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

[diznygirl]

I like being in charge of my own destiny in a house. Condo Associations get to decide on landscape companies and maintenance. Like the previous poster noted, if they decide you need a new roof then you pay for it when they say and how much they say. Need maintenance? Same. Landscaping? Same. Don't like the landscapers? Too bad. You can't change companies.

With a house I get to hire who I want when I want. The monthly condo fee would go toward my own decisions.

 

[STLDisney_Freak]

I'd take the single family even with the "meh" school before I would ever share a wall (again).

I second this.

 

[mnrose]

Hard call. If you are thinking about future kids, choose the school district. It matters for re-sale more than anything else.

Also, owning a home comes with all sorts of headaches for a first time homeowner....maintenance, things that break, etc. It can be more than you think and can have a real impact on finances. Those worries don't exist with a condo.

But, I also like owning single family homes so I get the appeal.

ETA: We are in the process of closing on a condo for my son to live in while he completes college. It will be cheaper than paying dorm costs and it's WAY cheaper than renting an apartment in the area of this university, even if we "lose" money on the purchase price. Not all condo associations are created equally. This one comes very well managed, with a very healthy reserve fund (things I would definitely want to know before buying into any condo). They JUST completed a new HVAC system for the building, so the reserve still being healthy is impressive. The HOA dues are very reasonable and include heat, electricity, water, sewer, a nice health club and pool, cable TV AND internet. It's $416 a month. You'd pay about that much, or more, for those items on a stand alone basis in a home. I think it's a bargain.

 

[barkley]

i remember the first time something broke down in the first home dh i owned we were likewhadda we do? we MISS having a landlord to deal with this (and landscaping and maintainance....)

flash forward about 15 years and we are back in a rental b/c we sold our home and are waiting on our new one and something breaks down whadda we do? because we have to call the landlord to get it taken care of....on..........her...........timeline. we MISSED being able to take care of stuff on ours (and at what we thought was reasonable cost).

my point-figure out if you want something where someone else deals with the stuff but understand that in condos and such that means those entities have a degree of control over you. they can decide if everyone needs new windows and arbitrarily pass on a fee increase or that the quieter hvac unit that would benefit your condo doesn't meet their criteria so you have to stick with noisy/more expensive to operate one. if you have a home, yes you've got the expenses but you can also set up your own 'dues' and set aside a set amount each month so that you can cover the costs when they arise (i do this-right now i'm paying for $600 in propane and $400 in appliance repair w/ the 'dues' i've put away a little at a time over the past 12 months so it's no hit to my ongoing budget).

i like living in a house, don't like sharing walls. i like to be able to call the shots on how/when i landscape, when i replace or upgrade an item let alone the freaking color of my christmas lights or 'publicly viewable' flowering plants teeth: sorry but we've had international media coverage in nearing areas b/c of hoa disputes on these topics).

 

[DVCjj]

Single family home and hiring help for maintenance if need be.

Much prefer not having common walls with neighbors.

 

[bcla]

It really depends on the situation. As someone who has dealt with a tiny HOA, it can be a pain when people start arguing over little things. In a big HOA it might even get more contentious.

However, my ownership never really felt that different than owning a detached house other than a few things. Insurance (outside of requiring a separate walls-in policy) was taken care of as well as other stuff handled by the HOA. Now it would be a lot different if it involved stuff like security, gated access, etc.

My townhouse has a single shared wall and the neighbors were always extremely quiet. Most of the owners have been there for a while, although some have been rented out.

 

[barkley]

nsurance (outside of requiring a separate walls-in policy) was taken care of as well as other stuff handled by the HOA

how does that work for as far as shopping for better rates? i periodically check different companies and have gotten great savings on my other insurance products by changing but it's also b/c i bundle all my products w/one carrier which i couldn't do if the hoa was paying it/picking the carrier for my homeowners.

 

[bcla]

how does that work for as far as shopping for better rates? i periodically check different companies and have gotten great savings on my other insurance products by changing but it's also b/c i bundle all my products w/one carrier which i couldn't do if the hoa was paying it/picking the carrier for my homeowners.

Well - I don't live in the house any more. I remember I was paying less than $300/yr for a walls-in landlord policy, which also included personal liability. After I refinanced my home it was required to be selected by the lender with an amount deducted via monthly escrow, which was mostly for property taxes.

I pay $200/month in HOA dues, and the biggest annual HOA expense is insurance. I remember seeing a bill at an HOA meeting, and it was less than $9000 for everything including earthquake insurance. All our units are valued at over 7 figures, so this is pretty reasonable. I pay l way more than that, even without earthquake insurance.

 

[North of Mouse]

I'd take the house without question!! We do not like condos, townhouses, apartments, duplexes, etc. anything connected by walls to other people - have seen way too many issues - one person's carelessness burning several complete units, loud obnoxious neighbors, loud dogs, etc.

I'd not worry at all about schools as it's almost 100% you wouldn't stay in first dwelling that long. Good luck!!

 

[barkley]

Well - I don't live in the house any more. I remember I was paying less than $300/yr for a walls-in landlord policy, which also included personal liability. After I refinanced my home it was required to be selected by the lender with an amount deducted via monthly escrow, which was mostly for property taxes.

I pay $200/month in HOA dues, and the biggest annual HOA expense is insurance. I remember seeing a bill at an HOA meeting, and it was less than $9000 for everything including earthquake insurance. All our units are valued at over 7 figures, so this is pretty reasonable. I pay l way more than that, even without earthquake insurance.

i hear that rates are going WAY UP as well, that's if your company doesn't outright announce they aren't renewing policies. family living in different parts of california are all reporting that w/recent events many are getting notices that their homeowner's insurance companies are not renewing despite living nowhere near impacted areas/years of fully paid premiums and no claims.

 

[PollyannaMom]

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?

Walking distance to the library would probably have me in the condo tomorrow!

DH and I discovered over the years that the excitement of being new homeowners wears off, and we really hate maintenance. At this point, we can afford to hire the lawn done, but for a long time, our "landscaping" (such as it was) looked really amateurish...and behind schedule most of the time. So that would be a factor toward the condo for me as well.

The shared wall thing doesn't bother me as far as the social factor goes. I tend (see the screen name) to assume proximity means instant friends without a lot of effort on my part. But I do have a nagging fear of fire in a non-single home. - I don't like the safety factors out of my control, so ultimately that would probably be a vote for the stand-alone house.

The HOA could go either way. I know people who avoid them at all costs and others who wouldn't buy even a SFH without one. It can really be a blessing or a curse.

Future family size is hard to go on as well. As they say in the song, "Ya make your plans and ya hear God laughin'..." And the school ratings can change pretty quickly, so while I would definitely give it some weight, I wouldn't let it overshadow the other factors.

In my experience, you really just "know" when you walk into a place that it's "home".

 

[Hrhpd]

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!

Absolutely 100% single family home. As some have stated above, with a condo, you cannot control charges.

A Coworker just bought a cute little condo. The realtor did not disclose that there were shared capital improvements fees pending. She now has a lawyer to fight the $5,000 bill she was presented for her share of the new roofs the after closing.

At least with your own house, you are only responsible for your own roof.

 

[mnrose]

Absolutely 100% single family home. As some have stated above, with a condo, you cannot control charges.

A Coworker just bought a cute little condo. The realtor did not disclose that there were shared capital improvements fees pending. She now has a lawyer to fight the $5,000 bill she was presented for her share of the new roofs the after closing.

At least with your own house, you are only responsible for your own roof.

Yes, but $5000 would be cheap for almost any roof on a single family dwelling. It's not like you avoid that expense with a SF home.

 

[tvguy]

Yes, but $5000 would be cheap for almost any roof on a single family dwelling. It's not like you avoid that expense with a SF home.

One of the condos my daughter looked at had just added $500 a month onto the HOA fees to pay for new roofs. The fee will be in place for 2 years. How on earth a 30 year old HOA wasn't setting side money for an expense they knew was coming when the units were built is beyond me. At least with a private house, you have the option of financing the new roof cost over more than 2 years.

 

[Hrhpd]

Yes, but $5000 would be cheap for almost any roof on a single family dwelling. It's not like you avoid that expense with a SF home.

That is for one building. There are 10 buildings in the complex that will need roofs and the price probably will go up. So, with 10 bulidings, 10x5=$50,000. Our new roof cost $17,000, we paid 0 because it was due to hail damage and insurance covered it. And we had control over what kind of roof, its warranty life, etc And roofs aren't the only things that can go wrong.

IF I were ever to buy a condo, and I would only consider one for a vacation home, I would make sure I did a thorough investigation of the HOA's finances. Have the roofs, landscaping ( been maintained, and how often? Is there money set aside for catastrophic events such as a weather event that will do damage. Are the water, sewer, any other large items been inspected yearly and maintained? Just too much to have to share with other people. If my water line breaks on my property, it is going to cost me around $20,000 to fix, but my insurance is going to kick in. I would get to choose the contractor, I would be in control of fixing it. If it breaks in a condo, I would be at the mercy of someone else, who may not be financially concerned about the homeowner's funds, making decisions.

 

[bcla]

One of the condos my daughter looked at had just added $500 a month onto the HOA fees to pay for new roofs. The fee will be in place for 2 years. How on earth a 30 year old HOA wasn't setting side money for an expense they knew was coming when the units were built is beyond me. At least with a private house, you have the option of financing the new roof cost over more than 2 years.

That was the issue we had, and why we upped the HOA dues, but never by that much. We also had a few issues with cash flow and voted for a special assessment once. A couple of the owners weren't too happy about it, but it was better than becoming insolvent. The other thing I remember once was being asked to front several months' HOA dues at once. We needed about half the owners to do that, and the bills would stop for those months.

The other pain was when the banks handling our HOA account (including billing) got out of the business. A big bank bought out the local bank that handled it for decades, and kept on doing it for a few years until they decided that they wanted to get out of that business. It was odd since they handled it out of a single branch until they switched to handling it from a large processing center. I heard during an HOA meeting that the bank only had two HOA clients. Then we switched to another large bank, which a couple of years later had a minimum balance to avoid fees that would have eaten up more than half of our HOA dues. We were lucky to find a small bank that had no such rules, but would also only accept monthly funds via auto-pay.

 

[slpeters]

We're condo people. Sure we have condo fees but they cover insurance, cable tv, internet, heat, water, insurance, maintenance, valets, lifeguards, gardeners, doormen. They even contest everyone's property taxes (both communal and individual) each year. It's definitely worth it for us. Plus I don't see how we'd have our eighteenth floor view on our own. The building is solidly constructed and I've literally never heard another owner from within our unit. It's the only place we've ever owned. I remember when we bought it my Mother gave me the whole "homeowner" speech, so a couple months in when we had a problem with the kitchen sink I called down to the door captain and explained that I was new to the neighborhood and asked if they might be able to suggest a plumber as we were having an issue with our kitchen sink. There was a long pause before they came back with "Mr. ___, is there a reason you don't want us to just come fix it?" That sounded lovely to me. When we had a live Christmas tree they would send up two large men with a tarp to wrap it up and take it out when you are done--so as not to get needles in the public areas. The association has a big Christmas party and a pool party each year. It's nice and, frankly, for our lifestyle it's nice to have all the maintenance and the like on autopilot. You have to be careful about the finances and reserves of the association but if you know what you are getting into there's very real bargaining power in a large association. I feel pretty confident that if we were to somehow contract out all the services we receive they would actually be significantly more than we pay.

 

[aristocatz]

I would definitely go for the house. I value my privacy and I wouldn't ever want to get deal with condo association drama.

 

[North of Mouse]

Hate HOA's - lived 6 yrs. (because of transfer) in one subdivision that had one and there was enough drama to last us a lifetime. We now live (17 yrs) in a beautiful subdivision outside city limits with 1-3 acre lots and love the freedom of doing our own thing. Yes, we do have protective covenants in place, but nothing has been needed to enforce them.

Also, as has been stated, will not share a wall, nor be told when, where, how for outside landscaping, maintenance.

 

[bigbabyblues]

Single Family home, no HOA.

There are no condos where I live, and I only know of 1 neighborhood with an HOA. We stayed in a condo for our last WDW trip, and it was nice for 10 days. However, I wouldn't want to be that close to my neighbors. I like my own house that doesn't share a wall, ceiling, floor, or anything else with anyone else. I can't hear my neighbors, I don't have to worry about my dogs barking and bothering anyone else, or my kids being loud and bothering anyone. I want to park in my own driveway and not have to worry about it.