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Two factors play a major role in choosing a property: personal preference and financial situation. Some people prefer an apartment in a condominium, while others need a spacious private home.
The following factors should be taken into consideration when buying real estate:
- credit terms;
- mortgage payments;
- age of the property;
- climate;
- location.
And, of course, it is worth deciding what to choose: a house or an apartment?
House and apartment: what’s the difference
A house is a separate building, not connected with other buildings. An apartment is a separate unit within a housing estate. In the U.S., an apartment is also called a condo. An apartment refers to a dwelling which is rented out, usually in a large apartment building. But an apartment in a condominium (condo) is owned by the owner.
To put it simply, the apartment owner only pays the rent, and the condo owner pays all costs related to property maintenance.
Differences in types of housing
To compare the two types of real estate, you need to analyze them according to several factors:
Expenses. Mortgage payments for a house are usually higher than for an apartment. In addition, private home maintenance and utilities are also more expensive. Annually, maintaining a single-family home typically costs about 1 percent of the home’s value or purchase price.
Location. People who have been able to work remotely have increasingly moved away from metropolitan areas to the suburbs and provinces. Demand for private homes has increased markedly because most apartments are located precisely in the cities, in high-rise condominiums.
Lifestyle. Young people with an active lifestyle previously chose big cities with their wide range of entertainment. But the pandemic changed a lot, with picnics and nature walks remaining the only available entertainment during the lockdown. When moving, it’s important to focus on your lifestyle: bustling urban or quiet and secluded.
Maintenance fees and amenities. When buying a home, owners do not need to ask permission from the housing association to make household repairs. In an apartment, this permission is mandatory. Unless the homeowners association sets rules and regulations in your neighborhood, buying a home assumes you can do whatever you want with the entire property.
Many condominiums have amenities for residents such as a fitness center, pool, lounge area, tennis courts, landscaping services and more.
Family size. Large families are more comfortable in the house than in the apartment, and the spacious yard will be an excellent playground for children.
Cost. According to the U.S. Census Bureau, apartment prices in urban markets rose 15 percent in the past three months. Single-family homes are now selling in the U.S. with a 23% increase over the past year.
Buying a home will be a better investment because once the property is improved and upgraded, it will fetch more for it than what was previously invested. Apartments can be more difficult to sell.
