As urbanization continues to be a powerful force in the modern world, more and more people are moving to big cities. And, more specifically, a great number of homeowners is starting to think of selling up their homes and moving into a condominium unit or a high rise. The financial challenges involved in making this move will vary from case to case; nevertheless, below you will find an in-depth account of key financial pros and cons of moving from a house to a high rise.
Financial advantages of moving to a high rise
The first and most fundamental thing to note is that a high rise is usually cheaper, both to buy and to maintain. This is not only because a high rise tends to be smaller than a typical urban home; it is also because high rises are in more modern buildings without problems relating to age. Moreover, as amenities tend to be centrally dealt with, like in real estate in the Philippines, everything from concierge services to providing water for the entire building will tend to come at a good rate with a high rise.
When you downsize by moving to a high rise, you also cut down on the cost and effort associated with maintaining a garden – such as mowing the lawn and cleaning the pool. Instead, you trade all of these in for an unforgettable view of the city. Transport costs will usually be cut down, too, as you will be right in the heart of the metropolis.
Financial disadvantages of moving from a house to a high rise
One setback is that you do lose certain assets, such as a backyard, a pool of your own and a garage space. Moreover, though many high rises offer you a great sense of community, you can also suffer the drawback that comes with close proximity to your neighbors. If your neighbors are noisy or just plain annoying, you may feel that the move is not financially worth it.
Another thing to take into account is the possibility of hidden costs. Not everyone knows that living in a high rise often means paying a few thousand dollars a year for a concierge, for example, or paying fees for a cleaner that has been approved to work in the building as scheduled. Of course, these extra costs are usually considered worth it, thanks to the convenience that they provide. However, it is definitely worthwhile sitting down and crunching those numbers so that you know where you stand.
The bottom line
Moving from a house to a high rise can be regarded as a trade-off, and a welcome one for most people. What you lose in outdoor space and privacy, you gain in convenience, views, amenities and a sense of community. It is advisable to do your research and not put your savings on the first thing you see. Browse for more condos for sale on Zipmatch to know the best deal for your hard-earned money.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.