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Buying First Home: 5 Reasons You Should Buy A Condo | INSIDE REAL ESTATE SHOW 043

in this episode for homebuyers we talk

about the five reasons why maybe you

shouldn't buy a home be sure buy a condo

this is episode three inside

realistic show with me

Darren Persinger your host of the inside

real estate show also co-founder a

person or group real estate the inside

real estate show is where we give you

the insight behind the information

giving you the analysis and the advice

so that you can make smart home buying

home selling and real estate investing

decisions welcome to episode 43 so if

this is your first time listening here's

how we do this I usually have a number

for you a number of the days what we

call it sometimes we do a letter of the

day we do a little bit of housekeeping

and then we get into the main topic and

the main topic is for home buyers today

and it has nothing to do with buying a

home it's about buying a condo because

so many people think of buying a home as

that single-family home that that

single-family home that has the front

yard the back yard the white picket

fence and in the reality that's just

that's not the first home for many many

people and so I want to share with you

the five reasons why maybe you should

consider a condo if you've never thought

about it before why a condo 5 reasons

why a condo is a good first home

purchase before we get into that let's

do the number of the day

the number of the day 13.1 and it's a

percentage 13.1 is the average interest

rate on a credit card that is carrying a

balance 13.1% so I went did some quick

math on that if you go to a credit card

calculator on the Federal Reserve

website what I did is I took a ten

thousand dollar credit card balance

which is actually below the average

credit card balance if one is being

carried and I put in 13.1% and if you

only make the minimum payment each time

it would take you 27 years to pay off

that $10,000 and would end up costing

you twenty one thousand two hundred and

seventy one dollars in total 27 years to

pay it off and yet people talk about the

reason why they don't want to buy a home

they can't commit to buying a home is

because of the 30-year mortgage and yet

how many people are walking around

making minimum payments on a credit card

balance that in reality could take them

up to 27 years to pay off let's do some

housekeeping housekeeping since this

episode is a topic specifically for home

buyers I don't want to pass up this

opportunity to promote a book that I

wrote home buying made easy if you're in

the local area where we sell real estate

in the Snohomish Skagit King County area

if you go to home buying made easy

book.com

so this title contribute to jus and then

just add book onto the end of it you can

request a free copy of this for yourself

we'll even pay the shipping and handling

and get that sent out to you alright

let's get into this main topic

let's talk about buying a condo as an

alternative as your first home purchase

of being a single-family home as I

mentioned earlier so many people think

of a single-family home as the home as a

home purchase a lot of people whether

they don't think about a condo or

possibly townhome as a potential

purchase or if maybe they've thought

about it and completely dismissed it

without giving it a lot of thought

because so many people have that

romantic idea that the first home

purchase has to have that front yard

that back yard the white picket fence

the place where the kids and the dog can

run around and half the yard and you can

look out your window and you see all

that going on

and that's a beautiful wonderful

romantic idea but doesn't always work

out that way and it doesn't have to be

that way you can get into your first

home purchase by looking at a condo and

have five reasons why you might want to

look at a condo as that first purchase

so number one a condo has the benefit of

lower maintenance so whether you're busy

because of your career or your social

life or you're someone who likes to

travel that you're going to be gone for

a lot of weekends because you're doing

this or that or you're going to be gone

for long experience extended periods of

time because of your work involves

travel which minded for a long time I

was speaking around the country 30 to 40

times a year it would have been very

hard to maintain the yard maintenance

and do everything involved with that

especially if I lived back in Wisconsin

where we had winters and shovelling the

sidewalks in the driveway during the

winter all the time so lower maintenance

is a huge benefit of owning a condo

because that's built into your monthly

condo association dues also a lot of

those dues those a condo association

dues cover things like the outside

maintenance of the condo the roof of it

so you don't have to worry set about

setting money aside to take care of

those maintenance issues that are going

to come up

the single-family house your association

is doing that for you with the monthly

dues that your paint so there is some

value in what you're paying for those

dues

benefit number two I've heard a lot of

people complain about living in

apartments not really liking their

neighbors or or not even knowing who

their neighbors are because people are

constantly coming and going and I could

see the the truth in that that apartment

dwelling does not allow for a lot of

community building I live in a few

apartment communities before where I

know that the property management teams

working really hard to build some

community and have community days and

things to do around there but it's hard

when people are so transient in that

community so one of the other benefits

of condo / townhome living is you know

those people are going to be there for a

while and there just seems to be a

little bit of that pride of ownership

and people want to get to know their

neighbors because if there's something

going on they want to be able to have an

open communication dialogue or at least

have you know a general respect for each

other because you own that place and I

own this place and then we own all of

that together because that's kind of

what a condo actually has common areas

that you own so there's value in the

community of just who your neighbors are

number three the amenities that you

could potentially get with a condo or

townhome community far exceed what

you're going to get with a single-family

now there's always a cost to that

there's a correlation to the costs and

the amenities that you're going to get

so the the better the amenities most

likely the higher you're going to be

paying in your association dues but

there's a lot of potential to end up

having a pool a fitness room a theater

room walking trails tennis courts

basketball courts all sorts of different

things like that that you know unless

you pie in a single-family home that is

a mansion you're not getting those

things as part of your estate when

you're buying into

a condo community and that's built into

your association dues fairly decent

chance that you're going to end up with

or you can focus on a community that has

those things if having a pool and a hot

tub and a fitness area and things like

that are important to you you can

definitely find it out there so you're

when you're buying a condo way better

chance that you're going to get some

more interesting and amenities with that

than you would if you're buying a

single-family home number four and I'm

actually going to kind of combine four

and five here and to connect them so

number four I would say is that it's an

investment with benefits so if I was to

compare single-family homes

to condos over time I'm probably going

to see a higher appreciation rate on

single family homes versus condos condos

are still going to appreciate but most

likely not

as much as a single-family home so

there's an investment benefit to that

versus just continuing to pay rent where

the only thing that's increasing with

when you're renting is your rent so you

have Rick continue an increase or buy a

condo and have it appreciate slightly or

single-family a little bit more now one

of the benefits I would say of condo

buying is that you're going to be able

to get a little bit better location if

you're really committed to having that

yard with the fence and that whole deal

that single-family home lifestyle you're

probably going to have to go a little

bit further away from a downtown area

from where there's more interesting

things going on from your work from a

metro area but wherever it is that you

most likely work or socialize in or

where the best entertainment stuff the

best restaurants the best place to go

for drinks the best things to do go have

fun

single-family home is going to be

further away from that for the same

type of money then your condo which I

would connect to number five is you just

get more for your money with a condo or

a townhome generally when buying a condo

you're going to get now this isn't the

case in every market and every area but

generally you're going to get a lower

price per square foot when you're buying

a condo versus a single-family home so

when you combine all of those things of

being able to get a little bit more for

your money probably a better location

which includes now that you have

appreciation instead of just paying out

rent all the time the the sense of

community have actually known who your

neighbors are there's a little bit of

stability there and not having to worry

so much about maintenance of it

impacting other parts of your lifestyle

view being busy career driven or liking

to travel and just being away from your

home a little bit more often not

worrying about the upkeep of the yard or

the maintenance of the outside anything

like that those are the benefits of

looking at a condo and if you've never

thought about a condo before or you

thought about it for a split second and

you dismissed it because you thought of

it too much like apartment living and

that's what you're trying to get away

from I encourage you to hopefully this

influential a little bit of being able

to look at this from a fresh perspective

of going it might be a little bit

similar to apartment living but there's

a lot of other benefits even if it feels

like it there's a lot of benefits to

having a condo be your first home

purchase and with that I would remind

you that home is what you make it so

make it someplace you love