WHAT IS A CONDO?

What is a condo? If you ask most people to explain, they’ll tell you, “It’s like an apartment or townhouse, but you pay condo fee.” Or, "It's like a home with maintenance fee ." Both of these descriptions are mostly true, but there’s a lot more to the condominium meaning and the condos versus apartments debate, especially if you're trying to decide where you should live.

What is a condo?

A condo, which is short for “condominium,” is a private residence owned by an individual homeowner or family in a building or community with multiple units or townhouses. Although they are usually part of a larger high-rise building, "detached condominiums" also exist.

What all condos have in common is that they share common areas—such as yards, garages, tennis courts, swimming pools, rec rooms, or gyms—with other units that the condominium owners don't have to maintain themselves, making home upkeep that much easier.

The difference between an "apartment" complex and condominium is legal. There is no way to differentiate a condominium from an apartment simply by looking or visiting the building. What defines a condominium is the form of ownership. The same building developed as a condominium (and sold in individual units to different owners) could actually be built at another location as an apartment building (the developers would retain ownership and rent individual units to different tenants).

Should you consider condo ownership? Here's how to decide

You can see why condominiums would be ideal for people who want to own a piece of real estate but don’t want to worry about yardwork and maintenance. The condos versus apartments conundrum is often an easy choice for retirees, young adults without kids, or anyone who would like to own property in more densely populated areas where detached, single-family homes just cost way too much There's also more of a community to be found in a condo association compared with an apartment building.

And the advantage of buying a condominium over renting an apartment or townhouse? One, condos tend to be better built and maintained than rentals and they likely have an attractive amenity package. Plus, condo owners or unit owners will gain equity in their real estate over time—so why not invest your money in a home rather than throw it away on rent?