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pros/cons of buying condo vs house?
Hi all,
H and I aren't quite ready to buy property yet but we're starting to seriously consider it while saving. I'm just wondering if you have any input about buying a house vs condo. We live in a HCOL area so condos are more attractive since they are generally a little bit cheaper. However, I can't shake the idea that all of the condo fees are ridiculous. It's several hundred dollars extra a month that doesn't go towards owning the property. I get that it's paying for the convenience of not having to buy a lawn mower, snow blower, etc and keep up the work yourself but I still feel like it is such a waste of $. With 2-3 months worth of the fees, we could probably buy those things ourselves anyway. The long term goal is to have our own house with a yard and all that but at this time there are slim pickings within our price range for those. I'm also worried we would get stuck living next to some crazies. Do you think it is worth it to live in a condo paying the fees for a few years before moving to a bigger place? I feel like once we finally buy a place, I won't want to think about moving again.
Re: pros/cons of buying condo vs house?
Personally, I think you should save for a house and skip the condo. My husband and I live in an apartment right now, but we just bought our first home (moving in August 1st). We purposely lived well below our means in order to save for a house. We basically lived off of my husband's salary and banked 90% of mine for the last 4 years. My husband and I don't make an exorbitant amount of money, but we were able to work with what we have. Keep in mind that renting and then buying a home makes you more desirable because you won't have any contingencies.
But, in the end, it's what is right for you. No one can make that decision but you. You two are the ones that have to live with your decisions. Good Luck!
With the way that the market is right now I would rather buy a house. They are soo cheap compared to what they usually are and I've seen a ton of good deals as well as low mortgage rates.
H and I (both 30) currently live in a condo (this being my second one) and we are hoping to save a ton more in the next year or so before rates go back up. The only bad thing is right now we owe more than the condo is worth so it's going to be a tough sell for us. I am ready to take on all the responsibility? Kinda, sorta for different reasons but he's very motivated so as long as well get a small, low maitnance house we'll be fine. But here's my take on house vs.condo
Condo- no yard work, dealing with neighbors, not enough storage space, posibility of no garage, noise, inconsiderate people, low maintenance, possibility of condo assesments (new roofs, siding), condo fee's
House- More money, more maitenance, something always needs fixing/updating, buying all the extras (lawn equip/supplies), more private, more storage, garage
It's all about what your willing to pay for and put your time into.
But I get tired of dealing with other people's shi*t
Basically all of this. My H & I lived in a co-op and while it served its purpose (in-laws owned it so was cheap and we were able to save a ton of money to buy our own place), in the end, we both grew to hate it. For all of the (negative) reasons listed above. Two more things to add to the list of negatives when owning a condo/co-op: dealing with a 'board' any time you want to do something to your place. like do any renovations/rent it out later/etc. Oh yea, and not having your own laundry - I do know some condos allow you to have your own washer/dryer, but depending on where you are, some don't. So why pay all this money when you have to deal with these things?
It's funny because when it came time for us to buy, my inlaws kept pushing us to buy a co-op and we said hell to the no to that. It took us repeatedly saying this to them too every single time they would hand us a real estate magazine with 'suitable co-ops' circled.
Anyway, OP, you guys just need to weigh out the pros and cons and do what is right for you. I would also consider this though - if you are thinking to have children (or if you already do), make sure you get a big enough place if you do wind up buying a condo. If you currently don't have children, you might not need the extra space now, but eventually you will, so I would just plan ahead for that. This was also another reason why we chose to buy a house - we didn't want to be stuck on a condo and then have to move a few years later because we found ourselves without the space (again). My BIL & SIL are buying a condo now and I have a feeling they are going to regret it once kids come into the picture....
I have done both, owned a condo and now own a home. I bought the condo when I was pregnant with my son, so that's 25 years ago. At that time the purchase price was right and my fees were not that much. After 7 years there I had saved some money, but still needed the money from the sale of the condo to put down on my house (yes, it had appreciated in value). Their particular rules were not that stringent, and I had a basement with my own washer & dryer that I purchased.
I think you should look at this long term, and not "either/or". Sometimes a condo can serve as the springboard to a house later. Because they are cheaper (even with condo fees) you can save a lot during condo ownership, as the market improves, then move into a house. With all the upkeep on a home (if anything goes wrong it's YOUR money), it might make more sense to get the condo now. A lot also depends on your financial situation today and in the future. If the condo is an initial step into home ownership, are you in a financial position to continue to save money, while owning, to move into a house in a few years? Or, if you need to save money for the downpayment on either now, can you save more over time and wait to get a house.
The condo I lived in was townhouse style, in that the 3 floors (basement, main and upper) were sort of stand alone and connected on both sides to other condo owners. Yes there was noise, but I had an older woman on one side and a family on the other. I didn't hear televisions through the walls, but I could hear bangs if they banged the door, etc.
Good luck. It's a decision only you can make depending on what the market is and what style of condos are available, and housing prices.
There are pluses and minuses to both. I've owned a condo for the last nine years and we just bought a house. The monthly maintenance on the home will easily be equal to our monthly assessment fees on the condo. Also, board approval might be needed for a ton of items in a condo scenario, but many homes have HOAs which can also be restrictive.
in the end, we are moving to a home because we are expecting a child and it just makes more sense for our family. However, I can really see the appeal of condo living and probably would have remained on that path if we weren't having kids.
Hate to tell you, but even living in a house, you can still have crazies living next to you. And even if they're not there now, they could buy in later. I have one living across from me now and another set were forcibly evicted a few months ago.
Before you make a decision, I'd check the condo resale values in your area. In some places, condos have depreciated even more than homes, and that indicates trouble for resale.
You may also want to speak with a mortgage broker, especially if you're in an area with significant condo depreciation. Mortgages for condos can be more difficult to get or require more money down because the bank is worried about resale value.
I live in a condo in the Metro Detroit area. DH bought it 14 years ago before he met me. I've lived here for 8 years now & we currently have 2 kids (5 & 3), so we are making it work with kids. Our neighbors have 3 small kids so it's doable. It's hard to give a lot of advice depending on the type & size of condo you're looking at.
our condo is 1,700 sq. feet & has a main floor, upstairs & basement. It's 3 rooms, I have a walk-in closet & 4 bathrooms. We also back up to the commons area so I like that we have a huge backyard (the only con is that we can't keep stuff on the grass, so we have a toy box on our deck, along with a patio set).
we have a lot of storage in our basement and even in our garage. We have a 2 car garage & yes we park both cars in there. I'm super otganized so we have it very organized & even stuff in the rafters.
As far as market value, around here it's picking up & our neighbors just sold theirs for I think more than DH bought his for, so that is encouraging for us. I do live not having to do the lawn or snow. We do plan to get a house in a few years, just saving up (our condo is paid off so that is the nice part since it's not as expensive as houses here)
GL with your choice!
I don't live in a HCOL area and condos are not very popular here. When we were looking for our house we never considered a condo. It is a personal preference and depends on your particular situation. Factors like how long you plan to be there, if you have pets, how high the condo fees are, if you have a disability, etc.
For someone who doesn't have the time or the ability (hence disability mentioned above) a condo is a great option. The condo fees are not meant to be attractive because you don't have to buy the equipment, it is much more to do with not having to spend an hour or more a week out in the yard. You can buy equipment second hand but even new you are talking about less than $500 for a weed eater, lawn mower, blower, and yard tools assuming you don't want a riding mower. You can higher a landscaping company to come once a week for cheaper than most condo fees. Condo fees also cover things like communal workout room, pool, rules enforcement, salaries for staff, and maintenance to pavement, street lights, etc.
Personally we enjoy yard work and spend a great deal of our extra time working outside together. We love it but it's not for everyone. We also have two dogs who need a good sized yard. Sometimes I wish I lived in an HOA so that my neighbors would keep up with their property like we do. Anyways... pros and cons for condos and houses. It just depends what your personal habits and expectations are.