House with Pool

Both condo owners and apartment owners contribute to the development of real estate. However, most would like to know the pros and cons of belonging to one of these two property types. These two types sound similar, but they are completely different concepts that provide different benefits and have a definite presence in the Indian real estate market. If there are plans to own either a condo or an apartment, then it is crucial to understand what the differences are.

What this blog will do it is to look at condos and apartments enabling you to make a more informed decision.

What is a Condo?

condo is a dwelling type that comprises of many separate living quarters in a single structure. This type of houses has common facilities like grounds, swimming pools, and fitness gyms, but people do not own these collectively as rights to these amenities are not included in condo ownership. The unit in which they reside is the only property owned in a condo.

With condos, these owners enjoy facilities such as the landscaped areas, the clubhouse, and the greater security of the parking area. With the increased sales of condominiums in recent times, they have become one of the best investment opportunities in the Indian real estate market.

What is an Apartment?

An apartment refers to a single dwelling unit that is part of a large residential building that is generally rented. Apartments can be privately owned or run by a real estate company that leases it out for a defined period of time.

Apartments can be either furnished or unfurnished. Some may possess more than one bedroom and have space designs referred to as 1 BHK or 2 BHK etc. The desire to rent for a while without buying, makes these sorts of living spaces ideal for many people.

Condo vs Apartment: Key Differences

Having defined what is a condo and also what is an apartment let us now highlight the main differences between the nut shells.

  1. Ownership Structure

Condos: A condo owner has the private property right of their permanent and indivisible unit but will jointly own and have rights to any communal facilities such as elevators, front rooms, and so forth. By buying a condo, the unit owners automatically become members of the Home Owner’s Association (HOA) charged with the management of the joint facilities.

Apartments: A landlord or a management company who rents out tenement houses owns an apartment, whereas tenants are inveterate to there. Renters will never receive property taxes or HOA, but rather, certain norms that are specified in a lease by the owner.

  1. Maintenance and Property Repairs

Condos: Every owner must also take charge of the maintenance and repairs of their unit. Any spaces that are common to residents are looked after by the HOA and managed through the collection of periodically monthly dues that go toward the maintenance of the communal areas.

Apartments: The management, including the landlord, is the one responsible for major repairs and maintenance in an apartment. If there are any issues on the premises, tenants are the ones to inform the owner and have the repairs done.

  1. Financial Aspects

Condos: One can agree that there will always be reasonable sums to spend when purchasing a condo such as the down payment, some closing costs, and HOA fees. However, when one buys a condo, it allows for a home equity loan in the future which is quite beneficial when looking to make long terms returns profits on investments.

Apartments: In an apartment, one can just put down a security deposit together with the rent. They don’t have to bid farewell to taxes for owning property, or repairs but in turn, are unable to reap the benefits that come with owning a home, in other words, equity growth.

Benefits of Owning an Apartment

  1. Affordable: People who are unable to set aside resources to pay for down payment in purchasing a home pay for the apartment by rent.
  2. Adjustability: An apartment is easier to rent. You are able to relocate quickly without any limitations that come with owning a home, making it beneficial for those that travel a lot for work.

Benefits of Renting an Apartment for Lease in 2023

Low Maintenance: Tenants don’t have to worry about costly repairs and maintenance, as these responsibilities fall within the landlord’s purview.

Convenience: Apartments are also usually within the city’s vicinity. This makes it comfortable for the tenant to travel to restaurants or shopping malls and use public transport.

Benefits of Staying in a Condo

The following are the advantages associated with living in a condo:

Homeownership: The value of the property that has been invested in appreciates in the years to come, allowing condo owners to increase the return on investment.

Tax Benefits: There are taxes that those renting the property may not be eligible for and those who own condos may qualify for such as tax deductions associated with mortgage interests.

Less Maintenance: The HOA manages common grounds, so condo owners have minimal hands-on involvement when utilizing the amenities.

Accessibility: With the ease of getting to parks and shopping centers as well as using public transport, so you don’t have any commutation issues on a day-to-day basis.

Conclusion

The selection should be based on a combination of how much the buyer has in terms of purchasing a condo, how much they earn, and if they are stable enough to think of such long-term property. There are currently plenty of people looking and renting apartments because they are only required to pay a somewhat smaller amount as a deposit. However, buying a condo allows the owner to acquire a lot of value from the investment over time through the building equity of the home.

Should you require any further help in terms of picking the right property option, get in contact with Dream Location who can provide relevant recommendations such as condos, apartments and other properties in real estate markets.