Owning a condo is a lot different than renting in Danbury,CT. Each option has it's advantages and disadvantages. If you plan on staying in the area for less than three years, I would recommend renting because the costs associated with moving. If you expect to stay any longer, I would recommend purchasing because it does not sense to be a long term renter and help pay down your landlords mortgage.
There some advantages to renting a townhome in Danbury,CT. You are free to move on after your lease is up. There is less money required initial up front to get you into a home than purchasing, since landlords typically 2 months security deposit in addition to first month rent (the most allowable under state law if you are under 62 years old). In addition to collecting the security deposit & first months rent, I am required to run your credit through my brokerage's firms third party vendor at a small cost to you, there are no exceptions. The report will only show your credit score, not current balances that you owe & also the program checks for any evictions or civil judgments. It is always the owners call on whether they will take you as an applicant or not.The owner of the property is responsible for most of the maintenance that may have to be done. However, since you don't know the house, you would have to get permission from the owner in writing to make some changes including paint. Another disadvantage for renting is that rent is just like another bill, and you don't get anything in return other than a place to live. At the end of the lease, all you would get back would be your security deposit if you have the place in the same condition when you moved in.As a renter, you would essentially be helping the landlord gain wealth by paying their mortgage down.There is no guarantee the landlord will maintain the home like you would. There are no tax incentives for renting. As a renter, if the owner decides they don't want you there after a year, you have to move. As a renter, any pet that you would like to have must be approved by the landlord, even if it is permitted in the condo rules. You have to evaluate your situation, as you can see from the chart below, renting for several years does become quite costly considering the average rent in the area has been over $1500/month. In some cases, it is more affordable to own than to lease, even with a smaller down payment for your mortgage.
When you own, you really become member of the community. As a owner, you can become involved with the condo. You are formally committed to the unit, by way of the mortgage and deed. If you have to sell, you are responsible for paying off all the debt associated with the property. When you buy a condo in Danbury, you have to fund your own down-payment and closing costs. If anything system of the house breaks that is not part of the common elements, it is your job as the homeowner to fix them. It does also take more time to purchase a property than what is usually needed to get a rental. As a homeowner, you would be responsible for your own furnace, hot water heater, appliances, electrical and plumbing fixtures.As a homeowner, if you have to move, you have to decide whether selling or renting is the best option for you. You can to do the interior improvements you want to over the time. You have a say in what goes in to the complex, as you have a voice at the meetings, etc. As an owner, you can personalize your property the way you want it (flooring, appliances, paint, cabinets,etc) subject to association rules.When you own, you are in control of your housing, not the landlord. You can have whatever animals you want as long as permitted by the condo rules. There are tax benefits for owning, since you can deduct the interest you pay on your mortgage on your taxes. You can build equity over time.
If you would liked to discuss your situation, please contact me and I will get back to you. First time buyers with questions welcomed and encouraged.
Page Last Updated 1/23/2020