Condos: Is this the right time to buy?

If you’re currently renting or are looking to downgrade from a large home, this may be the perfect time to purchase a condo. While condominium units were once not treated with the same level or respect as single family homes, the real estate market and people’s perceptions have changed. Condos grow in value just like homes and purchasing one now, especially while price are low, makes a lot of sense.

The number one reason to buy a condo instead of continuing to rent is saving on rent. If you’re paying $1500 in rent right now, you can expect for that rent amount to creep slowly toward $1800 over the next several years. Rental management companies are notorious for incrementally increasing a rental rate higher and higher. In the next five years, you can expect to pay several hundred dollars more for the same apartment or rental home.

However, if you purchase a condo, your mortgage payment will stay the same for the long run. You won’t have to worry about coming up with more money for rent or adjusting your budget so that you can afford the same place you’ve been living in. Having a stable housing payment can be a relief as rental prices go on the rise.

If you decide to purchase a condo, make sure to live in it for at least two years. When you live in it for 48 months or longer, you’ll see the financial benefits of owning rather than renting. During that time, rental rates will have increased at least twice and you’ll be saving money by owning your own condo. Not to mention during that time you’ll also have the added benefit of increasing your credit score with on time monthly mortgage payments.

Before you jump into the purchase of your condo, there is an important consideration you need to keep in mind.

As a condo owner you’ll be working directly with the condo management company. These companies take care of the grounds and handle all of the exterior needs of the condo buildings. Be sure to do some research on the condo management company. Find out whether they run any additional condo complexes. Drive through those complexes, in addition to the one you’ll potentially be living in, and see how they’ve taken care of the grounds. Evaluate how they are doing so you can get a good sense of how responsive they are to issues that may arise. For example, a well manicured grounds, working parking lot lights and signs that are in good shape are all signs of a good condo management company.

You can also ask around the condo complex and get the scoop on what it is like to live in the community. The residents can give you a feel for how well the condo management company is doing. Looking up the company in the Better Business Bureau is also a good measure of security.

If the housing market hasn’t quite rebounded in your area, a condo can be a good choice. Research the management company carefully and you’ll be able to make a smart purchase.

About the Author:
Joe Cline writes articles for Austin Texas Realtor. Other articles written by the author related to Cedar Park real estate and Austin real estate can be found on the net.