Those who own condos get many of the same tax benefits as those who own their own homes. The annual interest paid on a mortgage on a condo, for instance, is tax deductible. When you first purchase a property, this represents a sizeable amount, as more of your mortgage goes to interest than to principal. You can also take out a home equity loan or refinance when you own this type of property, and interest on these loans is also deductible. You can deduct your annual property tax bill on condos just like traditional homes as well.
Appreciation of Property Value
Condos, if you choose well, can increase in value over time. More and more people are wanting to move into condos to enjoy the benefits of homeownership along with the benefits of living in these types of communities. In many instances, condos are worth more after a few years than they were when they were purchased.
One of the reasons many people choose to invest in condos is the benefit that comes from less maintenance. Often the association where the condos are located will handle exterior maintenance, landscaping, and lawn care for just the cost of the association dues each year. For those who do not enjoy these types of tasks or do not have the time or physical ability to tackle them, this can be an incredible benefit.
Interior maintenance may also be covered. If you are not a good do-it-yourselfer, you may love the peace of mind that comes from knowing a community handyman is available to fix a broken pipe.
Most condos are in carefully designed neighborhoods that are packed with amenities. You may find a swimming facility, playground, walking paths, meeting rooms, recreation center, or simply green open spaces in your condominium community. This can help you build friendships with your neighbors. Some communities even offer security and gates to help keep those who do not belong from getting inside. This can help your family feel more secure in your new home.
Stable Living Costs
If you are comparing owning a condo to renting, you may find that the living costs are more stable. You always have the risk of property taxes or homeowners insurance increasing when you own a condominium, but when you rent, you are at the mercy of your landlord. Rental costs can be quite a bit more unpredictable than the mortgage on a condominium. If you need to know a stable cost for your housing from month to month, then this is the way to go.
While condos do require you to pay fees for maintenance and security, you will usually find them to be cheaper than comparable single-family homes. This is largely due to the fact that you do not own the land where the condo sits. Instead, you own just the building. This cuts down on the cost and makes these excellent first homes for new homeowners.