Should I buy a condo or wait until I can afford a house?

One of my clients finally bought a condo. Like a lot of people, he really wanted a single-family house but because he couldn’t afford the monthly payments, he was forced to downsize his price point. Eventually, he found a mortgage payment he could afford on a tiny condo that was a lot smaller than his current apartment. On the upside, the condo was a lot closer to his work and in a better area than the houses he had been looking at.

Why did he decide to buy a condo instead of holding out for a house, or continuing to rent? He began to see the purchase of the condo as an investment in one leg of his plan to buy his dream home. Instead of waiting to save up for a house, Jason opted to invest his way up to a house, hoping to sell the condo for more money or hold onto it if he didn’t need the money later.

Not everyone has the flexibility (all joking aside) to fit into a small condo, but if you’re a first-time buyer, it might make sense for you. You have a long time-horizon to plan future real estate purchases and may not have the need for more space yet. If you want to explore the investment opportunities in buying a condo, give me a call to discuss your thoughts.