Condo vs House For Investment – Time To Make A Decision

Condo vs House For Investment

Condo vs house for investment is a decision that many people ponder. There are a lot of factors to consider when deciding whether to buy a condo or a house for investment purposes. It’s essential to weigh each option’s pros and cons carefully before deciding. 


Assuming you’re looking to invest in real estate, there are a few things you’ll want to consider before deciding whether to buy a condo or a house. 

The location of the property is one of the most critical factors. If you’re looking for a property in the city, a condo is likely your best bet, as they are typically found in high-density areas. Houses are more common in suburban and rural areas.

Another thing to consider is the size of the property. A condo is usually smaller than a house, so it may be better if you’re working with a limited budget. But keep in mind that houses can vary significantly in size, so there are options for all budgets.

Finally, consider what kind of maintenance and repairs you’re willing to handle. Condos generally have monthly fees that cover some or all of the costs of maintaining the property, but you may still be responsible for some repairs and upgrades. With a house, you’ll be responsible for all maintenance and repairs, which can be costly depending on the age and condition of the property.


Who will be responsible for maintaining the property? With a condo, the HOA typically takes care of most (if not all) of the exterior maintenance, which can be a big plus. You’ll be responsible for everything with a house – from mowing the lawn to fixing broken windows.

Square footage

A condo or house size can influence the rental rate, so knowing how much space you’re working with is essential. The average condo in the U.S. is about 1,000 square feet, while the average house is closer to 2,000. This means that all else being equal, you could charge twice as much rent for a house as you could for a condo. Of course, there are other factors to consider – like the property’s location – but square footage is an important metric when making your investment decision.

Upkeep costs

A few different costs are associated with owning a condominium: monthly maintenance fees, special assessment fees, and repairs/upgrades.

Monthly Maintenance Fees: These fees cover the cost of maintaining common areas within the condo complex (e.g., landscaping, pool, gym, etc.), building insurance, and any other general expenses incurred by the condo corporation. The monthly fee will vary depending on the size/amenities of the complex and the number of owner-occupied units.

Special Assessment Fees: These are one-time or periodic fees that the condo corporation may levy to cover unexpected repairs or upgrades to common areas (e.g., if water damage in the complex or an elevator needs to be replaced). Special assessment fees can sometimes be relatively high – so it’s important to factor this into your decision-making when considering whether to purchase a condo unit.

Repairs/Upgrades: As with any property ownership, you will be responsible for repairing/upgrading your unit as needed (e.g., fixing a leaky faucet, painting walls, etc.). However, because condos are typically multi-unit buildings, any significant repairs or upgrades required to the structure of the building itself (e.g., roof repair, foundation work) will be covered. Owners usually cover this through their monthly maintenance fees and special assessment fees.

Rental Income

Location will always be important, but it may be even more critical with a condo. That’s because people are willing to pay a bit of a premium to live in areas with high walkability and many nearby amenities. If you can find a condo in a prime location, it’s likely to fetch higher rent than a house in the same area.

Another thing to remember is that condos often have HOA fees associated with them. These fees can range from $100 per month to over $500. It all depends on the amenities offered and the size of the condo complex. While houses don’t typically have such fees, they come with other expenses like property taxes and insurance that must be considered when budgeting for your investment.

Finally, condos tend to appreciate at a faster rate than houses. This is partly due to the limited supply of condos relative to houses and the trend of people increasingly wanting to live in urban areas where condos are more prevalent. If you plan on selling your investment property down the road, a condo is likely to net you a higher return on your investment than a house.


There are many factors to consider when deciding whether to invest in a condo or a house. One crucial factor is appreciation. Appreciation is the increase in the value of an asset over time.

Condos have historically appreciated at a higher rate than houses. This is due to several factors, including the limited supply of land for new construction, the increased popularity of condo living, and the fact that condos are often located in desirable areas.

However, there are also some drawbacks to investing in a condo. One is that you will likely have to pay monthly homeowner association dues. These dues can add up over time and eat into your profits from appreciation. Additionally, if the condo complex you invest in needs to be well-managed, it could positively impact the value of your investment.

Before deciding whether to invest in a condo or a house, be sure to do your research and consult with a qualified real estate professional. They can help you analyze the potential risks and rewards associated with each type of investment property.


No one-size-fits-all answer is whether a condo or house is better for investment purposes. It depends on your circumstances and goals. However, we hope this article has given you some food for thought and helped you make a more informed decision about which property type might be right for you.


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