Buying A Condo Vs. Single Family Home – Which One Is Better?
Are you weighing buying a condo vs. buying a single family home in Orange County but you can’t decide which is the better option right now? You’re not alone. This can be a difficult question to ask but it’s not impossible to get a clear answer once you weigh the positives and minuses of each option.
Buying a Condo
When you purchase a condo you will be paying for the dwelling (condo) and the land underneath your building. Although a condo may seem more convenient than a home it’s best to evaluate your financial situation and determine if a condo in Orange County will be a good fit for your family during this time in your life. Condo’s, many times, will have more costs to deal with compared to homes since you will be responsible for paying Home Owners Association (HOA) fees, on a monthly or annual basis (depending on your condo). These fees will go towards upkeep of the condo’s exterior as well as the maintenance of landscaping and any amenities in common areas that you may enjoy at the condo.
You will be responsible for upkeep of the interior of the property so it’s best to make sure that you hire a qualified inspector to thoroughly check gas, water and electricity to confirm that everything inside the dwelling works before you purchase it.
Buying a Single Family Home
By purchasing a single family home you are buying the dwelling (home) and also land underneath it, this means that you will be responsible for the interior and exterior upkeep of the home, especially if something happens or breaks, like a water line for example, you will have to pay the bill to fix it compared to a condo where most maintenance issues will be covered by the HOA.
Cash On Cash Investment Return
Most single family homes will often have a cash on cash return that’s lower than condos (3 to 5 percent compared to 4 to 7 percent) so it’s always important to determine if purchasing a condo vs. a single family home will make sense for you financially especially if you’re planning on purchasing either for investment purposes.
For more information on purchasing a condo vs. single family home contact Fred Sed & Associates today by calling us at (949) 272-0125.