Condo vs. Apartment: Which is Best For You?
If you’re thinking about investing in real estate, then you might be wondering about which will be the best option: an apartment or a condo. There’s been a constant debate between homeowners for years about whether it is good to invest in a condo or an apartment.
Before you invest in any one of them, it is crucial to know that ownership of both properties comes with its own pros and cons. Choosing between them totally depends on your lifestyle, preferences, and, of course, your financial condition.
If you’re confused between a condo and an apartment, then fear not! In this article, we’ll discuss the pros and cons of both a condo and an apartment, helping you determine which might be the right choice for you. So, let’s begin:
What is a Condominium?
A condominium, often called a condo, is a unique type of residential property. When you own a condo, you actually own your living space, but you also share some areas, like hallways, elevators, pools, and gyms, with your neighbors who live in the same building.
Condo ownership typically comes with monthly maintenance fees to cover the upkeep of shared amenities and common spaces. Condos are known for offering a sense of community and often come with added amenities, making them an appealing housing option for those seeking both private ownership and shared facilities.
What is an Apartment?
An apartment is a self-contained living space that you own within a multi-unit residential building or complex. When you own an apartment, you’ll have full ownership rights to their individual units, which can range from compact studios to luxurious multi-bedroom layouts.
Unlike condominiums, where common areas are collectively owned, as an apartment owner, you typically do not share ownership of common spaces, which are maintained and managed by you or the management company.
Owning an apartment provides the benefits of property ownership, such as the potential for long-term appreciation and the freedom to personalize one’s living space without the full responsibilities and costs associated with maintaining common areas.
Pros and Cons of a Condo and an Apartment
So, now you’ve understood what a condo and an apartment are, let’s discuss some pros and cons of them.
- Customization and Renovation
Condo: One of the biggest benefits of owning a condo is that you can modify it according to your preferences. You have the freedom to customize and renovate your condo and make it your own as per your interest. Invest in a condo only when you’re looking to create a unique and personalized living environment.
Apartment: Apartments generally offer less room for customization and renovation. If you’re renting out your apartment to tenants, you might not want them to make big changes. So, if you’re someone who really wants to do major renovations to your living space, owning an apartment might not be the best choice for you.
- Investment Potential
Condo: Condos have the potential for appreciation in value, especially if they’re located in desirable areas like savanna, Kuala Lumpur, and other areas. You can also rent them out to make extra money, which means you can get two kinds of investments: the value of the property going up and the rent you get from it.
Apartment: Apartments generally don’t appreciate in value as compared to condos. Condos can increase over time, but apartments tend to lag behind in terms of appreciation, especially in less desirable or oversaturated rental markets.
- Community and Privacy
Condo: Condos often strike a balance between privacy and community. While residents have their private units, there is often a strong sense of community within the building. Condo owners may have opportunities to interact with neighbors through association meetings, social events, and shared facilities.
Apartment: Apartments typically offer more privacy, as you’re living in a self-contained unit with limited interaction with neighbors. While some apartment complexes promote a sense of community through shared spaces, it is generally less pronounced compared to condos.
- Monthly Costs
Condo: Condo owners must budget for several expenses, including monthly maintenance fees, property taxes, homeowner’s insurance, and, if applicable, mortgage payments. The monthly cost can be substantial if you own high-end condos.
Apartment: Owning an apartment comes with monthly costs like mortgage payments, property taxes, homeowner’s insurance, and, in some cases, maintenance fees. These expenses can vary widely depending on the location, size, and condition of the apartment, impacting your overall budget and financial stability.
So, which is best for you: a condo or an apartment?
If you can comfortably pay the monthly bills and plan to invest for a long time, owning a condo might be a good choice.
On the other hand, if you prefer having more privacy and flexibility, then it is wise to invest in an apartment.