What are the pros and cons of owning a condo?

[Kitty 34]

DH and I have talked for awhile about possibly getting a condo (most likely in Florida) but just recently have seriously started looking at a few.

In Celebration, we see there's a few fairly inexpensive ones.

Even though we have 3 years before we retire, would it be "smart" to purchase one now?

What are some of the hidden costs, etc? We really have NO clue on what we're getting into so I told DH I would go to my best source of info......

 

[Feralpeg]

HOA fees on condos can be very expensive in this area. A friend recently looked at condos in the Metro West area. For a $70k condo, the monthly HOA fee was over $350.

Watch for condos that are part of a big complex that requires a lot of outside maintenance and lawn care. They will charge the cost of this off to the condo owners.

Also, there have been some horror stories in this area recently. Due to people defaulting on their loans or not paying their share of the HOA fees, the condo owners are allocating the share of those unpaid fees to the other condo owners.

If you are thinking of a condo that you will be able to rent out when you are not using it, look carefully at the rules for the area. Some areas do not allow short term rental.

 

[Swan4Me]

Also-you have no control if those fees go up-and they can charge a One Time fee if something major needs to be done-like re-roofing.

 

[prettyblueskies]

We moved out of our condo last year mainly because we were fed up with the association. We loved our home, but the rising costs of dues and the ridiculous demands were just too much. Meetings got really heated and nothing got accomplished because everyone was so frustrated. It just wasn't worth it anymore.

There are a lot of pros. Having the grass cut for you, snow removed (not in Florida I hope!), general maintenence etc.

Everything would have been fine but our board honestly seemed to have no idea what they were doing. There are roofing issues that have been going on since 2009 and still aren't close to being resolved. They raised the monthly dues by about $175 and continue to add on costs because they had to let the first builders go due to poor work and hire new ones and start over. Not to mention the sewer/basement problems that I really don't want to get into.

Don't get me wrong, associations can be great for the community, but I'd ask around before hand just to make sure you know what you're getting into.

 

[MELSMICE]

We live in New York State & own a condo in Bonita Springs, Florida. We we were able to purchase at a great price. We also had paid off our home mortgage before purchasing.

It is in a golf community so there are definitely fees involved. While we are not crazy about the fees because we don't use it as much as we'd like, we knew going in that we were going to pay the fees.

Last year we probably used it for a total of 6 weeks out of the year - 4 different trips total. We also rented it for 3 months & have rented it for 3 months next year also.

We are fortunate enough that my parents & uncle live in the same gated community. My mom & dad tend it when we're not there so we don't have to pay anyone to do that.

Our deciding factors in finally buying were that we knew it was part of our long term plan & the timing was right as far as cost. We know we will be paying fees and while we'd like to get more use out of it throughout the year, we are not ready to retire but when we are, we are that far ahead of the game.

While no one can make the decision for you, if it's the right time and you can afford it I'd recommend it. It's been positive for us.

 

[low-key]

remember Gallagher , he did a bit on Condos, it was funny but it broke down to a bunch of business man needed a good con to make more money, and they thought what would be a good CON to make DOE, and thats wear a condo got its start

 

[Pigeon]

The other big con besides the fees is that your neighbors are really close. I rented one for a time and hated it for that reason. I don't want to hear what goes on in other people's homes.

 

[The Mystery Machine]

Pro's....

Easier to maintain, than a house.
More affordable with bills than a house normally.


Con's....

Special assessments
Fees
Noise from neighbors (that is probably my CON that ranks high on my list.)
Parking

I guess bottom line, if you want a golfing condo community, swimming pools, etc...you pay for that out of your fees, just like any HOA.

Personally I would wait but that is me. I would take the time to keep an eye on the market, watch the condo prices, get used to areas where you want to be and check things out for those few yrs and then when the "right" thing comes along you go for it. Do a ton of comparison shopping.

 

[bicker]

Every "con" is evenly matched with a corresponding "pro". For example: You pay more for maintenance, but someone else is doing the work, either the actual maintenance or finding the person to do it and monitoring their work. Also, there are rules to comply with, but they're rules to keep the place pleasant and looking nice, so you get as much from them as you give up.

Some of the other items mentioned in this thread have nothing to do with condos: For example: Parking and noise - That has to do with the type of housing and the neighborhood - not the type of ownership. You'll face the same issue if you live in a rental apartment or if you live in your own home in an urban area. By the same token, there is a condo here in Burlington (IMAGE) that is single family homes, and you couldn't tell it was a condo without reading the deeds themselves.

 

[The Mystery Machine]

Every "con" is evenly matched with a corresponding "pro". For example: You pay more for maintenance, but someone else is doing the work, either the actual maintenance or finding the person to do it and monitoring their work. Also, there are rules to comply with, but they're rules to keep the place pleasant and looking nice, so you get as much from them as you give up.

Some of the other items mentioned in this thread have nothing to do with condos: For example: Parking and noise - That has to do with the type of housing and the neighborhood - not the type of ownership. You'll face the same issue if you live in a rental apartment or if you live in your own home in an urban area. By the same token, there is a condo here in Burlington (IMAGE) that is single family homes, and you couldn't tell it was a condo without reading the deeds themselves.

My MIL is in a condo and I assure you that she can hear her neighbors upstairs....not sure what you are getting at.

OP should be aware that noise of her neighbors may be an issue since she would be new to "condo life".

Now maybe she will get a condo with better soundproofing or villa-type things OR get an upstairs condo instead of ground floor. Which when people retire, you usually want ground floor.

That was just my 2 cents.

 

[bicker]

My MIL is in a condo and I assure you that she can hear her neighbors upstairs....not sure what you are getting at.

I'm saying that that isn't because she lives in a condo. It's because she lives in a building that has neighbors living upstairs/downstairs from each other.

 

[lastminutemom]

Insurance is very expensive in Florida. My in laws have owned a condo in Fl for many years, decades actually, and the fees have reached a point, especially when a special assessment has been thrown in, that they could really vacation anywhere they wanted for months at a time -- without the hassles of ownership.

If you don't plan to rent yours out, I can't recommend strongly enough that you buy one in a complex that doesn't allow renters.

People who come for the week often have a different attitude towards the property than those who own and stay there longer.

 

[Swan4Me]

Just an FYI- my mom has owned a garden home-attached one story-for 25 years . There is a solid concrete wall between each unit-never had a noise issue

Another relative has a two story unit-attached- no noise issue-and there are college kids on one side-so you know they are playing music

I think the key issue for noise is not to have a condo building that has people above or below you.

 

[Swan4Me]

In

If you don't plan to rent yours out, I can't recommend strongly enough that you buy one in a complex that doesn't allow renters.

People who come for the week often have a different attitude towards the property than those who own and stay there longer.

Great point!

 

[bicker]

That's a good point, and really it applies anywhere, not just Florida. I know friends who own a condo on the Jersey shore face the same issues.

(And that points out another one of those good-with-the-bad things: In a regular neighborhood, in a vacation area, there is much less assurance against neighbors turning their home into a by-the-week rental house, while condos seeking to keep a more residential bent to them can impose such limitations over again above what the municipality might impose.)

 

[dakcp2001]

Suze Orman has a new book called The Money Class which has a section about what to look out for and what questions to ask when buying a condo. It was some things I had never thought of. Look on half dot com and get it used.

 

[MELSMICE]

If you don't plan to rent yours out, I can't recommend strongly enough that you buy one in a complex that doesn't allow renters.

People who come for the week often have a different attitude towards the property than those who own and stay there longer.

Good point. Ours can only be rented for a month or more.

 

[Micca]

One advantage to buying now: Prices would seem to be near rock-bottom. Housing prices in Fla were soaring before the recession. My hunch (and that's literally all it is) would be that when the economy recovers, prices in the sun belt will be on the rise again. Millions of baby boomers are getting ready to find a sunny place to go.

 

[MagicKingdom05]

We sold our Condo in October (due to growing family) and couldn't be happier. We had what has to be the worst condo association ever. I would check out the condo association before buying a condo.