Benefits of moving from a single-family home to a condominium

How will your life change when you move from a single-family home to a condominium? Here are six benefits of living in a condominium.

Convenient location

Condominiums are often built near train stations, so transportation is very convenient. In addition, there are many shops and facilities necessary for daily life around the station, and it is very convenient in daily life, such as shopping on the way home from work or completing errands on foot.

Full flat floor plan

The apartment is basically a full flat floor plan with no stairs. Because there is no traffic between the upper and lower floors, it is excellent for live activity lines. Since there are no stairs going up and down, it will be easy to live even after getting older.

No hassle of building management

In the case of condominiums, a specialized company manages all the buildings and exteriors. Therefore, there is no need to repaint the walls, maintain the roof, weed or shovel the snow, which is necessary for a single-family house.

Enhancement of facilities

One of the charms of the condominium is that it is fully equipped with convenient facilities for daily life, such as a delivery box, a garbage storage area that can take out garbage 24 hours a day, a disposer, floor heating, and a bathroom dryer / heater.

Improved security

Many condominiums place importance on security, such as installing an auto lock, a security camera, and an intercom with a monitor. The property with a resident manager will be even more secure.

High building performance

Condominiums, which are often built of reinforced concrete, are often superior in earthquake resistance, heat resistance, airtightness, and sound insulation compared to wooden single-family homes. The high performance of the building enhances the security and comfort of living.

Precautions when moving from a detached house to an apartment

On the other hand, there are also costs and rules unique to condominiums. Here are three main points to note when moving to a condominium.

Management fee, repair reserve, parking lot usage fee will be charged

There are various costs incurred every month when you purchase an apartment. The main costs are management fees, repair reserves, and parking fees if you own a car. According to the Ministry of Land, Infrastructure, Transport and Tourism's "2018 Condominium Comprehensive Survey Results", the average management cost is 10,970 yen and the average repair reserve is 11,060 yen. These must be included in your living expenses as fixed costs that you must pay each month.

Condominium management agreement

Condominiums, which are condominiums, have their own guidelines called "homeowner associations" to protect the safety and comfort of residents. For example, how to use common areas, remodeling, pet breeding, playing musical instruments, etc. You may feel inconvenient compared to a single-family home.

Trouble with residents up, down, left and right

Condominiums that are physically close to their neighbors are more prone to residents' troubles than single-family homes. I want to be especially careful about noise problems. Sounds that are common in everyday life, such as voices, footsteps, door opening and closing sounds, and chair pulling sounds, can cause trouble.

Procedure for moving from a detached house to an apartment

Ideally, the procedure for buying and selling a property for relocation is to sell and buy at the same time, but it is rare for a good property to appear at the same time as the buyer. Therefore, it is common to give priority to either one, and the recommendation is "sell first", which sells first.

If you still have a mortgage loan from your old residence, "sell first"

The following people are especially recommended for selling first.

The appeal of relocation is that the gains on the sale can be used to fund purchases and repay old mortgages. If you buy a new house after getting a profit from the sale, the financial plan for purchase and loan repayment is reasonable and you can avoid damage due to unexpected expenses.

However, since it is often a rental housing from the time it is sold until it is purchased, it is necessary to incorporate the cost of temporary housing into the financial plan in advance.

Temporary housing costs will not be incurred if the purchase is made first, but if the sale is prolonged, the mortgage of the old house that does not live will continue to be paid, and if the gain on sale is less than expected, the repayment of the new house will be a burden. There is a financial risk that cannot be done. Unless you can deal with these risks, that is, you can afford it, it is safer not to buy first.

By the way, if you can't pay off your mortgage with the gain on sale, there is a way to use a "relocation loan (replacement loan)" that combines the remaining loan and the loan of the newly purchased property, so you can also consider this. That's fine.

For more information on relocation loans, see "When and What Do Relocation Loans Use? Who Shouldn't Use?".

Be careful of "buying first" when moving to a second-hand condominium

Popular properties, especially pre-owned condominiums with favorable conditions, have buyers as soon as they go on sale, so you need to hurry to settle. Therefore, please note that even if you proceed with selling first, you may end up with buying first.

As mentioned above, there is a risk of double loan in buying first. Therefore, it is important to make a more careful judgment as to whether the purchase budget / repayment plan is reasonable and whether there is a prospect of sale when the purchase is preceded.

Regarding the procedure for buying and selling properties, which comes first, "sell" or "buy" for the first time to relocate? Please refer to this as well, as it is explained in detail in "Four Procedures for Buying and Selling Properties".

Precautions and remedies when making a new home mortgage

When moving from a single-family home to a condominium, many people in their late 50s or older have finished raising their children. People in their late 50s and older should be aware of the following when buying a new home with a mortgage.

important point

Mortgages are generally more rigorous as they get older. This is to take into account health risks and reduced income due to retirement. For this reason, there are many cases where even if you go to a mortgage consultation, you are advised to rent a house and you cannot get the loan as you wish. In addition, even if you receive a loan, there is a risk that the monthly repayment amount will be large due to the short repayment period.

Here are some ways to work around these issues:

approach

By making the mortgage repayment plan for the new house repayable with the gain on sale of the old house, it will be easier to get a loan and the burden of repayment can be reduced. This will inevitably lead to lower purchase prices. In particular, it is a point that you should be aware of if you do not sell as expected even if you proceed with selling first, and you end up with buying first.

In addition, it is important to be more careful about the selling price, which is a major factor in making a repayment plan. By planning based on the purchase price rather than the valuation price, you will be able to make a more realistic and solid financial plan. It is a good idea to collect information by asking a real estate company about the amount of money to buy.

If you are over 60 years old, you can also use "Reverse 60". The loan limit is about 50% of the property price, but the monthly payment is only interest, so the burden is small. The principal amount can be repaid by selling the property when the contractor dies.

How to choose an apartment when making it the final residence

When people who have finished raising children or seniors move to another place, the ease of living in old age is also a big point. Here, we will introduce the points of choosing an apartment when making it the final residence.

Choose with an emphasis on stores and medical facilities for daily necessities

It is no exaggeration to say that the comfort of living in old age is determined by the surrounding environment. Of particular importance is the enhancement of shops, hospitals and clinics where you can buy groceries and daily necessities. Given that you will be returning your driver's license, it is best if they are within walking distance.

Choose an area close to your family

In case of emergency, it is also important that the distance is such that the family can rush to it immediately. Even if nothing actually happens, the sense of security that the family lives nearby is great. It is safe not only for yourself but also for your family.

Choose a property with a compact size and floor plan

If you are accustomed to the size and layout of a detached house, you tend to imagine a property of the same size, but choose the size and number of rooms according to the number of family members. For couples alone, 1LDK or 2DK may be sufficient. A compact property can reduce the purchase price and save monthly utility bills.

Select a property that is easy to sell in consideration of inheritance

Even if the condominium is purchased as the final residence, let's emphasize the ease of sale in consideration of inheritance in the future. As long as you own the condominium, you will continue to pay the management fee and the reserve for repairs, so the burden will increase in proportion to the period when it cannot be sold.

Relocation without regrets with a reasonable financial plan

When relocating, not just single-family homes and condominiums, it is important to understand the precautions for buying and selling properties and mortgages, and to proceed with a reasonable financial plan.

If you want to know the valuation amount or purchase amount, the LIFULL HOME'S batch valuation service is convenient. Not only can you request assessments from multiple real estate companies, but you can also choose a company that suits you, such as a real estate company that is strong in a specific area or a real estate company that is strong in selling single-family homes. Encountering a good real estate company is one of the keys to a successful relocation.