If you’re looking to become a homeowner but the price of single-family homes makes you hesitate, you may want to consider a condominium or townhouse. These types of homes often come with a lower barrier to entry, and that can help you start building equity and enjoy the benefits of homeownership sooner.
Since they are typically smaller than single-family homes, they can be easier on your wallet. While not always the case, smaller square footage usually comes with a lower price tag as well. Consequently, according to the latest data from real estate agent.com. Condos typically have a lower sales price than single-family homes (see graph below):
And here is some interesting news: Homebuilders are focusing more on homes like these.
The National Association of Home Builders (NAHB) says:
“The proportion of townhouses being built is at an all-time high.”
That means there are a large number of options to add to your housing search if you expand it to include condos and townhomes. And you may even find something that fits your budget better.
So, if you’re comfortable with a smaller space and want to buy your first home before spring, adding these types of homes to your search could be your answer.
The advantages of a condo lifestyle
Living in a condominium also has many other advantages. Let’s take a closer look at why condos are attractive to first-time buyers:
- They help you start building equity. When you purchase a condo or townhome, you build equity and equity as you make mortgage payments and as the value of your condo increases over time.
- They may require little maintenance. Condos are great if you want to own your place but don’t want to mow the lawn, shovel snow, or fix the roof. Your real estate agent can help explain the associated fees and details of the condos you are interested in.
- They usually come with a variety of amenities. Your condo may have access to a pool, dog park, or parking. And the best part? You don’t have to take care of any of them.
- They create a sense of community. Buying a condo means you’ll live close to other people, which is nice if you want a more close-knit feel. Many communities like these host fun events, such as barbecues and parties, to help create that sense of connection between residents.
Remember, your first home doesn’t have to be the one you’ll stay in forever. The important thing is to get your foot in the door becoming a homeowner so you can start gaining home equity. Later, that capital can help you buy another place if you want something different.
Ultimately, owning and living in a condo or townhome is a lifestyle choice. If you want to see if it makes sense for you, talk to a local real estate agent.
Ready to find a home that suits your goals? A condo could be the perfect option for purchasing your first home.
