Monday, August 1, 2016

Making the Right Choice: Condo vs. Apartment

Whether you're already live in Boston or want to move into the city, it's important you understand the difference between a condo and apartment.

Although there has been something of a condo building development craze in Boston in recent years, you'll still find a lot of great choices for renting apartments in Boston.

In this article, we'll consider some of the advantages of each, and why you might choose one over the other.

What's The Difference Between Condos And Apartments?

Apartments are units contained within buildings owned by a company or a person, who often serves as the building manager and handles maintenance for the grounds.

Either this person or a manager is responsible for renting out individual units and supplying them with appropriate appliances.

Condos are individual units that are owned by the occupants, similar to owning a house. The difference is that there is shared property with other condo owners. Owners can decide to rent out their condo to someone else.

As far as the common areas of a condo building, a single condominium corporation (e.g. a property management company in Boston) usually owns and manages all of them, and then charges individual condo owners for that service.

Advantages Of Renting An Apartment

One of the biggest advantages of renting an apartment is that you have the flexibility of securing a lease.

This is especially useful if you're uncertain about the future and do not want to commit to one place for a long period of time

Since you don't own anything, you're not responsible for any of the maintenance. When something breaks, all you have to do is inform the landlord to get it fixed.

You'll also spend a lot less renting an apartment than you will buying a condo. Your upfront expenses will only involve a security deposit and the first month's rent, as opposed to the down payment on a condo and paying for closing costs.

Disadvantages Of Renting An Apartment

Every month, you will be sending your landlord a check to pay for place you do not own, which does nothing to secure your future.

You are also subject to monthly or annual rental increases, which you have no control over.

You will also be subject to whatever restrictions are in place for the apartment complex, and you'll have to accept the apartment furnishings as they are. It's even possible that you could lose your residence after the expiration of your lease, if the landlord declines renewal.

Advantages Of Buying A Condo

Buying a condo is not as expensive as buying a house, so if you really want the thrill of ownership without the massive expense of a house, a condo might be ideal for you.

Your monthly payments on a condo will not be subject to increase as they would be in an apartment, and each one of those monthly payments does actually accumulate as an investment.

Ownership also carries the benefits of tax breaks and asset appreciation. Even though you own a condo and must recognize the importance of cleaning your condo, the condo homeowner's association usually will handle things like landscaping, snow removal, leaky roofs, and faulty plumbing.

For questions about specific responsibility, check with your homeowner association, or the Boston property maintenance and emergency support.

Disadvantages Of Buying A Condo

As a condo owner, you automatically become a community member in a shared facility, which translates to paying homeowner association fees monthly. These can be fairly significant, so make sure to include them in the total cost of ownership.

You also are responsible for the shared space. You have no choice, but to respect the other owners in the complex because they pay the same fees you do. We aren't saying be a bad neighbor, but in a condo you were there for more than just a year like an apartment.

Another significant disadvantage of condo ownership is that when it comes time to sell, these units typically do not move as quickly as single-family units would.

Since their value appreciates more slowly than a house, you probably won't receive a big profit from the sale of your condo If it becomes time-critical that you sell, it's entirely possible that you will absorb a financial loss.

Deciding Between A Condo And An Apartment

Ultimately, your decision on whether to look for a condo or an apartment will probably be influenced strongly by your financial situation and your goals in life at the time.

If you want to become a property owner, a condo is the way to go - but if you don't want the responsibility of maintaining the place, an apartment setting would be better.

Should you have any questions about living in an apartment or owning a condo in Boston please contact Premier Property Solutions for expert advice and personalized recommendations.