There are various reasons why purchasing a condo today might be a good idea. Condos are more popular than ever, and the aging Baby Boomer generation is a major driving force behind this trend. Because of this, condos are becoming more popular, and their prices are going up faster than those of single-family homes.

Whether you're just beginning a family or trying to avoid the empty nest blues, condo living might be a terrific alternative. But only some people are cut out for condo life. So, before we look at the benefits and drawbacks of condo living, let’s first talk about what a condo is.

What is a “Condo”?

You can say that a condo is like a building with mini-apartments that you can own. But, in some critical ways, a condo hugely differs from an apartment.

A condominium, or "condo," is a unit in a multi-family building that is privately owned. On the other hand, an apartment is a rented unit in a multi-family building. Residents of condos usually have access to shared amenities like a clubhouse, a swimming pool, and well-kept gardens. In contrast to renters, condo owners are responsible for keeping these facilities up and running as part of their monthly fees.

Condos that look like townhouses share walls with the buildings next to them on one or both sides. If the condo is part of a larger building or high-rise, other apartments may be around it.

Condo Living: The Pros

Do you have what it takes to own a condo, or would a single-family home make you happier? It’s a complicated matter. Even though many people like living in a condo because it is convenient and social, others find that they would rather live independently. 

There are pros and cons to living in a condo, and let's start by looking at the upsides.

1. It requires fewer repairs.

One of the best things about living in a condo is that other people take care of repairs. The maintenance staff cuts the grass, edges it, takes care of the roof and snow, and even replaces the siding, so you don't have to. It’s a huge benefit if you're a first-time homeowner, have a bad back, are always busy, don't like taking care of your yard, or all of the above.

Condos are a good choice for people who want to age in place because the units are close together, there are maintenance workers on site who can handle major repairs, and there are a lot of social and recreational activities to do.

2. You’ll have the convenience of amenities.

Would you like a pool or a place to exercise? What about the games that happen every Wednesday night at the clubhouse? Most people can't afford the high-end amenities that many condo complexes offer.

With these conveniences, getting to know your neighbors may also be easier. It could be a great perk for people who are single and like to hang out with others.

3. You’ll have high-level security.

Most condo buildings today have security guards, gated or locked entrances, and door attendants. It may be good news for people who live alone or worry about home invasions. Many people surround you, so you can always ask someone for help if you ever need it.

4. You’ll have easy access to city life.

Condos close to busy downtown areas are popular for several different reasons.

First, some people would want to be able to walk, ride a bike, or take public transportation to and from work instead of sitting in rush-hour traffic for an hour or more every day. Living close to your job could save you a lot of money on gas and car repairs.

On top of that, being so close to a busy downtown makes it easy to try out new restaurants, go shopping, and see performances by local artists. When it's easier to be out and about, like when you walk or take the bus, you're more likely to get more exercise. The value of a condo in a good area may go up faster than that of a condo in the suburbs, which could make the former a good investment.

5. It has the potential to appreciate.

In the past, condos have appreciated slower than single-family homes because more people wanted single-family homes. Buying a house is also a good investment because it gives you access to land, which is one of the main things that adds to the value of a property.

But things are getting better. The Washington Post used data from Trulia to show that the market value of condominiums went up by 38.4% between 2012 and 2017. During the same period, the value of single-family homes only increased by 27.1%.

Condo Living: The Cons

There are many good things about living in a condo, but there are also some downsides.

1. The Homeowner’s Monthly Dues.

The costs of running a swimming pool, gym, security system, and the staff that works with them are not small. Buying a condo is like putting money into a business you and other residents run together. In addition to your mortgage payment, you also have to pay a homeowners' association (HOA) fee. This fee will be used, among other things, to fix up the parking lot and build a dog park.

Considering inflation, it's not surprising that prices and fees are all going up. Studies show no link between HOA costs and changes in house prices over time, and HOA payments went up even in years when the median value of a home went down. Between 2005 and 2015, HOA dues went up by 32.4%, which was more than the increase in house value, which was only 15.1%.

So, living in a condo comes with a high monthly cost and the certainty that it will only go up as time goes on. Because of the recent fee hikes, you may have to leave your condo if you need more money to afford the higher living costs.

2. You’ll have inadequate privacy.

Another problem is that the design of a condo is similar to that of an apartment building. You probably also remember from when you were a young adult that living in an apartment isn't always a bed of roses.

If you live in a condo, you probably share walls with others and have neighbors in the units above and below you. You might see neighbors walking down the hall or around the grounds at any time of day or night. At 2 a.m., you have to listen to their wedding party, fights, and baby crying.

In short, condos aren't always the best way to avoid noise and traffic.

3. You’ll have more rules and regulations.

If you live in a condo, you have to follow the rules set by the management. Let's say you want to save energy at home by putting things like a solar panel on your roof that uses green energy. You can't just start; you must first get permission from the condo organization. You're out of luck if they say no to what you want.

There may be a long list of rules that owners of HOAs must follow. For instance, your HOA may limit the number of dogs you can have or even the breeds you can keep. They might limit the number of people who can come or set up "quiet times" to reduce noise. They may also limit the kinds of changes or decorations you can make.

Some people might like living by someone else's rules, but others might find it hard.

4. You might have trouble selling it in a pinch.

Condos might be hard to sell for several reasons.

First of all, everyone doesn't want to live in a condo. Families with small children or many pets often want a yard, and some people just don't want to live on top of others. These things make it harder for people to buy from you.

You should also think about your HOA. If your HOA fees are too high, some people won't be able to afford to buy. People will only want to live in your HOA if it has enough money and the neighborhood is in good shape. When it comes to selling, the HOA significantly impacts how quickly a condo sells.

Buyers who want a mortgage will also look at how well your HOA is doing financially. Many lenders won't give a loan to an HOA that is in court or doesn't have enough money saved. Some lenders may refuse the loan if the town has many renters. All of these problems could make it harder for people to buy from you.

Lastly, since most condos in a neighborhood look the same, unoccupied apartments in your building will probably sell first. And good luck if a lot of apartments are empty.

5. Delinquency of other unit owners might affect you big time.

You and everyone else in the condo complex must pay for maintenance together. People may stop paying their organization dues when they have trouble making ends meet. It means that everyone else will have to pay more dues to make up for the late payment, leaving you with the short end of the stick.

Final Thoughts

There's no doubt that buying a condo could be a good investment for some people. Living in a low-maintenance house where important decisions are made by someone else may be freeing for older people who no longer have children at home, young families, and busy professionals. Condo living is probably not for you, though, if you value your privacy and independence and don't want to live by someone else's rules.

Do you live in an apartment building? Do you like it, or would you be happier in a single-family home? Let us know in the comments below!

And if you are looking to buy a condo or a home but don’t know what’s best for you, we can help. Contact us today at Loft Realty, and let’s rundown the best strategy for buying a home that fits your needs.