Condo Vs. Apartment: Which Is Best For You? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Roman Babakin/Volodymyr Kyrylyuk/Adobe Stock April 19, 2021 Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. The decision to can impact your life for years to come. For many first-time homebuyers, a condo is a natural entry point into homeownership, after considering apartment vs. condo options and other carefully. What s the difference between an apartment and a condo
The biggest difference between a condo vs. apartment is ownership. An is defined as a residence that is rented, often as part of a larger residential building. A is similar in structure to an apartment — usually a unit within a larger residential building — but condos are owned instead of rented. The property taxes of a condo are paid by the owner; landlords, rather than apartment renters, pay property taxes for an apartment. Because the structure of condo and apartment communities is similar, they often have comparable amenities and locations. Both kinds of units may come with benefits like a pool, trash disposal, manicured green spaces, on-property gyms and more. The difference is that a condo owner is building equity, paying monthly and is responsible for all interior maintenance, while an apartment renter pays rent each month, doesn’t build equity and relies on the landlord to address maintenance issues. What to consider
Cost: The cost of renting an apartment is fairly straightforward. Typically, you pay a deposit when you begin your lease, and might be required to pay the first and last months’ payments upfront. Then, you make monthly payments for the term of your lease agreement. The costs of becoming a condo owner are a bit more involved and expensive. You’ll make a down payment and pay closing costs for a mortgage and a home inspection fee upfront. Depending on the mortgage you get, you can put as little as 3 percent down and pay up to 5 percent of the purchase price in closing costs. A condo also comes with monthly HOA dues, which vary depending on the amenities and services offered. Maintenance: When you’re renting an apartment and something goes wrong (think a leaky faucet or a broken appliance), the repair is typically the landlord’s responsibility. However, when you’re a condo owner, you’ll foot the bill to have those things fixed. (.) Amenities: Because condo and apartment buildings tend to be structured similarly — either high-rise buildings or just a few floors — they often come with comparable amenities. Think about what amenities are most important to you, such as a doorman, a pool, gym or greenspace, and compare what the various communities in your area offer. Location: Location is an important factor when deciding where to live. Because apartment and condo buildings can have similar structural footprints, you’ll likely find both options in cities and smaller suburbs (they’re less common, however, in rural areas). Both types of buildings can be near places of business, restaurants, parks and more. : When considering an apartment vs. condo, rules will be a factor. Both types of communities come with rules about behavior in common areas, what kinds of pets are allowed and what kinds of decorations are allowed on the unit’s exterior. Apartment landlords can also dictate what renters can do inside their unit and might restrict activities like hanging art or painting walls. On the other hand, condo owners can generally decorate the inside of their home however they choose. Who is a condo best for
A condo can be a more affordable entry point to homeownership, and as a homeowner, you’ll build equity over time and have access to the tax benefits that come with owning property. Condo pros
Affordability – For first-time homebuyers or those who want to downsize, condos can be an appealing option due to their lower prices. The median sales price of an existing condo was $266,300 as of the fourth quarter of 2020, while the median price for a single-family home was $299,900, according to the National Association of Realtors. Low maintenance – The condo association typically takes care of property maintenance, so you won’t have to handle yard work or other projects on your own. Walkability – Many condo communities are in proximity to shopping, recreational areas and transportation. If walkability is important to you, a condo in this type of location could be a fit. Condo cons
Dues – Condo owners have to pay HOA fees, usually monthly. These can increase over time, and they are typically based on the amenities the condo association offers. Lack of privacy – Because you share walls with neighbors, you won’t have as much privacy or control over noise. Limited by rules – Even though you own the condo, you are bound by the association’s rules, which could limit how you use or decorate the property. You might not have a say, for instance, in how you landscape. Who is an apartment best for
Apartments are a smart choice for those who don’t want the responsibility and expense of homeownership. Apartment pros
Flexibility to relocate – An apartment is a good option if you don’t plan to stay in a particular area long-term. For instance, if you’re only planning to live in a city for a year or two before moving, apartment living (and renting, in general) might be smarter than tying yourself to a condo. Low or no maintenance – In general, your landlord is in charge of maintaining the property while you rent it. Be sure to check your lease to see what maintenance, if any, you’re obligated to do. Proximity – Apartment communities are often located in or near city centers, with easy access to restaurants, shopping and more. Apartment cons
Fewer perks – While some apartments come with a community pool or recreation area, they might not have as many facilities available compared to a condo. If you’re looking for a range of amenities, a condo might be a better option for you. No equity – If you’re renting an apartment, you’re not building equity in your own home like you would if you owned a condo. When you rent, you’re helping build your landlord’s equity instead. Noise – Depending on where you rent, you could find yourself living very close to your neighbors, which can come with noise or privacy issues. Learn more
SHARE: Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles