Should you own your apartment?

You might think about an apartment as a place to rent before you are ready to buy a home. But have considered owning an apartment if it is part of a condo building or co-op building? As the owner of the apartment your wealth can grow as the market value of the apartment increases, just like the housing market in general.

An apartment that you own may actually serve as a great “starter home,” because you can possibly find a studio, 1-bedroom or 2-bedroom apartment to purchase in your price range.

Financially this might be a better option than waiting for the “right time” to buy a 3- or 4-bedroom house. By the time you are ready to buy a larger house, you might choose to sell your starter apartment for a profit, or possibly rent it out if the co-op or condo association allows that.

There are some differences to be aware of when considering ownership of a co-op or condo apartment rather than a house. Read our follow-up post to understand the key differences.

If you think owning a starter apartment may be right for you, make sure to include “co-ops and condos” in your online search criteria.

Some personality types prefer to start off with a larger home rather than “starting small” and leveling up. What about you? What's your Ownerscope?