Benefits Of Owning A Condominium

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You just graduated Grad school and landed your first job at a fortunate 500 company. Now it’s time for you to make some real life investments. You decided that you wanted to purchase your first property instead of renting. Renting can be a great option but will not be a great investment, nonetheless owning a condominium is more of an affordable route if wanting to own a property. In my research paper I will discussing the benefits of owning a condominium as well as becoming finically ready to make your first purchase. Condominium is commonly known as a condo; it is a real estate that is divided into seven or more dividends. Often times condominium is mistaken for apartment building because of its structure. There are in fact, condominium that are single family structured, but are located in a gated community. Condominiums range from studios, villas, flats to even a penthouse. Each section is privately owned by an individual. Many people prefer to own a condominium because in the long run its cheaper than renting an apartment. In some cases, when doing a price to rent ratio, you find that it makes more sense to own a property. A price to rent ratio is calculated as the ratio of home prices to annual rental rates divided by twelve months. This helps you find out the rational decision to make. Nevertheless, Condominium is often cheaper then renting an apartment because the money that you are using to pay your mortgage is an investment towards owning a property. You are also refunded back the money used to pay your mortgage as a tax refund. Each year your debt is being reduced and you do not have to worry about your mortgage increasing. When paying rent you are always paying more each year for an apartment you will never own. Studies ... ... middle of paper ... ...a balance of $80,000 left to pay for the purchase price. Most first time buyers need a mortgage to finance their condo purchase. In addition, the size of your down payment is dependable on the loan that is taken out. There are different types of loans that you can use but although there are many you might not qualify for all. Using a conventional loan, you are required to put down a 20% deposit. If you put down a percent less the 15 – 20 you will suffer with paying higher interest rate. The larger the down payment the smaller the mortgage. The smaller the mortgage the faster it is for you to pay off your condominium. In conclusion, condominiums are great if you want to purchase your first property. It comes with amenities as well as utility coverage. The mortgage is given back to you each year as a tax refund. You can rent your condominium because it belongs to you.

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