You are in the market for a new home. Whether you should buy or rent a condo really depends on a lot of factors: your lifestyle, how big your family is, where you are in your life, your salary, and a host of other factors. It can also boil down to something as simple as your preferences. If you are at a point in your life where you pass the entry-level stage, you may be thinking of buying your first property. Buying a condo, buying a townhouse, or buying a single-family house comes with its own benefits and drawbacks.
Let’s take a look at what makes each housing situation more advantageous than the others by examining the Scottsdale real estate market. Arizona has the best of both worlds, so they are the perfect situation to look at. Consider the following scenarios below, before you make your decision on what kind of property to invest in.
Considering Condos: What Makes Them a Good Idea
Condo dwellers who don’t want to deal with house maintenance and a large space will say that Scottsdale condos are the better investment. Take a look at the following specific reasons here to help you make an informed choice.
Condo units are typically less expensive than houses
If you’re an investor with not much budget to start with, then putting your money in a condo unit makes perfect sense. The NAR (National Association of Realtors) said that the median existing single-family house price as of January 2018 is $241,700. The NAR reported that for condo units, the median price in the same year is only #231,600. That’s a significant difference of almost ten thousand dollars.
The reason for this is compared with a single family-family dwelling, ownership of a condo unit actually is partial ownership in a share of the land or “common complex or property”. In essence, condos typically take the form of an apartment, or shared complex where your townhouse falls under, making a townhouse, in essence, a sort of condo.
These are popular in places within areas that have high property value like urban areas or vacation hot spots, which is precisely the reason why Scottsdale condos are a hot commodity. These shared spaces proliferate in these areas because buying a single detached family home in a place with scarce land is too cost-prohibitive. Thus, if you’re ready to own your own home in a high property market area, but don’t have the cash, buying your condo (which can also be your townhome) is a great way to get into the housing market.
Added a note: since condos are typically smaller in size, you pay less in property taxes as opposed to your larger single-family home.
With condos, you don’t have to worry about exterior repairs and maintenance
This is the primary advantage of living in a Scottsdale condo or townhouse complex. While homeowners will be busy raking leaves, trimming hedges, mowing lawns, painting exteriors, cleaning gutters, shoveling snow, and the like, condo owners don’t have to worry about such things. You can relax by the pool on a super warm Arizona day or enjoy a hot cup of cocoa if it’s too cool outside. You just let your maintenance guys worry about these headaches.
The reason for this is the exterior of a condo or townhouse is both owned and maintained by a homeowner’s association or HOA. As the owner, you’re only responsible for the interior. Anything and everything that is outside of your front door is none of your concern. This leaves you a lot of time and money for other pursuits.
Consider the prime property location
Since these types of dwellings are smaller and more densely populated, they are often located in the downtown area that is closer to where the action is. It would certainly be a lot more convenient to be near your work, shipping, and other hot spots. As a result, condo dwellers have shorter commutes, fewer gas expenses and wear and tear on their vehicles than homeowners, who typically reside in the farther residential areas.
Think about the multitude of amenities
Larger condo neighborhoods, like condo complexes or townhomes, are typically packed with shared amenities that the residents can all enjoy. There are swimming pools, tennis courts, gym facilities, play areas, jogging paths, and more. Those who live in single detached homes have to travel to access these kinds of amenities because they can’t access it without leaving their property.
Since condos are closer to each other, you are literally surrounded by a bunch of other people. This creates an avenue for making social connections. For retirees or others who are seeking companionship and friends, living in a condo can make this happen easily. Unlike in neighborhoods of single detached homes that tend to create distance between neighbors with their vast yard spatial boundaries, none of that exists in a condo. There is more likelihood of intermingling in a condo, which also manages to attract like-minded individuals with similar backgrounds.
Housing Matters: Why a Single Detached Home is a Better Investment
If you dream of owning a colonial-style house with red french shutters and an eye-catching red door, with a picket fence, then going single-detached is the only way. There are some advantages to owning a house as opposed to owning a condo, so do read on below to find out what these are.
Owning actual land
By definition, you don’t own land when you live in a condo. You own a share to use the collective property. By buying a single-detached house, you own a piece of honest to goodness land that is solely yours on the face of the earth. The property may need some maintenance, but you can do whatever you want with it like adding a pool, fixing up a garden, hosting barbeques, and the like. This somehow gives you a huge sense of security in the forever fluctuating Scottsdale real estate market. if you decide to keep your house for a long-term investment, this is a better choice than a condo.
Express yourself with your home style
One of the inherent disadvantages of a condo is uniformity. You can’t make changes to the exterior. With a single-detached home, you can readily increase your property’s value by making changes such as modifying the vinyl sidings, adding a deck, sprucing things up with a flower bed, and more. Everything is your property and you have the power to do whatever you want with it.
Offers room for you to grow
Because you own the land, you can extend your house to meet the needs of your growing family. You can add a pool, knock down walls to create a bigger family room, or add a guest house. All of these modifications will also increase the value of your property, making it a sound investment. You can’t do any of that in your condo complex may it be an apartment or townhouse type situation. On top of that, condos have limits to the number of people who can stay there. Some don’t even allow pets. These are the things you have to consider when you make your home investment.
A single-detached home is easier to sell than a condo
In a bad housing market, it is harder to sell a condo because a condo is akin to a substitute house that people tend to buy in robust market conditions. In contrast, single detached homes on an owned lot tend to be more liquid in all kinds of market conditions. Remember, condos are uniform, so they typically don’t appeal to certain people that prefer a more individualized look. This is also one of the primary reasons that after many years, condos are converted to rental properties because they are harder to sell.
As you can see, there are advantages and disadvantages to each housing type. The main thing here is to choose whatever works well for your needs and lifestyle. Single-family homes and condos are not inherently better or worse, but this all depends entirely on your situation and preferences.