Key Takeaways:
- Owning a condo offers the financial benefits of ownership without many responsibilities and restrictions that come with owning a house
- Condo ownership allows more financial stability over time, the creation of an asset that pays off in the future, a buffer against inflation, and more
- These financial benefits remain through the ups and downs of the US economy
The real estate market is an ever-changing, intimidating force to be reckoned with. Though the decision to purchase property – whether for a home or condo – can be daunting, the benefits of making this investment in your future far outweigh the costs.
Here, we will dive into all of the financial benefits of condo ownership in senior living communities to illustrate that even when the future is uncertain, an investment can still pay off.
In This Article
Financial Benefits of Condo Ownership
Why Fox Hill Is Right for Your Financial Future
1. Stability
2. Creates Future Value
3. Offers Financial Benefits of Ownership Without the Hassle
Next Steps
Financial Benefits of Condo Ownership
Condo ownership is a way to live a more stable life amid a shifting economy, build value over time, and enjoy the benefits of ownership without the hassles of a home. Let’s examine the ways that condo ownership can pay off for you in the long run.
- Stability
No unexpected rent increases
If you’ve ever rented an apartment or other property, you’re likely used to the consistent fear in the back of your mind that your rent will increase.
You never want to be in a position where you have to choose between staying in a residence that stretches your financial stability or choosing to embark on the tedious – and expensive – undertaking of moving to a new place.
With condo ownership, you have the power to control your own space, eliminate these unknowns, and enjoy the peace of mind that comes with doing so. You will experience this stability over time, as you no longer have to deal with someone else altering the terms of your housing.
Offset the effects of inflation
It’s no secret that inflation rates are rising. Prices for goods and services in the US had increased by 7.7 percent from October 2022 when compared to October 2021. Investing in property can work to offset the effects of inflation you experience.
Consider a point made by Forbes in a recent article: even though inflation may be greater than real estate appreciation, the time frame is longer for real estate investments, so the return over time is often higher as the years play out.
- Creates Future Value
Build up equity
Unlike renting, purchasing a condo allows you the opportunity to build equity over time. As you continue to pay for your ownership, you create equity with the potential to pay off in the long run.
Since equity increases with your percentage of ownership, it will grow as you make those payments as well as when the value of the property goes up. This is an extremely valuable asset to have, as it can amount to cash for you or that is passed down to your loved ones if you decide to sell.
- Offers Financial Benefits of Ownership Without the Hassle
Receive tax breaks
Condo owners may receive tax deductions for mortgage interest and property taxes. Though you will pay real estate taxes on your individual condo, they are deductible up to an annual limit of $10,000.
As the value of the condo increases over time and your equity builds, you can look forward to the capital gains that go right into your pocket. Capital gains include specific stipulations:
- Tax obligation amounts for these profits depend on several factors, including length of ownership, taxable income, and filing status.
- If you have lived in the condo as your primary residence for at least 2 of the last 5 years, you can keep some of the payment without any tax obligation.
- You can qualify to exclude up to $250,000 from the capital gain amount from your taxable income as an individual or $500,000 as a married couple filing together.
To see how this applies to your individual circumstances, always consult a tax professional.
Avoid the hassles of owning a home
Condo ownership in a senior living community has the unique benefit of being the perfect middle ground between renting and home ownership. Unique benefits of owning a condo include:
- Reach financial goals: Purchasing a condo will bring you closer to reaching your financial goals by investing in property over the long term.
- Save money: Condos are often less expensive than homes due to their smaller size.
- Avoid home responsibilities: In senior living condos, owners don’t have to worry about the stressors or costs of homeownership regarding maintenance, landscaping, and installation of security and safety measures.
- Enjoy the services, amenities, and community: Senior living condos come hand in hand with helpful services, luxurious amenities, and social aspects that are harder to find in a residential setting.
Why Fox Hill Is Right for Your Financial Future
Fox Hill allows you to enjoy the benefits of making a sound investment while joining a community full of supportive people, incredible amenities, and a wide range of services – all in an ideal location.
Balancing the advantages of property ownership with fewer responsibilities than owning a home, imagine the life you could have in this active and welcoming community in the heart of Maryland, just a short drive from Washington D.C.
Fox Hill takes care of it all. From maintaining the exterior and landscaping to housekeeping, you can have more time to focus on building relationships with your neighbors and pursuing your hobbies.
With social events, classes, fitness opportunities, walking trails, and more, Fox Hill aims to give you the space to do more things you love and less of what you don’t.
Next Steps:
- Learn more about our Bethesda condominiums
- Contact us to set up a tour or discuss more about our condominiums
Sources:
https://www.thebalancemoney.com/pros-and-cons-of-investing-in-retirement-homes-2124833
https://listwithclever.com/real-estate-blog/buying-a-house-at-65-years-old/
https://www.nerdwallet.com/article/mortgages/buying-a-house-whats-changed
https://www.rocketmortgage.com/learn/pros-and-cons-of-buying-a-house
https://www.redfin.com/city/21534/MD/Bethesda/housing-market#demand
https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
https://www.rocketmortgage.com/learn/tax-deductions-for-homeowners
https://www.nolo.com/legal-encyclopedia/deducting-real-estate-taxes-on-your-home.html#:~:text=What%20About%20Condominiums%3F,areas%20by%20your%20homeowner’s%20association.https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates#:~:text=How%20much%20capital%20gains%20are,409%20Capital%20Gains%20and%20Losses.