What is the difference in an apartment and condo? How do you turn an apartment into a condo? Also, why would you? Thank you.
Peggy from Brawley, CA
Your question is like a riddle, When is a condo not an apartment, but an apartment is a condo? Anyway, here is a link for you.
An apartment is something you rent and a condo is something you buy. Sometimes condominiums have a porch or balcony. When I rented a condo it had no balcony or porch and my unit was located in one building with a total of four units.
This is how it is in the US anyway.
I was single for 17 years and rented the whole time and it was a mistake. I was afraid to make the jump to purchase something on my own with out a husband and I'm very sorry that I didn't buy a condo or town home.
It's a good investment and if you're single, it's good to have a place that you own, on your own. Some places will let you rent a condo and have the rent money go in escrow towards the deposit on purchase of the condo. I should have done that.
I wish I could tell you more about things like escrow, but I don't know enough to help. If you're interested, I would say to contact a local real estate agent and they will advise you.
In my area, many condos that are being sold are actually former apartments. The owners of the buildings decided that they would rather sell the living spaces, instead of renting them out. As a result, many apartments around here got turned into condos.
Apartments are converted to condos when the building owner realizes he can make more money selling condos than renting apartments or selling an apartment building.
Apartment-grade units have lower-grade appliances, flooring, fixtures and wall finishing. In the conversion, the appropriate upgrades are made.
Condo hotels and timeshares are not considered full-time residential units.
In some places, like NYC, apartment units are individually owned, but the method of ownership is usually a stock cooperative. If a condo is rented, it is still owned as a condominium ownership.
In CA, apartments are rental units and condos are purchased.
Both types of ownership have joint maintenance of the common property.
You can usually afford higher monthly payments when you own a unit because of the IRS tax deduction for the interest on the mortgage. You simply increase your withholding so you have more take-home pay each month.
You own a condo. There is usually condo association fees to cover outside maintenance of building, yard work, pool, if you have one, You usually pay insurance, plus all utilities.
An apartment you own no part of it and pay rent. You could pay all or some of the utilities, and have no equity in it. You might have a lease for a specific number of months. Rent can go up yearly if owner sees fit to do so. No payments for an apartment are tax deductible.
There are advantages and disadvantages to both. If buying a condo, remember location, and consider resale value.
I don't have to rent. I own my condo.
Basically, an apartment is rented and a condo is owned.
It is great to own if you have the means to do so. A condo is an easy way to enter into the world of homeownership. A "Homeowner's fee" is usually assessed to cover the maintenance of the exterior of the building and the surrounding property. The points you pay at closing and the interest you pay on the mortgage are generaly tax deductible.
Rent paid to a landlord is not tax deductible for the renter and is usually higher than the amount paid to own a condo.
First time buyers can also get Freddie Mac or Fannie Mae or some other type of assistance if they qualify. Check with a mortgage specialist in your area.
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