Condo on the Chesapeake Bay at the mouth of the Susquehanna River
Financing Your Property Were You Want
to Live
General real estate financing can include a number of
different lending vehicles and may come from a variety of sources. As it is
with most forms of lending, real estate financing will hinge on the
creditworthiness of the individual. It may also be impacted by the amount
requested and the value of the property in question. General real estate
financing is provided by traditional banking institutions, mortgage companies
and credit unions. Loans may also be backed up through federal programs.
Four Advantages of Condo Ownership
I am old and I do not want to cut the grass anymore. I don’t want to do my own maintenance anymore. I do not want to clean up after a snow storm. So I am a prime candidate for condo living. Now if you are young and need a place to stay with the new wife, a condo might be first in your list of properties to buy.
I am old and I do not want to cut the grass anymore. I don’t want to do my own maintenance anymore. I do not want to clean up after a snow storm. So I am a prime candidate for condo living. Now if you are young and need a place to stay with the new wife, a condo might be first in your list of properties to buy.
Condo ownership is generally thought of as a step to home
ownership, and there are many reasons it can financially prepare you for the
demands of later owning a home. Generally speaking, condos are less expensive
than comparable single-family properties. By owning and maintaining a condo
first, you can set yourself up for the next step of owning a single-family
home.
#1 Lower Down Payment
First-time home buyers in particular have a challenge when
it comes to putting down a down payment. They do not have a previous property
sale to supply them with income to do this, and many are young or in the early
stages of their careers. As a result, opting for a condo with a low required
down payment can make the process more affordable. On the flip side, an older
couple looking to downsize or retire will also benefit from a low down payment.
The difference between the sales price of a larger home and the money required
for down payment can be used as extra spending cash in retirement when many
people need it most.
#2 Property Sales Value
The sales value of a condo can be driven upwards due to
improvements to and the desirability of the general condo building. As a rule,
condos in small buildings are less affected by bubbles and busts in the housing
market than are condos in big buildings. However, even condos in large
complexes can present great property sales value if there are not many other
units for sale at the time you prepare to sell. In this case, you are offering
a chance to buy into a building where few opportunities exist. You will be
rewarded with a more competitive market and higher prices.
#3 Amenities and Benefits
While you do have to pay homeowners' association fees in
order to receive many benefits of condo ownership, these fees represent only a
fraction of the cost of your total benefits. For example, if you would like to
have a rooftop pool in the middle of Chicago, you may have to pay several
millions of dollars. As a member of an HOA in a condo that has this benefit,
though, you can enjoy your rooftop pool for only a few hundred dollars a month.
Financially, the amenities offered by many buildings are a great bargain to
individual homeowners.
#4 Lower Utility and Maintenance Fees
The cost to maintain a small property is much lower than the
cost to maintain a large property. Even in a relatively large condo, you are
not paying for items such as your roof, windows or driveway. While these costs
do come out of your HOA fees, you are again sharing the cost with a number of
homeowners. Further, it is less expensive to heat, cool, furnish and clean a
condo than a large home. This can represent savings that may later be used to
purchase a house. Or in the case of individuals looking to downsize, these
savings can be spent on living enhancements.
My Opinion
After reading the opinion of the Financial Portal, let me
give you my opinion. A condo or a home is not an investment and should not be
treated as such. A condo or a home should be treated as a place to live for now
and for a time where it no longer suits your family needs. Property values do
not always go up as people found out in this 21st century. So do not
buy a property thinking that you are buying it to make money in the future.
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