations the rent from the others may pay for the monthly mortgage payments completely.

Three: Is It FHA Approved?

This can have a wide array of effects including what types of loans you can get, what the rates are, and if there are any programs that can help off-set the purchase price. While it not being FHA approved might not be a deal breaker in some cases, it’s still definitely something you should have a look at.

Four: What Are Your Long-Term Goals?

Are you looking at a forever home? In that case you probably don’t want a condo. Is this a starter option for investing? Something you want to flip?

Taking a serious look at your goals and whether or not a condo meets them is extremely important.

Finally, while condos can be a great buy keep in mind that noise tends to travel through the walls. So unless you have some serious sound proofing chops, it’s something you may have to put up with.