If you’re planning on purchasing property and you’ve narrowed down your list to a condominium or apartment, you may want to know what are the differences between condos and apartments in the first place. While they both may look the same on the outside, there are many differences to take into consideration. One of the differences is that apartments are usually owned by a property management company or one owner and then rented out individually. Alternatively, every unit in a condo has its own owner.
As with all properties, there are certain advantages and disadvantages to owning an apartment. Some of the advantages include flexibility because you have the option of choosing to keep it for short term or long a period of time. This is especially if you’re considering that renting and not buying. When it comes to maintenance, and you are renting an apartment, if something is broken the responsibilities on the owner to have it fixed. It costs less to rent an apartment than it does to rent a luxury condos.
The disadvantages of renting or buying an apartment are that you are giving your money to the owner and you have no way of recouping it either now or in the future. Furthermore, you don’t receive the tax deductions that come along with the benefits of being a condominium owner.
When it comes to condominiums, it’s considerably cheaper to purchase a condo than it is to purchase a freestanding house. Your mortgage payments are also not likely to increase after you take out a mortgage and therefore you can plan accordingly. Condos also offer the benefits of having the outside of the condominium as well as all luxury facilities maintained by the building management or association. Condo owners also have access to other benefits such as tax deductions and this includes mortgage interest, PMI deductions as well as property tax.
The disadvantages of owning a condo are not as severe as that of owning an apartment. You will have to pay a homeowners association fee and all this means is that you are positioning yourself to become a business partner in that shared community and therefore you would have to pay the homeowners fee on a monthly basis. Condos don’t sell as quickly as apartments and other properties as well, so if you are considering selling your property in a hurry, this may present a challenge in the future. Ultimately, the benefits of owning a luxury condo in Singapore far outweigh the disadvantages of owning one. So make the smart choice and invest in a condo of your choice.