Buying a Condo vs Renting an Apartment - Which One Is the Better Investment?

When choosing between a condo and an apartment, it can sometimes be difficult to decide which one is the right financial choice. While both have their merits, the right decision will usually come down to your personal circumstances. 

Here are four factors to consider when deciding whether a condo or an apartment will benefit you more financially.

Price

The first and most important component of this decision is price. If you can rent at a much lower rate than owning a condo, there's a good chance that you'll actually save money by renting. 

If, on the other hand, condos in your area are relatively inexpensive, renting could be a poor financial decision. If the prices are relatively close, though, a condo is likely the better option due to your ability to build equity by buying.

HOA Fees

Before opting for a condo, be sure to consider the monthly HOA fees and rules. These fees vary massively from condo to condo, and in some cases they can be so high that they negate the benefits of owning as opposed to renting. HOAs function as more than just a simple association. 

They are true cooperatives, and their shareholders have the right to use an HOA election service to make key decisions democratically. Homeowners association leaders are responsible for ensuring high standards during all voting procedures that impact their residents and community.

Because apartments lack HOA fees, the size of the fee you'll pay for your condo is important in deciding which one benefits you most.

Location

If you're thinking of buying a condo, location is key. Condos in desirable areas of a city will tend to appreciate in value. Older buildings in less desirable areas may be very affordable, but they also won't appreciate as much. 

Since you don't build equity when you rent, location is less of a financial factor if you're considering an apartment. Be sure that you can find and afford a condo is a good area if you are thinking of buying.

Your Long-Term Plans

Over time, buying is almost always better than renting from a financial perspective. If you think you may want to move within the next five years, however, the benefits are much less pronounced. 

Renting is a good way to maintain flexibility and avoid the hassles of selling a property. Buying is usually only a good idea if you're fairly certain that you want to stay in the area on a long-term basis.

By taking these four factors into account, you can decide whether an apartment or a condo is the right fit for you financially. In most cases, buying is a better use of your money than renting. However, there are circumstances under which you'll be better off getting an apartment.

On the Apartment Hunt? How to Make Sure Your Lease Application Hits the Bullseye

Though it might not be as strenuous as buying a home, looking for an apartment can be rather exhausting. With multiple applicants vying for the same apartment, you need to do all you can to prove to the landlord or rental agency that you’re the top candidate. These are some tips for making sure your lease application hits the bullseye.

Have a Good Rental History

In order for your application to be approved, you need to show that you’re in good standing with your previous landlords. There should be no evictions or broken leases on your record. There might be some landlords you didn’t get along with as well as others, but as long as you fulfilled the terms of the leases, there shouldn’t be an issue. 

If this is your first time renting an apartment, make sure that you pay close attention to all the rules of the lease to make sure you’re starting off your rental history on the right foot.

Meet Income Requirements

Apartment applications typically ask for employment and income verification's. Don’t go for apartments that are far out of your price range. Provide pay stubs that show you have steady employment and will be able to cover rent. 




If necessary, you may have to find an apartment with at least one other person to afford rent. This will protect you and the tenant.

Work On Your Credit

Landlords do a credit check with applications. If you have poor credit, it indicates that you will may trouble paying debts, which can cause concern for landlords. Good credit can be accomplished by keeping credit card balances low and paying bills on time. 

If you don’t have any credit history, you can work to building one by applying for a credit card and paying off the balance in full every month.

Be Respectful

When touring an apartment and submitting an application, you need to show gratitude and consideration. Come to the appointment on time, dressed well and introduce yourself with a firm handshake. Ask questions about things like amenities like apartment wifi and cable upgrades. 

Landlords can gauge a lot from how a potential tenant conducts themselves in the application process. A little kindness can go a long way towards getting your application approved.

It doesn’t take much to get approved for an apartment. You just need to have a good history as a tenant and provide evidence that you’ll be a dependable tenant. The future of your living situation can depend on how you handle the present.