When it comes to purchasing real estate, there's plenty to consider. For many young buyers and property investors, there's an extra question to ask: should I buy a condo or a home? Condos come with many perks, but also some drawbacks. New American Funding offers these tips on whether or not you should buy a condo. Read the blog post here: http://www.newamericanfunding.com/blog/post/2013/02/14/Pros-and-Cons-of-Buying-a-Condo.aspx

2. PROS
Location
Security
Maintenance
Amenities
CONS
No Land
Fees
Community Association
Resale Value

3. Pros of Buying a Condo
Location, Location, Location
Unlike finding the right neighborhood close to everything you want, you’re
much more likely to find a condo in a downtown area near everything
you’re looking for. You may struggle to find a condo near family attractions
and schools, but you’ll have an easier time being in walking distance to
other amenities.
If you’re specifically looking for a rental investment property, condos can
be incredibly attractive. Since they often share amenities with a
community and have private access to beaches, golf courses and more, a
condo can often beat a home in terms of location.

4. Pros of Buying a Condo
Security
Condominiums often come with some extra
piece of mind with security features like
buzzer, access cards or a guard service. While
some homes include roaming security paid
through HOA fees, having on-site security
can deter most criminal threats. Additionally,
having immediate neighbors provides an
extra sense of security.
For rental properties, condo security can be
especially attractive if you have long periods
where the unit is unoccupied.

5. Pros of Buying a Condo
Maintenance and Upkeep
Not everyone loves keeping up with yard work and fixing things around the
house, so a condo can make a great home for those who prefer to avoid
chores.
Landscaping and exterior upkeep is typically handled by professional staff,
and your building will most likely have a handyman onsite to fix anything
that breaks inside your unit.

6. Pros of Buying a Condo
Amenities
An in-ground pool and tennis court are not
within every homeowner’s financial grasp, but
if you pay for a pool or other amenities with a
hundred other co-owners, they are much
easier to afford.
Typical condo amenities and perks include
tennis courts, pools, gyms and more that you
will probably not find easy access to with a
house.

7. Cons of Buying a Condo
No Associated Land Ownership
One of the biggest perks of owning a home is the land it sits on. While a
condo has many conveniences and shared spaces for residents, you only
own your condo unit – not the land beneath it.

8. Cons of Buying a Condo
Fees
While the amenities of a condo are nice, don’t forget that someone has to
pay for all those nice things. (Hint: it’s you.) As a resident, you’ll be asked
to pay monthly dues or fees to support maintenance, repairs and even
new amenities. So don’t forget to use that pool every once in a while.
Of course, condos are not alone in charging fees for shared services and
amenities. Many first-time homebuyers are surprised to see their first call
for HOA fees – you just have to consider your fees before you buy.

9. Cons of Buying a Condo
Condo Association
We mentioned homeowners’ associations before, and you’ll have a similar
board at a condo. You might find that the average homeowner doesn’t
have the same experience as a property manager, leaving the association
weak or inefficient.
There are also rules you’ll have to follow called the Covenants, Conditions
and Restrictions. Typically these include restrictions on noise levels,
renovations, pet ownership, and can go as far as how you landscape your
porch/doorstep.

10. Cons of Buying a Condo
Resale Value
Condos are very sensitive to changes in the housing market, so they took a
hard hit during the housing bubble. Condos have begun to bounce back,
however, especially in tourist and vacation areas.
One thing to remember if you’re buying as an investment property is that
condos are often the first to suffer and the last to recover.

11. Financing Your Condo
Just like buying a home, there are a few types of loans available for
condos, but they may have some changes that you should be aware of if
you are buying a condo for the first time.
FHA Loans
FHA loans can be attractive for homebuyers, but there are special restrictions for
condos based on percent of the property used commercially, how much is owned
by a single investor and the number of units that are delinquent on payments.
Condos must be on HUD’s approved FHA list, which is available here.
Conventional Loans
Condo loans will vary from lender to lender, and they are stricter than home
loans. Lenders will look at a few important criteria, including:
• Complex, costly lawsuits against a condo. Lenders like to avoid risk.
• Your building and complex will need insurance against risks such as fire, hazard,
liability and flood insurance.
• Percentage of owners delinquent on payments or dues.

12. Buying Your Condo
Purchasing a condo, much like
purchasing a home, is a big
investment, and there are many
considerations to make in terms of
lifestyle and financing.
If a condo sounds like it may be
your best bet as a first time home
buyer, go for it! Just be sure to
research and find out as much as
you can about the condo unit you
are looking to purchase!

13. Pros and Cons of
Buying a Condo
Learn more about your home and condo
loan options at
www.NewAmericanFunding.com