If you are thinking of moving or are looking for a home in Denver right now, there is a good chance you may have wondered this question: What is the difference between a condo and an apartment?
Well, the immediate answer is quite simple, ownership.
Apartments are typically owned by property management companies, leasing companies, or to an individual who owns the building or a series of units; whereas a condo is owned by an individual and managed under the Homeowners Association (HOA).
Ownership is a huge factor in the purchasing decision for buyers. In our previous post about buying vs. renting we went over how buying a home or condo is a better and smarter financial investment than renting.
Benefits of Condo Living
One major attractive feature regarding condo living is that there is significantly less maintenance required than there is for a typical single family home. With an HOA, you will still be responsible for any interior work to your home, but all exterior and general property responsibilities will be off of your plate!
When another blizzard rolls through Denver you will not be left with the obligation to shovel the snow from the sidewalk before you have to hustle to work in the morning. And when weeds start to grow and landscaping is necessary you won’t be the one doing the dirty work! And when the paint begins to chip and a new layer is required you won’t have to look up where the nearest Home Depot is located. Oh, and when the next hail storm rolls through… you can just say, “Thank you, HOA, for fixing the damage to the roof.”.
2. Price + Location = Value
The Denver housing market continues to demonstrate a rising trend, with a predicted appreciation rate of 3.6% from now to 2020, the affordability of condos in popular Denver neighborhoods is significant compared to the prices of single-family homes in the same areas.
To break it down, this is because the land value increases as the proximity to the center of the city increases. Condos are often smaller than traditional homes, and there is no ownership of land; however, condos also cost significantly less and are positioned in ideal locations. Therefore, with the location considered, there is an extraordinary value of condo ownership. Because you would have to be a millionaire to own a single family home in that same location. Or, you may be lucky enough to find a single family home in the location you desire within your price range, but it’s almost a guarantee that you won’t be proud of the quality or condition of the home.
Denver Real Estate Market Forecast
The question everyone wants to know when they are purchasing a home (whether it is a single family home, townhome, or a condo) is, ‘How much will my home be worth when I potentially want to sell?’.
It may be a long thought, but thinking ahead will help you make a better, more informed decision. And the fact maintains to be true in 2019 – Investing in real estate is still the most effective method for generating wealth, and condos are no exception.
The traditional belief that condos appreciate less than single family homes has been proven false over the last few years. The reason condos are appreciating at a heightened rate is because there is also an increasing demand to be closer to popular attractions, work, and public transportation.
Buying a condo is an attainable investment in your future. The real estate market fluctuates and is very dependent upon a lot of other factors; however, it still makes sense to buy rather than rent in this 2019 Denver real estate market. And that holds true even if you are choosing between a condo, townhome, or single family home.
4. Relative location to the city
Here’s a phrase you’ve probably heard before, “LOCATION, LOCATION, LOCATION”. Location is everything when it comes to real estate, and it is the primary value proposition of buying a condo.
Condos are typically recognized for their close proximity to city life and all of the exciting features that come with it; including easy access to public transportation, walkability to shops, restaurants, and parks, and the general ambiance of being near exciting events and nightlife.
Notice that when you drive about an hour south of Denver you suddenly don’t see any tall highrises? That is because there is no desire for condos there and that the demand for condo living is closely related to the desire for a fun, urban lifestyle.
One substantial perk of owning a condo is that you don’t have to rely on your car – because even without a car there are many ways to get around. The close proximity to public transportation and popular destinations decreases the dependence of cars, which decreases the expenses involved with car reliance – gas, maintenance, and insurance for instance. The money saved could then be allocated towards enjoying and experiencing the city.
Recent studies show that millennials and young professionals value proximity over property, and strongly prefer a shorter commute to work than a larger home. This explains the growing demand for condos within the entry-level buying pool.
One of our very own condo developments Observatory Flats, is located only 1 block away from Denver University. You won’t find many options that offer this level of quality for price and location.
More aspects of condos vs traditional real estate are the various amenities that are often found in condominiums. Many condo communities offer great amenities that may enhance lifestyles and add considerable value to the homes. Typically, these amenities include fitness centers, pools, security, parking, and community spaces.
In Denver particular, there is a growing trend of community rooftop patios!
The biggest benefit of owning a condo is ownership.
The decision to purchase a home is really about making the decision to begin investing in your future and start generating wealth. If you are a first-time home buyer and don’t have a ton of money saved up, then Condos are an optimal and attainable option for you! Finally, homeownership enables the freedom to do whatever YOU want with YOUR own home! So, if you really do not like the color of the walls, or have a sudden inspiration to mount your TV to the ceiling, do not stress… You can, you own the place.