Condo/Townhouse vs. House

jm514 · November 2011

I'm a lurker here looking for some advice. We are first-time buyers that are in between a fully renovated condo/townhouse with a huge finished basement as additional living space, 2 br/2 bath, laundry in unit and decent sized bedrooms - vs - a single family house that needs a ton of updating with 2 large bedrooms, 1 bathroom, unfinished basement and fairly large living room. We have a 2 year old and another baby on the way and would like to get into a new place soon but can't decide between the two properties. They are priced the same but we cannot decide if it would be best to go with the updated, less maintenance necessary townhouse vs. the single family home that needs work. The biggest con for the condo is the lack of private yard and the biggest con for the house is the amount of work needed. Any advice is welcome! Thanks!

Desmond&MollyJones* · November 2011

My personal preference is a single family home.

I would never buy a condo at this point in my life, for many many reasons.

nsfw · November 2011

A single family home will retain its value and gain value to a far greater degree than a condo ever will. Even in this market, eventually a SFH will be a wiser long term purchase than a condo.

Condos appeal to a certain type of people and lifestyle. In my opinion, SFHs have more universal appeal to a larger number of people. For me, it would really depend on the level of work the house required. If it's dated and needs minor things and is ugly that would be fine, but I'd avoid a total gut and reno.

It really depends on your lifestyle and how much time you have to keep up with a yard and all that. Additionally, most condos are built to apartment-grade building codes, which means the potential for noises and smells to waft through from your neighbors.

TarHeels&Rebels · November 2011

As the previous owner of 5 homes, a couple of which have needed extensive updates, go for the new place. Many ladies on here believe that SFHs are the end-all-be-all, no exceptions, but townhomes are right for many people at many points in their lives.

Do you have $20k-$60k-$100k handy for "extensive updates?" Most of us don't have that much money sitting around. So you're going to have to live a) in a run down place til you save up enough or b) take out a loan on top of your new mortgage. I've done both a and b and neither is enjoyable. Not to mention the simple fact that the VERY last thing you want to do with young children is major home renovations.

To really make your decision, get a contractor to go out to the older home and quote you for repairs. Then mentally add that number onto the asking price. Do you feel like the house is worth that? Probably not. You've got to really be in the sweet spot (location, market, desirability, etc) for a reno to be worth it these days.

lmdbww · November 2011

TarHeels&Rebels:

As the previous owner of 5 homes, a couple of which have needed extensive updates, go for the new place. Many ladies on here believe that SFHs are the end-all-be-all, no exceptions, but townhomes are right for many people at many points in their lives.

Do you have $20k-$60k-$100k handy for "extensive updates?" Most of us don't have that much money sitting around. So you're going to have to live a) in a run down place til you save up enough or b) take out a loan on top of your new mortgage. I've done both a and b and neither is enjoyable. Not to mention the simple fact that the VERY last thing you want to do with young children is major home renovations.

To really make your decision, get a contractor to go out to the older home and quote you for repairs. Then mentally add that number onto the asking price. Do you feel like the house is worth that? Probably not. You've got to really be in the sweet spot (location, market, desirability, etc) for a reno to be worth it these days.

I agree!

Also, is a 2 BR place going to be big enough for your growing family? What are the sq footages of both homes?

jm514 · November 2011

We are going to look at both for a 2nd time this weekend and are brining a relative who is a contractor to do some estimating for us. I''m just scared with the condo that 5 years down the road we'll need more space and will need to move and re-sale value will be an issue. As for right now, our 2 girls can share the 2nd bedroom with no problem and the finished basement in the condo gives us plenty of family living space/play room. My worry is a few years from now. I hate making decisions! Both places are in our desired neighborhood, great school systems, close to family, etc.

dberrett · November 2011

I bought my condo six years ago, before I even dated my now husband. At the age of 25 it was the best decision I could have made. Now that I'm older and married, I regret the decision. Some reasons are unique to my condo/town, but others aren't. One thing you have to consider with a condo is the monthly association fees. You have to essentially add that on to your monthly payment, so the price of the condo is higher b/c of that. I don't know what your fees are, but my guess is that what you'd be paying in fees you could pay towards a loan to make the necessary upgrades on a SFH. You could take out a loan for the renovations, but you can't take out a loan for condo fees.

I'd also be considered with the lack of yard with your growing family. You may also want your family contractor to give you opinions about the expandability of the SFH if you need to in the future. You wouldn't be able to do that with a condo, ever. Also, in condos, you have to worry about noisy neighbors, especially with kids napping/sleeping. Maybe the walls are super thick (unlike mine) and it won't be an issue for you. But I know I'd be miffed if I'd just gotten my newborn down to bed finally after crying for 2 hours and a neighbor came home drunk from the bar and slammed a door or blasted music and woke up the baby.

Desmond&MollyJones* · November 2011

jm514:
We are going to look at both for a 2nd time this weekend and are brining a relative who is a contractor to do some estimating for us. I''m just scared with the condo that 5 years down the road we'll need more space and will need to move and re-sale value will be an issue. As for right now, our 2 girls can share the 2nd bedroom with no problem and the finished basement in the condo gives us plenty of family living space/play room. My worry is a few years from now. I hate making decisions! Both places are in our desired neighborhood, great school systems, close to family, etc.

That will probably be what happens. You just need to ask yourself if you will be ok staying in the condo a lot longer than planned if and when you cannot sell in 5 years.

honey&badger · November 2011

Based on what you've told us, I vote neither. It sounds like you will need a 3br within 5 years. I wouldn't buy a 2br given these circumstances.

slukd79 · November 2011

TarHeels&Rebels:
As the previous owner of 5 homes, a couple of which have needed extensive updates, go for the new place. Many ladies on here believe that SFHs are the end-all-be-all, no exceptions, but townhomes are right for many people at many points in their lives.
Do you have $20k-$60k-$100k handy for "extensive updates?" Most of us don't have that much money sitting around. So you're going to have to live a) in a run down place til you save up enough or b) take out a loan on top of your new mortgage. I've done both a and b and neither is enjoyable. Not to mention the simple fact that the VERY last thing you want to do with young children is major home renovations.
To really make your decision, get a contractor to go out to the older home and quote you for repairs. Then mentally add that number onto the asking price. Do you feel like the house is worth that? Probably not. You've got to really be in the sweet spot (location, market, desirability, etc) for a reno to be worth it these days.

All of this. I don't think this is simply a SFH vs. condo issue. You need to consider hidden expenses. Especially with young children, I would question a place needing extensive renovations.

sjb&apa · November 2011

honey&badger:
Based on what you've told us, I vote neither. It sounds like you will need a 3br within 5 years. I wouldn't buy a 2br given these circumstances.

This.

Condos are great for some people, I bought one in my single days and it was the perfect place for me to live at the time. I lived alone and didn't need much space, and didn't have the time or desire to do the upkeep that a SFH requires (yard maintenance, etc).

I would not consider buying a 2br/2ba or a 2br/1ba of any variety (condo or SFH) with a family of 3, soon to be 4. My 2/2 condo was fine for me, but was way too small even for 2 people after I got married. I would not move to a home that size with a family.

Like I said, I wouldn't encourage either of these options for you since I think you'll outgrow them too quickly, but I would especially caution against the SFH. Do you really want to share 1 bathroom for your whole family? And since it requires a lot of work, that's a huge added expense. If you sell in 5 years, will you get your money back for any renovations you do? Not to mention the hassle of living in a house under renovation.

I would also note that with a condo, you'll have to pay HOA dues each month, and that means that your monthly housing costs are not fixed. Your HOA can raise dues, and most do on a yearly basis. Make sure you budget for HOA dues increases if you buy that option.

skye1124 · November 2011

I usually just lurk, but please, please let us save you from making a HUGE mistake. Your family is too big for a 2 bedroom anything. Trust me. I have two small children too. Our last house was 3 bedrooms and even that felt way too small. It's easy to assume that you can live with something until you actually do. Additionally, a 2br SFH is usually difficult to sell--people want at least 3 bedrooms. A finished basement is better than nothing, but do you really want to live with that sort of setup? Do you want to have to go down to the basement with the kids every time they want to play? You may think you're ok with that, but someday you're going to see houses that have a family room off the kitchen and think "geez, that would be nice." I totally understand how it feels when the housing bug bites and you feel like you have to buy something, but resist. Rent something you're comfortable in, save, and buy a house you love that will still fit you in five years. Prices aren't going anywhere fast--you can wait a year if you need to. Then look for a SFH with at least 3 bedrooms and a family room (in addition to the living room) on the main level. Please don't settle.

breaness · November 2011

honey&badger:
Based on what you've told us, I vote neither. It sounds like you will need a 3br within 5 years. I wouldn't buy a 2br given these circumstances.

Agreed. I would keep looking. When we started our search we were looking at 2BR houses with small yards. When we ended up buying, we ended up buying in a different area, got a 4 BR house, 3/4 acre lot, beautiful kitchen and 2 car garage for $30k less than the small houses we were looking at in the other town.

msmerymac · November 2011

My concern is space and resale. Three bedroom homes are MUCH more desireable than 2 bedroom homes. If the SFH has space to put an addition off the back or add another story, I'd most definitely do that. It's pretty hard to add another bedroom to a condo. Just in case you decide to add on in a few years rather than moving, or if you can afford to do that before reselling.

chicagobride_07 · November 2011

I agree with the pp. We are looking now, as buyers, and there is only two of us (no kids). I would not consider a 2 bedroom house. I think it would not have good resale value.

I have no problems with townhouses. We've seen several with 3 bedrooms- basements, and 3,000 sq. feet. We prefer the corner units. We are leaning towards these, in fact, since they are totally updated (some decked out) compared to SFH's which need extensive remodeling and are about $100K more (at least where we are looking). We are still looking in the city, so none of these SFH's have huge backyards, either.

jay.otter · November 2011

I agree with the others, you need more than 2 bedrooms. I also think life with kids is a lot easier with a fenced backyard.

glittergal73 · November 2011

We lived in a townhome, and it was nice--but, a sfh is so much nicer. More privacy, in our area resale is better on a sfh, and you have more freedom to do what you want to the property, etc.

toothpastechica · November 2011

swimbikepuke:

I would buy the SFH, no question. But I would stay away from a 2 bd. You're going to find out very soon how quickly you need more space when you have a second child and it's going to be hard to sell that 2 bd AND hard to come out financially on top.

I think the "starter home" is pretty much a dead concept. Or at least the starter home as we all used to think of it. I wouldn't buy anything that had fewer than 3 bd. I just think it would appreciate too slowly, be too difficult to sell, and be outgrown too quickly.

This....also rememebr that condos/townhouses come with monthly maintanance fees, and can bu upwards of 500$ a month!!! I dont know about you, but I have better places to use an extra 500$ a month then paying for all my neighbors to get thier grass cut (if you even get ANYTHING for the strata fee except a shared wall)

sillygoosegirl · November 2011

Make sure to take into account the HOA fees on the condo or townhouse. If it is priced the same as the SFH, the condo/townhouse is actually more expensive. The condo I live in is valued at $80K (though my landlord paid $300K for it a few years ago when it was new) and has a $600/month HOA fee. Granted, that's an extreme case caused by a variety of things that have gone wrong with the building, but a more typical HOA can still add 25% or more to your monthly payment. And unlike a mortgage payment, it will go up each year with inflation--or more if it turns out to be a problem building like mine--and you'll never pay it off.

Condos have other disadvantages like being able to hear your neighbors, getting flooded if someone upstairs sets off this sprinkler, needing permission from the association to do renovations like adding a dishwasher, and if you ever want to move but can't sell, the home owners association can make it very difficult or impossible to rent out your unit. Basically all the disadvantages of apartment living without the freedom to pack up and move when you can't stand it anymore.

At the right price, I'd consider buying a condo, but it would have to be a lot cheaper than a comparable house.

Condo/Townhouse vs. House

Re: Condo/Townhouse vs. House

Choose Another Board

Search Boards