Condo vs Apartment: Which is The Best for Living?

By Investoxpert | 25 Jul 2024 | Guide

The main distinctions between Apartment Vs Condo are frequently sought for by real estate investors and purchasers. Although both are well-liked in India's real estate industry and provide respectable returns on price growth, it's critical to comprehend what each entails. We have contrasted and discussed the distinctions between condos and apartments in this blog.

What Is A Condo?

A condominium is a type of gated community housing. It's a sizable residential complex with many living units. We call these apartments condominiums. The land on which the condominium complex is situated is not owned by the condo owners. The individual only owns the apartment or residential unit, nevertheless.

The residential units have distinct boundaries and are equipped with various conveniences. These consist of parks, clubhouses, swimming pools, and fitness centres. In particular, this real estate market has grown in popularity in recent years.

What is an Apartment?

Only a portion of a structure is used for apartments, which are independent living quarters. An apartment can be bought for personal use, or it can be rented out for business functions. An apartment's upkeep is often the responsibility of the property management group. This group is housed in a community, building, or residential complex.

An apartment in a residential building might be equipped or unfurnished, depending on the arrangement. A residential apartment's bedroom count varies according to its arrangements. This might be one, two, three, four, five, or even larger BHK.

What Is The Difference Between Condo And Apartment?

Now that you know what these types of properties imply, let’s check out the key difference of Apartment Vs Condo.

The ownership structure of a condo and an apartment marks the biggest difference. An apartment is a residential property that you can put on rent. Often, apartments are a part of a larger building.

In this context, a condo can be similar to an apartment. Usually, these are small units housed within a big residential building. However, condos cannot be rented, they have to be owned. The property owner shells out the tax for a condo, while the landlord pays the same for an apartment. If an apartment is rented out, the tenants don’t have to pay any tax. They, instead, pay the rent to the landlord.

While exploring the difference between Apartment Vs Condo, you might notice that the structure of apartment and condo communities is somewhat similar. The locations and amenities may also be close for these two types of properties. Even both residential apartments and condos offer amenities like trash disposal, swimming pool, open spaces, gardens, gyms, and play areas for kids.

However, you should note that a condo owner is building equity as the person has to pay dues on a monthly basis to the homeowners association (HOA). He or she is also responsible to carry out all the internal maintenance tasks.

On the other hand, an apartment renter simply needs to pay rent every month. The person doesn’t build equity in any way. Renters need to depend on the landlord in case any maintenance is required.

Therefore, condos and apartments provide housing options in buildings having multiple units. These properties are available with separate features catering to a wide range of lifestyles and preferences. While comparing Apartment Vs Condo, it’s imperative to understand how they differ from one another.

Let’s Have A Look At These Differences In Detail:

1. Structure Of The Ownership

Condo- They are apartments or commercial spaces contained inside larger building complexes. Each of these units is owned separately, and each owner is the legitimate owner of that unit. Shared ownership applies to the common parts of the complex, which include lobbies, elevators, and other utilities. It is mandatory to join the homeowners' association (HOA) when you buy a condo. As such, you will be in charge of maintaining common areas and enforcing rules.

Apartments- The main difference between Apartment Vs Condo is that in case of apartments the landlord or other singular entity is the owner of apartments. These properties are apartments within a structure. The properties' owners have the option to live there themselves or rent them out to renters for a certain amount of time. This is usually computed in return for rent either monthly or annually. Although condominium owners are legally entitled to their properties, once these living spaces are rented out, apartment residents are not entitled to any ownership rights over them. They must follow the conditions specified in the rental or lease agreements.

2. Maintenance and Repairs

Condo- Condominium owners are in charge of maintaining and repairing their own units. Certain regions, nevertheless, are joint ownership. The HOA is in charge of managing and maintaining these spaces. Special assessments of monthly dues collected from unit owners provide the required funds. In this manner, owners may make appropriate contributions to the fund and remain informed about the maintenance costs of the shared areas. This is one of the major differences in Apartment Vs Condo.

Apartments- The responsibility of doing required maintenance and repairs in apartments is on the landlord or property management business. Thus, in the event that an apartment is rented out, the renter is exempt from having to handle substantial repairs or structural upkeep. They must notify the owner directly in the event of any damage or problem so that it may be fixed. The landlord and the renter find this arrangement to be easy because they each understand their distinct responsibilities when it comes to upkeep of the property.

3. Money-related Concerns

Condos- It's critical to be aware of your budget while comparing condos and apartments. Buying a condo is an expensive procedure that requires large upfront payments. This covers the down payment, closing charges, and recurring HOA dues.

On the other hand, having a condo gives you the chance to build up your home equity. In this manner, you stand to gain from future increases in property value. Additionally, property owners are free to alter their residential units to suit their tastes.

Apartments- The amount of money you must pay up ahead when renting an apartment is little. You are exempt from paying property taxes, down payments, HOA dues, and insurance because you do not own the property. As a result, you are spared the dangers that come with house ownership. This gives you greater financial management freedom.

On the other hand, if you rent an apartment, you forfeit the long-term financial advantages that come with owning a house, such as the ability to accumulate home equity.

Now you have understood the insights of Apartment Vs Condo in detail.

What Are The Pros Of Living In An Apartment?

• It's advisable to rent an apartment if you can't afford the costs associated with buying a house.

• If your work requires you to move to a new city on a regular basis, consider renting an apartment instead of buying a condo.

• As a tenant, you won't have to pay for any significant upkeep. The property's upkeep will fall within the landlord's purview while you occupy it. To understand your responsibilities, be sure to review the lease or rent agreement.

• In large cities, apartment complexes are typically found adjacent to the core business districts. This guarantees quick access to multiplexes, restaurants, and retail stores.

What Are The Pros Of Living In A Condo?

As the owner, you will profit from the gradual increase in your home's equity. Additionally, condo owners receive tax advantages that tenants do not.

• Since the HOA will handle property upkeep, you just need to work little on the projects that are organized.

• The majority of condo buildings are situated adjacent to retail centres and parks. You can go to your place of employment via public transportation.

Conclusion

We have covered every aspect of the distinction between Apartment Vs Condo. You may now choose a residence based on your budget and lifestyle. However, if flexibility is your top priority, renting an apartment will be the best option. To enjoy this independence, whether you don't have enough money or you just wish to move to a new neighbourhood or city eventually, rent an apartment.

So, contact InvestoXpert today.

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