A lifelong goal many people strive to achieve is owning a property. In time past, people had to rent property due to the stress associated with owning one but these days, most people own their properties. While both renting and buying have their own sets of financial benefits, renting appears to have an upper hand when the economy is poor. There are different factors to be considered when searching for a home one of which is the type of property and this brings us to condominiums and apartment. Most people get stuck at the point of deciding to either own a condo or an apartment and some don’t even know the difference. Here are some points to guide your decision
Ownership: Although both definitions look similar in the context, a condo is an abbreviation for condominium which is a building in which each unit is owned by an individual but the grounds, structure and facility is jointly owned while an apartment is a suite of rooms within a domicile designated for a specific person or persons including a bedroom and it is usually rented. The most notable difference between condo and apartment living is ownership. Property investment is one of the guiding factors for people who choose condominium because they are one of the best options for building equity in cities. Another factor is that buying or paying off a condo is a form of self investment which is contrary to apartments where your rent goes to your landlord. There are also benefits associated with owning a condo such as customizing or altering certain features to suit you and this you do not get with apartments.
Management: Condos are usually managed by association boards and committee that are made up of residents of the community. Condo owners have a much stronger voice within their community and how regulations and bylaws govern the community while apartment renters are subject to theirs landlord’s decisions. For condo owners, homeowners association fees are paid on monthly basis for the maintenance of infrastructure like swimming pool and fitness centre. Although, the HOA fees may be subject to increase and decrease at the detriment of the owner. In contrast, management of apartment is usually the sole decision of the landlord and the occupants are at the mercy of the landlord.
Maintenance: As earlier discussed, maintenance of external feature is carried out jointly for condo owners but for apartment’s owner, it is the responsibility of the landlord. The responsibility of maintaining the internal features or rectifying faults is solely that of the condo owner. In contrast, apartment owner enjoy the privilege of transferring such responsibility to the landlord.
Flexibility: Getting an apartment is a great way to stay flexible because most leases last for a year. An apartment is also suitable when you plan on staying in an area temporarily or only interested in getting a feel for an area before buying or are not financially set up to purchase. You can also get well furnished apartment that offers month to month leases. All this benefits cannot be gotten when you opt for a condo which is usually more rigid. Although, some condos can be rented out and other cannot due to regulations governing the condo association.
Payment: Monthly payment which is dependent on down payment, interest rate and loan programs stays fixed for condo as you pay it off. Owning a condo gives you a predictable amount that will be paid every month. In contrast, you may encounter rises in rent paid for your apartment every period your lease ends and there is a little bit of unpredictability to your expenses.
The bottom line is that both the condo and the apartment have their pros and cons,ownership boils down to your choice, decision and financial strength.