Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First Home
Friday Aug 13th, 2021Share
Are you someone who is getting very tired of paying rent every month and not building any equity? It can be quite painful to rent continuously, particularly if you are working towards the financial well-being of someone else. Thankfully, there are a few affordable real estate alternatives available for people investing in their first home. We have outlined some good reasons to opt for an apartment or condo if you are a first-time home buyer.
A Manageable Monthly Payment
In the majority of markets across the country, you can find condos and apartments for a significantly lower price when compared to full-sized houses. Purchasing a less-expensive home essentially means that your monthly mortgage payments will also be low. In case you are single or are a young professional who wants to start a family, that additional amount can act as a massive boost to your monthly budget.
Remember that although your monthly mortgage payment would be lower, you will still be required to pay other maintenance as well as upkeep fees. The most common one is maintenance fee, which is something every condo owner in a development contributes to. This essentially helps in the funding of the upkeep of the building or property along with aspects such as landscaping, a pool or gym as well as other amenities.
A Smaller Down Payment
Along the same line, purchasing a home that is less expensive essentially means that you can place a smaller down payment on it upon closing the sale. In several cases you may be required to put in some percentage, which is usually 20 percent down in order to avoid purchasing private mortgage insurance. When you are required to commit less in your down payment, you are left with more money in the bank for other purposes.
An Excellent Future Investment Property
Remember that once you are set to upgrade and shift into a larger house, a condo can be kept as a rental or investment property. After your mortgage is paid off, you are merely responsible to pay the monthly maintenance fees. Hence, if you are at a place where you can rent the condo out to a tenant, you can enjoy amazing cash flow that can assist in paying for your new home or to fund other activities.
The reasons listed above are just some of the many reasons why you may opt for a condo if you are a first-time buyer. If you want to learn more about your mortgage options, get in touch with us today.
Contact Charissa Realty for all your real estate needs.