The COVID pandemic has been difficult for everyone, millennials included. Most millennials have yet to fully reach financial security comparable with what older generations like Gen Xers and baby boomers enjoy. As a result, when the pandemic hit, millennials struggled money-wise. Many of them had to return home and live with their parents.
Just how many are many, you might ask. According to a survey conducted by TD Ameritrade, where some 2000 young adults between 24 and 29 years of age participated, 39 percent of respondents answered they had already moved back to their parents’ house or planned to do so. That means that if you belong to this demographic and currently sleep in your parent’s basement, there’s nothing to be ashamed about.
However, ideally, it’s a temporary arrangement. As soon as things go back to normal, you must be back on your feet, fixing your finances. And once you have bounced back financially, it’s time to explore the housing options at your disposal.
You may choose to purchase a condo unit. Here are the pros and cons of this option.
The most obvious advantage of buying a condo unit is the amenities you’ll get to enjoy. Most of these housing communities come with their own swimming pool, clubhouse, and fitness center, among other perks. Typically you will chip in on homeowner’s association master insurance to pay for the maintenance of these shared spaces.
Whatever’s not covered by your HOA’s master insurance, you can supplement with a loss assessment coverage. That’s a small price to pay for the privilege of enjoying these amenities.
Another advantage of condo living is security. Most of these residential buildings have security staff 24/7. They are equipped with CCTV cameras in key areas. You do not have to worry about burglary or other safety risks.
Despite these amenities and privileges, condo units are more affordable compared with single-family homes. These buildings are often located in city centers hence access to everything you need will be easy.
When you buy a condo unit, you’re purchasing space within a community. No land comes with the deed of sale. This makes it more difficult for condo owners to resell their units. After all, most of those in the real estate market want to buy a house with land ownership.
In terms of appreciation, condo units lag behind single-family homes. While you can still enjoy a significant markup from your condo property once you decide to sell, the deal might not be as lucrative as selling a house on a piece of land.
Another potential disadvantage is the lack of privacy. You will be living near other condo dwellers. If you’re the type who prefers a sense of independence, condo living, which is built upon the idea of planned communities, might not be the best arrangement for you.
Rules apply, given that you are part of a community. For instance, some condominiums do not allow pets inside. Or even restrict visitors during specific hours. If you choose to update your unit by installing a vertical garden in your verandah, for instance, you might need to ask for the management’s thumbs up first.
As with everything in life, there are two sides to the condo story. It’s up for you to decide which side sounds more convincing. The important thing is you are looking for a place that you can one day call your own. And that’s a good enough start. Despite what they say about millennials not quite keen on homeownership, you beg to differ. And we are rooting for you.