What Is the Ideal Age and Salary When Buying a Condominium?
Homeownership can be an excellent way to increase your net worth. However, you don’t want to purchase a home before you’re financially ready because a mortgage payment, property taxes, homeowner’s insurance, and repairs can quickly make you house-poor. If you’re not yet prepared for a single-family home, consider buying a condominium and upgrading when you’re more financially secure.
Advantages of Buying a Condominium
Buying a condominium offers several benefits.
Lower Price
The most significant advantage of buying a condominium is that it is usually more affordable than purchasing a single-family home. Therefore, condos are perfect for young people starting their adult lives and older people looking to downsize after raising a family. Condos are also suitable for childless couples or couples who have young children.
Locations in the Heart of the City
Another advantage is that, unlike single-family homes, which tend to be in the suburbs and the country, condos frequently are in the heart of the city. For instance, The Continuum Condo is within easy walking distance of public transportation, restaurants, shopping malls, and schools for those with children. While finding a house in the center of the city is difficult unless you have a large salary, that’s not the case with condos.
No Yard Responsibilities
Finally, if you’re a busy working professional, you might not have time for lawn maintenance. After all, mowing the lawn, raking leaves, shoveling snow, and doing other yard work can require several hours a week. When you own a condo, you don’t have to worry about that because the homeowner’s association maintains the facilities, so you don’t have to.
What Is the Ideal Age and Salary When Buying a Condominium?
There is no definitive answer to when is the ideal age and salary when buying a condominium. Instead, you should meet a few requirements before purchasing a condo:
Have 20 Percent Down
If you can pay 20 percent of the purchase price as a down payment, you will avoid paying private mortgage insurance. In addition, having that much down is usually a good indication that you are financially ready to own property and aren’t overextending yourself.
Have a Strong Credit Score
The stronger your credit score, the lower your mortgage interest. A credit score of 700 or better is ideal when buying a condo. If your credit is lower and you have a higher mortgage interest rate, you will pay tens of thousands of dollars more in interest over the life of your loan than someone who gets a better rate because they have a higher credit score.
Plan to Stay Three Years or More
Finally, if you plan to stay in the condo for at least three years and have a 20 percent down payment and good credit, it’s probably a good time for you to purchase. If you stay less than three years, you’ll likely lose money because you’ll have to pay realtor and other fees when you buy and sell. However, the property won’t have much time to appreciate to offset those costs.
Final Thoughts
Buying any property is a commitment, but if you want to live in the center of the city and are financially ready, purchasing a condo may be the right choice for you.
