Selecting Between a New Home and a New Condo, Part 1

avoiding mortgage homebuying errors
Avoiding Common Mortgage and Homebuying Errors, Part 2
June 9, 2020
selecting new home condo
Selecting Between a New Home and a New Condo, Part 2
August 11, 2020
selecting between new home condo

If you’ve made the decision to move from renting to ownership of a property, one of your first big questions will be regarding what type of property to purchase. Do you look for a traditional single-family home and become a homeowner, or do you consider an alternative like a condominium?

At VIP Mortgage Inc, we’re proud to offer fantastic mortgage rates and a wide array of mortgage programs for all our clients, whether you’re going the house or condo route for your purchase. In this two-part blog series, we’ll look at some of the pros and cons of each selection through the lens of several of the most important factors many buyers prioritize, from cost all the way to more distinct amenities.

Cost Considerations

There’s no question cost is a vital factor for many buyers, often the single most important one at play. The lower the price of the property, the lower your required down payment and expected monthly mortgage payments.

And while condos tend to come in at a slightly lower average national price than single-family homes, this area is highly variable based on a number of additional factors – the difference often isn’t enough to be the deciding variable, in other words. Many markets see a difference of between $5,000 and $10,000 between comparable condos and homes; this isn’t nothing, of course, but it’s also not usually enough, over the life of a 15- or 30-year mortgage, to be the final factor that pushes you over the edge.

Yard and Personal Space

Many buyers prioritize outdoor space on their property, and this is an area where homes tend to hold major advantages over condos in many cases. Those who enjoy such spaces, particularly families with either children or pets who will naturally need some space to stretch their legs, usually look for single-family homes – condos are hit-or-miss when it comes to grassy space, and even those that do have such private areas are generally pretty small.

On the other hand, some individuals or professional couples without pets or children may not have much need or desire for such outdoor landscapes. In fact, some may prefer to avoid them for maintenance and upkeep reasons.

Space Themes

Space is also a major factor within the property, and it’s another area where homes tend to hold an advantage – though you should be aware that there are a huge variety of condos on the market, including many that are very spacious. That said, larger families tend to prefer the layout of a home situation, one where there’s not only bedroom and living space but also some additional property space, both indoors and outdoors, that’s only yours.

For more on choosing between a condo and a home for your mortgage and purchase, or to learn about any of our mortgage loan services, speak to the staff at VIP Mortgage Inc today.

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