Analyzing a home purchase vs. a condo purchase is equal parts quantitative and qualitative.
Quantitative (monetary) considerations:
- Does the house have an HOA and the associated monthly dues? A condo almost certainly would.
- Tied in with the HOA, a condo has less maintenance on things like yards, roofing, paint, etc. as it's paid by your HOA contribution in many cases. Thus, moving into a home with no HOA may save you a monthly payment, but not necessarily cost less in the
- If you're looking for a fixer-upper, then a home may provide you with more autonomy to do as you wish.
Qualitative (non-financial) considerations:
- Condos tend to be easier to rent out if you were looking to move or were required to relocate for work or something.
- If you enjoy traveling, a condo can often be a bit easier to "lock-and-leave" than a home.
Adam C. Harding, CFP
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