Many people consider downsizing once their kids have grown and left the home. They may think about investing in a smaller home, or they might start thinking about condo living. When they begin to entertain this thought then they have to decide whether it is better to buy the condo or merely rent it.
It isn’t just the retirees that think about condo living. Many young couples that are just starting out are also looking at condos as being a good starter home, and they too are faced with the same decision, as to whether they should buy or rent.
With the housing market being as strong as what it is, both age groups are finding that the housing prices are just too far out of their reach.
Then there is a third group that may be showing interest in condos, and that is those who are looking at it as an investment rather than venturing into something that may be more risky like the stock market.
No matter which group one may be in, the economy has to be considered not only for the present but the future as well. Many experts are indicating that although the interest rates are at a all time low that they will start to go up and the housing market in general will begin to slow down.
For those looking at condo buying vs stock buying they should also consider the tax implications that may be present in both situations.
When thinking about buying the condo the intention has to be strongly considered. Many parents encourage their kids to invest in real estate because that is what they did and it served them well. They tend to sway the young ones away from investing in the stock market because of the risks. Many parents are from the old school and feel that you can never go wrong with real estate.
Older individuals who are downsizing find the advantages that buying a condo have serves them well. While they have the option to rent, they feel that by buying they will have something to leave to their family in the future. They partially look at it as an investment. The benefits that come will condo living will be the same whether they buy or rent. T he difference will be instead of having the money for the down payment kept in their bank accounts to do what they want with, it will be re-invested in their living space.
Young couples have to give serious thought as to when they are going to buy the condo how long are they going to stay there. How long will it be before they outgrow the space if they want to start a family? Then based on this, are they going to get a good return on their investment at that time. Most feel that they would rather take this chance as by renting they are not going to get any return on the money they pay anyway.
Anyone that is thinking of buying a condo might want to ask the advice of their personal accountant, who has a clear picture of their personal finances. This can help in knowing whether buying or renting is financially feasible.
