Condos are smaller and form part of a building or complex. Houses are situated in neighborhoods, and your walls and yard are your own.
Perhaps this is the most straightforward illustration of the difference between a condo and a house. But how do these two really differ? Let us break it down further.
Homeowners buy the house and the land it sits on, whereas condo ownership includes the living space inside the condo unit and a portion of the building’s common areas.
Neighborhoods of detached single-family homes tend to create distance between neighbors. Condos are much closer to each other in this regard. While there may be one house per acre in a neighborhood, there can be 20 or 30 units per parcel in a condominium.
As to living arrangements, condos have specific limits on who and how many people can live in a unit. If your brother and sister-in-law and their two kids need a place to live for a while, your best option is to have them stay in a house.
Moreover, living in a condo can mean that what you do for a living can be regulated by building policies. For example, if you want to start a plumbing business, consider bringing it to a neighborhood. Doing it in a condo may be subject to regulations due to limited and closed space.
Furthermore, when it comes to easy maintenance, condos take the crown for convenience and reliability. Living in a house means you are responsible for all of the upkeep and repair costs, including any outside space that requires regular preservation.
These are just some of the distinctions between a house and a condo, with advantages and disadvantages for each housing type. It’s a good thing that you can choose which one works best for you. Lifestyle and cost can help determine whether you need a single-family house or a condo.
It also matters that you consider your future goals. If you plan to move out someday and put the property up for sale, it helps to consider its sellability and appraisal. Likewise, if you intend to rent out your place, it’s best to be aware of the rental trends for both types of units, so you will have a clear picture of what to expect in terms of profitability.
You may find that each housing type provides benefits at different times in your life. For example, when you have children, owning a house may be the best option. But when you’re older, and the kids are grown up and gone, a condo may provide a better experience.
Depending on your budget and other important considerations, each comes with its attributes and features. The bottom line is, neither of the two housing types is better than the other – there’s no one-size-fits-all here. It all comes down to where you are in life and what your preferences are.
The infographic below presents the pros and cons of investing in a condo versus a house. It also contains tips that can guide you in deciding which property type to invest in.