Would you rather... (a condo vs. single-family home question)

[Artygal90]

Currently scoping out neighborhoods and what housing is available in our price range for our first home purchase next year. We had settled on trying to get into a townhome-style condo to start, but then the cutest little house that is almost in our theoretical budget came on the market in a neighborhood we like. Now I feel torn between two different options and need the hive mind's input! (DH is sick and tired of me bugging him about this, especially since the school question is at minimum 7 years away)

Imagine you have these two properties you could buy. Which would you say is the better purchase long-term?

Option A: A 3/1.5 single-family home zoned to "meh" schools - 5 out of 10 on GreatSchools. ~1200 square feet with a yard and a one-car garage. Walking distance to a shopping center.

Option B: A 2/1.5 condo zoned to "great" schools - 8 out of 10 on GreatSchools. ~1200 square feet with a patio and a carport for 2 cars. Walking distance to a park, library, community pool, and shopping center.

Assume commutes, cosmetic updates, general neighborhood "feel", and the monthly payments (including HOA and/or property taxes) are about the same, and that you have the finances to cover the higher maintenance costs of the SFH. Which ends up being more important to you - easy access to good* schools and more amenities, or the extra space and freedom that comes with a single-family home?

These options are based on actual listings in my area, but this discussion is hypothetical right now, we don't have a downpayment together yet. Just wanted to throw it out there and see what everyone thinks!



*and yes, I know the Great Schools metrics are based on questionable standardized testing practices and a kid's educational success is more about the home environment than a "great" vs. a "meh" school per se, but I know not all homebuyers feel that way. Interested to see what everyone thinks!

 

[low-key]

I weary of Condos , my sister had a great one and I really liked it, but its still bying an apartment where the payments never end

 

[Southernmiss]

I'd have to go inside the houses and see which feels more like home.

Also, you can look at your States department of education for recent school test scores and state ratings. More important to me than Great Schools.

 

[kaytieeldr]

I'm lazy and irresponsible. I'd go for the condo.

 

[Artygal90]

I'm lazy and irresponsible. I'd go for the condo.

LOL I appreciate your honesty! I too am sometimes lazy and irresponsible (actually, that sounds so judgemental...let's call it "laid back" and "easy going" )

Would a condo interest you more because of the lower maintenance requirements - not having to clear gutters and mow the lawn, that kind of thing?

 

[Mirielle]

DH and I found an incredible condo years ago and I was on fire for it. Price was just too good to be true for the area and all the fabulous amenities it offered. When we got down to going over paperwork with the realtor, we discovered WHY this was such an incredible deal "on the surface". Condo board had voted for new roofs to be put on all residential buildings and they had selected the roofing company of their choice. The cost of new roof was added to monthly condo fees which had recently been raised to an unreasonable amount. Many residents had found it be more than they could afford and were selling out. The unit we were looking at had no damage and DID NOT need a new roof, but the condo board wanted ALL the condos to match. We were told by residents currently living there that condo fees went up and up and up and no ceiling was in sight. We left and never considered a condo again.

 

[Mackenzie Click-Mickelson]

At this point in my life I have zero interest in sharing walls again but that's just me. I love having a yard and my own space. That being said where we chose to build our house the school district was an important part of that decision. It sounds like though you have a lot less options out there than we did though.

I would agree on doing more research into the schools. I should say for us it was about the district not a specified school itself.

You said next year....what part of next year? I ask because is this something that it's really just these two properties?

 

[Artygal90]

DH and I found an incredible condo years ago and I was on fire for it. Price was just too good to be true for the area and all the fabulous amenities it offered. When we got down to going over paperwork with the realtor, we discovered WHY this was such an incredible deal "on the surface". Condo board had voted for new roofs to be put on all residential buildings and they had selected the roofing company of their choice. The cost of new roof was added to monthly condo fees which had recently been raised to an unreasonable amount. Many residents had found it be more than they could afford and were selling out. The unit we were looking at had no damage and DID NOT need a new roof, but the condo board wanted ALL the condos to match. We were told by residents currently living there that condo fees went up and up and up and no ceiling was in sight. We left and never considered a condo again.

Yikes! So was this something you discovered after having put in an offer? Or after touring the property? This is one of my major worries about somewhere with an HOA!

 

[kaytieeldr]

LOL I appreciate your honesty! I too am sometimes lazy and irresponsible (actually, that sounds so judgemental...let's call it "laid back" and "easy going" )

Would a condo interest you more because of the lower maintenance requirements - not having to clear gutters and mow the lawn, that kind of thing?

Yes, exactly.

 

[Mirielle]

Yikes! So was this something you discovered after having put in an offer? Or after touring the property? This is one of my major worries about somewhere with an HOA!

We were getting ready to make an offer! No, the realtor had to inform us of what was coming because we had inquired about the maintenance fees and any other fee we could be charged in order to live there. After we walked away from the deal, people were talking around town about this particular property and how SO MANY units had recently come up for sale. Seems someone on the board of directors had a family member who owned a roofing company and the board approved his company for all the new roofing to be done...at an inflated rate! There was little the residents could do. Complain and say it was too high? Sure, but likely most didn't have the time or resources to fight it. Bad situation.

 

[kaytieeldr]

Oh, the school thing. My nephew's parents were looking for a condo before starting a family, but not in the city where we all grew up and mostly all went to school. Because they didn't feel we have a good school system. They found a complex in the neighboring town, until they found out only the address was there. The units were all in our city, so any children attended this school system.

They moved several towns away, to a place with (sarcasm alert) such good schools that his mother insisted he attend private high school fifty miles away. Not a boarding school, either.

 

[Artygal90]

At this point in my life I have zero interest in sharing walls again but that's just me. I love having a yard and my own space. That being said where we chose to build our house the school district was an important part of that decision. It sounds like though you have a lot less options out there than we did though.

I would agree on doing more research into the schools.

You said next year....what part of next year? I ask because is this something that it's really just these two properties?

The goal is to put up a Christmas tree in a home we own next year, but besides that wish there's no particular rush We'll have at least a small downpayment together by the end of March and will keep adding to it throughout the year. I've been watching this particular neighborhood a while and feel like it's the best combo of location and value. A condo similar to the one I described above pops up every month or two - more in the spring. Affordable single-family homes in good shape in the same area are harder to come by, which is why this particular house is piquing my interest. I'm sure another one will come along eventually if we decide to go that route. I'm just an impatient person.

Unfortunately housing in my medium-COL city has shot up in price in the last few years as high-earning people relocate from very HCOL areas. Good for homeowners, I guess, but bad for anyone making a normal-sized income trying to get into the market for the first time. Most people with our income looking to buy move out to the suburbs but we really don't want to commute that far. Also, the suburbs aren't as affordable as they used to be! Recently the market has been showing signs of leveling off some (longer days on market, price drops, etc.) so I'm holding out hope we won't get priced out.

 

[dotfurio]

I would prefer a single family home. I don't want to share walls with neighbors, or be restricted in what I can do to the outside, and I'd want my own yard bigger than a patio. In the example choice I'd definitely choose the garage over the carport (although some condos come with garages). I'd probably never use the community pool. I don't mind the extra maintenance of having a house and yard.

 

[lovin'fl]

Condo for 3 reasons. One is that the HOA likely will take care of outside maintenance/lawn care. Two is it sounds like you have no kids yet. If no kids or just 1 baby then you can do a smaller home/yard for quite a while. Three is that better schools will help with reselling (we lived in same town as SIL...about 2-3 miles away). We both had houses listed at same time. Her house was newer and nicer and a little bigger. But our homes were districted to different high schools and our HS was a good desired one, hers was not (she sent her kids to private school). Anyway, she had her house listed for a touch more than ours. Our house sold day 2 on the market for almost list price. Hers sat for several months and they had to lower price quite a bit. So always go for better school system, if not for your own kids use, then for resale purposes.

Currently in a townhome (for 1.5 years now) with an HOA. I love that they maintain everything. They cut grass, get up leaves, mulch, power wash, clean gutters, fertilize and even fully painted the outside this summer.

Also wanted to add that our HOA dues have not climbed up and are reasonably low at $250/month. Includes use of the community pool.

 

[dyna]

Condo watch the maintence and HOA fees usually go up at least once a year.

If you decide later to start a family would you want your own house and yard?

Two personal things I have personally encountered.

1. Public wading pool for the kids it was emptied daily and less than a block from my home. It was GREAT until a little boy about 4 yrs old pulled down his pants and Pee'd in my 2 yr olds face....from that day forward we had our own pool.
2. When DH an I 1st moved to FL we moved to a community with a HOA it was 250.00 a month for the HOA at that time. We soon moved it was also a 55+ plus community DH felt like he was in a holding tank waiting to die as people kept dying all around us some of them no older than DH some older. I still have friends in that community in 5 yrs that same HOA has jumped to 550.00 a month in the same community that was OK but not great 7 yrs ago but homes are not being kept up, streets are worse, privacy fence around community blew away and was replaced by little bushes that has not grown bigger in 5 yrs even tho they was supposed to.

 

[Disney_Alli]

With our lifestyle hubby and I prefer our townhouse and our choice to remain childless we don't really feel a need for a full yard. Also since we both work nights we like that all the outside maintenance is taken care of for us. My sister has a toddler and they moved from a townhouse to a SFH last year to give him a real yard instead of a playground across the street.

 

[powellrj]

We moved to the area where the school was we wanted our kids to attend. Both of our boys attended the school only to have the boundaries changed before Dd got there. Luckily we have open boundaries and we were able to pick a good school for her to attend.

 

[Pea-n-Me]

Good schools are always a plus whether you have children attending or not, because they positively influence property values.

I LOVE the sound of your Option B neighborhood, but I'd have to put the brakes on the 2 bedrooms if I had any inkling of starting a family in the future, because in that situation I'd want to have at least 3 bedrooms. Life can be funny, you think you'll buy a starter house, but circumstances come up and you may wind up staying in your starter house longer than you expected. That happened to us. (Still in our starter house!) I know a young family that started out with a 2BR home and now, on child #2, it's very tight and they have to pay for monthly storage because they have nowhere to put anything. I also think you'd enjoy having a little yard of your own when/if you have kids, or even a dog. Think through all the pros and cons of condo living and see if it's right for you. If it is, and you really like the neighborhood, keep your eye out for a 3BR condo there. Start to talk to some real estate agents, go to Open Houses, etc. That will help motivate you to save so you can get into something relatively soon!

Good luck!

PS it's not the end of the world to have to drive to a park, pool or shopping, but it is really nice to be able to walk, especially if you're pushing a stroller or walking a dog, etc. Think long and hard about giving it up if you know that's what you really want. (Although, as with the pp who gave up using the public pool, there will always be unforeseen things you encounter that you may not like almost anywhere you go!)

 

[NYCgrrl]

As a long term investment, my money would veer towards Option B based on your description although I don't know enough about the "Great School" website to judge it's worthiness. I tend to use municipal, county,and state sites for that information mixed with better known media sites. It has more cultural attractions in place which with proper endownments and building maintenance hold their overall value as it relates to property value better than shopping malls.

The 2 bedrooms vs 3 decision doesn't phase me this far in advance since in a perfect world the B property would hold it's value longer than the A.

 

[HopperFan]

Imagine you have these two properties you could buy. Which would you say is the better purchase long-term?

Option A: A 3/1.5 single-family home zoned to "meh" schools - 5 out of 10 on GreatSchools. ~1200 square feet with a yard and a one-car garage. Walking distance to a shopping center.

Option B: A 2/1.5 condo zoned to "great" schools - 8 out of 10 on GreatSchools. ~1200 square feet with a patio and a carport for 2 cars. Walking distance to a park, library, community pool, and shopping center.

Assume commutes, cosmetic updates, general neighborhood "feel", and the monthly payments (including HOA and/or property taxes) are about the same, and that you have the finances to cover the higher maintenance costs of the SFH. Which ends up being more important to you - easy access to good* schools and more amenities, or the extra space and freedom that comes with a single-family home?

These options are based on actual listings in my area, but this discussion is hypothetical right now, we don't have a downpayment together yet. Just wanted to throw it out there and see what everyone thinks!



*and yes, I know the Great Schools metrics are based on questionable standardized testing practices and a kid's educational success is more about the home environment than a "great" vs. a "meh" school per se, but I know not all homebuyers feel that way. Interested to see what everyone thinks!

Have one of each. There are pluses and minuses to both types of housing.

It is all about location in real estate; and if you are talking long term, you have to imagine which you can live in long term. House life and Condo life are completely different and there are many things to think about with each ... and what you will be comfortable with. I enjoy our condo, but I love the privacy of our home.

With our house we are responsible for EVERYTHING; the interior, the exterior, the yard, all utilities, all insurance, full taxes etc.

With the condo we are responsible for the INSIDE; inside insurance only, no yardwork required, some utilities included, all amenities taken care of, lower taxes because we do not own the land, lower utilities with shared walls*.

BUT with a house you are in control of your own destiny; with a condo there is a board and financials to worry about. Make sure you ask for a complete financial statement from the COA, google them, make sure the realtor has researched the community and ask about any assessments and for how long. Some states you can even inquire with the state as to their financial standing.

I searched for a second house for 10 years, and ended up with a condo. Research and number crunching are key to making the right decision if looking for a long term or to be sure it is sellable for a short term.

*We are in FL with concrete block and thick concrete block between us. Very insulating for noise and temperatures.