There is a lot of talk right now about whether to rent or buy a condo in Kenosha, WI, and across the country in general. There are definitely pros and cons to both renting a condo and buying a condo. The choice between renting and buying is among the biggest financial decisions that many adults will make. The decision to buy or rent a condo depends on several factors.
1. Your Financial Situation
This is probably the most important factor. Now realtors can get creative in the things that they are able to do, but in reality it all comes down to where you are at financially. You will need to have saved up enough money for a down payment, closing costs, and any maintenance repairs and upkeep to your new condo. For example, say there is a townhome that’s for sale or that is currently being rented, if I were the tenant and paying $1,500 a month and the cost is $180k to purchase, it makes more sense to purchase the condo. Now, say you are only paying $750 – 800 a month in rent, it would make more sense to continue to rent. This will all depend on the person’s situation.
2. Determine how long you expect to be living in Kenosha
The second major factor to consider is determining how long you plan on staying in the area. We ask the buyers that we work with if their job is fairly stable, or if they will be relocated in the near the future? If you can’t be in one place for a longer period of time, then renting a condo may make more sense for you. It will offer you the flexibility to relocate as needed. If you are planning to stay in your place for 5 – 7 years, you will be able to see the return on your down payment, closing costs and equity. You won’t have instant equity, so being in the condo for 3 years won’t have the desired effect as staying in the home longer.
3. Weigh the responsibility of maintenance of the condo
One perk of renting a condo is that if something goes wrong on the interior, you can call your landlord to fix it. The interior of the condo will be dictated by the rent / lease, as the security deposit will take care of anything that needs to be fixed after the tenant moves out. The owner of the condo unit will not want to leave anything in the hands of the tenant to repair as it may not get done properly or some other issue may arise.
4. Compare the long term costs
If you plan on staying in Kenosha for many years to come, then owning a condo can start to pay off as you build equity the longer you remain in the condo. If you are renting, you will need to purchase renters insurance as that will cover your personal belongs in the home. The owner of the unit will have condo insurance as that will cover any of the items that he owns and is responsible for with the unit. With any condo association, they do have monthly association dues, please be advised that those are built into your rent payment by the owner of the unit.
5. Consider any type of stipulations
The condo association does have bylaws / rules and regulations that each person must follow. The association may allow pets, like cats and dogs, but if you are renting the owner may not allow any pets. Another thing to keep in mind is that almost all condo associations require that the whole development can only have less than 20% as renters. They do that to keep the integrity of the association in tack, as well as the look and the value of each of the units and association as a whole.
Whether you are thinking about buying or renting a condo and want to determine if it is right for you, contact us today to help you find out what your best options are here in Kenosha.
