Condo life could be just right for your clients
With the expected record number of millennials entering the housing market during the next decade, along with baby boomer retirees seeking to downsize, now’s the perfect time to rethink condos — particularly in light of recent government policy changes easing restrictions on condominium financing.Footnote1
This new financing flexibility, coupled with the many benefits that come with owning a condo, could help fuel a rise in condo popularity. And that’s something you and many of your clients could use to your collective advantage.
A key driver: Affordability
Condo prices are frequently lower than single-family homes. That’s a given. However, the fall 2019 policy updates made by the U.S. Department of Housing and Urban Development (HUD) that relax restrictions on FHA financing for condominiums should enable “more first-time buyers, older adults, and low- to moderate-income families to achieve the dream of homeownership,” according to the National Association of Realtors.Footnote1
In addition, maintenance and upkeep costs are also typically lower with condos. Property taxes, utility bills and insurance also tend to be lower. Point out to clients how all these things help generate monthly savings for owners.
Living life with less hassle...
While there are monthly condo fees to pay, condos owners don’t need to worry about expensive, time-consuming and potentially dangerous outdoor repair projects, since they’re generally not responsible for exterior building maintenance. And no more mowing the lawn in the middle of summer or shoveling snow from the driveway or sidewalk in the worst of winter. Some condos even have onsite surveillance, which helps provide an added sense of security.
...and more fun
The list of shared amenities condo owners can enjoy is long; pools, gyms and outdoor communal areas are just for starters. Many condo communities organize special events, from cookouts and socials to doggy playdates.
But the biggest draw for your clients might be the way condos have evolved to fit different lifestyles. Make sure they know that it’s a more customized experience these days. Some condos are geared for the younger set that likes to be a part of the action and close to attractions. Others are geared to clients looking for a more peaceful, quiet setting. Ultimately, there’s such a wide variety of condo communities, one may be right for your potential buyers.
Condos for the win
Given all these pros, it’s easy to see how condominiums could be the perfect option for any number of your home buying clients.
A note from your lending specialist
Contact me if you or your clients would like to know more about options for condo financing.
1 "Condominiums Overview," National Association of Realtors website