The Luxury of Buying a Condo with Your Home Mortgage

By Jonathan Haeber
CMR Columnist

Scarlett Johansson's newest major purchase is in the TriBeCa neighborhood of Manhattan. She paid a pretty 1.9 million dollars--and it's a condominium! But condos for all types of people, in all budget ranges, are great options for home buyers trying to make the most of their mortgage.

Scarlett Johansson's new 1,400-square-foot abode (quite cozy in terms of size for a movie star) features Brazilian cherry wood floors, a double-height vaulted ceiling, and a fireplace made completely of limestone. While your condo might not offer so many luxuries, you can still get many enviable features, and maybe a little more bang for your home mortgage buck.

Downtown Revival and Condo Growth

As space becomes more valuable, more people are finding themselves purchasing condominiums, which are usually located in downtown neighborhoods. From 1970 to 1980 there was a 33% increase in downtown home ownership, from 1980 to 1990 a 35% increase, and from 1990 to 2000, there was a 36% increase.

Johansson's $1.9-million condo is only one among thousands on the market. And young professionals intent on a home mortgage find that only condos may include luxuries like a personal trainer, gardener, and a full gym in the same building as the home.

Get a Mortgage on a Home or Condo?

If you're interested in purchasing a home, but you can't decide whether you should invest your mortgage in a house or a condominium, consider the following:
  • Commuting: Condominium owners often don't want to commute from the suburbs. The convenience of a condo is its proximity to the downtown central business district.
  • Stretching your Budget: If you're younger with insufficient income to buy a home, a condominium can be a great early investment--just be sure that you can make the payments!
  • Lower Maintenance: Condo owners generally choose a condo for its low maintenance demands. The condo's homeowners association takes care of all upkeep and repairs. It's like having a landlord without having to pay rent and no home improvement loans to take out!

Whether it's a condo or home, taking out a home mortgage is not an easy decision to make, but it will likely pay off for you in the future.

Sources
New York Times: Scarlett Johansson - After the Lights and the Action

About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He owns a condo in the San Francisco Bay Area.

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