Build onto current garage, or invest in car condo?

[JMcLellan]

I figured the car folks on here might have some advice on a couple options I am considering to expand my man-cave space and amenities.

There is a car condo complex current being built about 20 minutes west of my house. I could go in on one and for about $210 to $220K and would get about 1400 sq feet-- 1100 of floor space plus 300 sq feet mezzanine area. Drywall (not taped or painted), in floor heating, bathroom, shower, lighting, and garage door would be included. My wife and kids made it clear that they don't see themselves going out to the condo that much if at all.

Or I could get bids on adding a 2nd level onto my current garage at home. I have no idea the cost but would love to have more space to install some office space, golf simulator, etc. Current garage is about 550 sq feet and the ceilings are about 9 foot tall so it is pretty limiting. This option would be more family friendly which I prefer.

What would you do??

[spazzyfry123]

What ongoing costs will you see with the condo? I'm assuming you do the expansion at your current residence and you're done (maybe a slight uptick in taxes if you go that route?). With the condo, are there monthly/annual HOA dues, taxes, maintenance in addition to the $220k?

For value, I have to imagine for you to add an additional 550 sqft (assuming that's what you get with possible roof pitch allowing much less or knee walls), the $/ft will be much higher than the 1400sqft you get for $220k. $160/ft ain't bad turn-key.

[vreihen16]

My wife is a car person, and demands a 10-car garage with a lift. Both of your options seem a bit small to me.....

[Car-Addicted]

Sell your house. Get a couple acres, build a 100' x 200' steel building with heat and a bathroom. The wife and kids will adapt.

[JMcLellan]

Originally Posted by vreihen16

My wife is a car person, and demands a 10-car garage with a lift. Both of your options seem a bit small to me.....

If your wife ever writes a book about her car passion I'm buying the first copy and having my wife read it.

[JMcLellan]

Originally Posted by spazzyfry123

What ongoing costs will you see with the condo? I'm assuming you do the expansion at your current residence and you're done (maybe a slight uptick in taxes if you go that route?). With the condo, are there monthly/annual HOA dues, taxes, maintenance in addition to the $220k?

For value, I have to imagine for you to add an additional 550 sqft (assuming that's what you get with possible roof pitch allowing much less or knee walls), the $/ft will be much higher than the 1400sqft you get for $220k. $160/ft ain't bad turn-key.

$100 per month HOA dues and when I asked the owner about their variability he expects them to go down over the next few years as he gets more occupants and higher HOA revenue base, but long term (10+ years out) they will go up as maintenance costs go up. The plan is for 10 condo buildings and only 3 are built so far. Current estimated county tax rate is $1800 per year per condo.

[RickFLM4]

Originally Posted by JMcLellan

$100 per month HOA dues and when I asked the owner about their variability he expects them to go down over the next few years as he gets more occupants and higher HOA revenue base, but long term (10+ years out) they will go up as maintenance costs go up. The plan is for 10 condo buildings and only 3 are built so far. Current estimated county tax rate is $1800 per year per condo.

Dues almost never go down especially in new construction. Developers always set them low to sell and then the owners self govern and figure out improvements are needed and maintenance costs are higher. $100 isn’t a bad starting place.

Personally, I’d stick with the home construction answer if it provides enough space. Family friendly and easier access for use plus value add to home. If it doesn’t provide enough space, then there’s only one answer.

[tranquility]

Originally Posted by RickFLM4

Dues almost never go down especially in new construction. Developers always set them low to sell and then the owners self govern and figure out improvements are needed and maintenance costs are higher. $100 isn’t a bad starting place.

Personally, I’d stick with the home construction answer if it provides enough space. Family friendly and easier access for use plus value add to home. If it doesn’t provide enough space, then there’s only one answer.

Exactly, I'd wish for that to be true but unfortunately those fees always go up, like scamflation, always making our purchasing power decrease to keep the working class squarely in the vise...but I digress

Anyway, what he said, all positives unless OP wants way more space.

[Bruuuce]

Not sure what I think about car condos not associated with some sort of cool location, like a track. Thinking they have the potential to turn into work shops, vs a bit of a luxury location.

You are in the cold part of the country and people need to store things indoors, or want to so that could help with long term value. But I think overall the concept is not tried and true long term value prop. I have looked into them a few times.

Does the HOA prevent the number of overnight stays, or are they full time live in capable. This could severely impact the long term value. I know I would have considered one if it was full time livable as a temporary solution while looking for a home. Or single it would have been all I needed. But the rules were against that. Post being, a limited use building does not feel like a good investment.

My three somewhat random thoughts, but having a place the family does not want to go with you, could be priceless.

Then of course, just buy the house you want with the room you need. Problem is if you are into cars, there is never enough garage.

[spazzyfry123]

Originally Posted by Bruuuce

Not sure what I think about car condos not associated with some sort of cool location, like a track. Thinking they have the potential to turn into work shops, vs a bit of a luxury location.

You are in the cold part of the country and people need to store things indoors, or want to so that could help with long term value. But I think overall the concept is not tried and true long term value prop. I have looked into them a few times.

Does the HOA prevent the number of overnight stays, or are they full time live in capable. This could severely impact the long term value. I know I would have considered one if it was full time livable as a temporary solution while looking for a home. Or single it would have been all I needed. But the rules were against that. Post being, a limited use building does not feel like a good investment.

My three somewhat random thoughts, but having a place the family does not want to go with you, could be priceless.

Then of course, just buy the house you want with the room you need. Problem is if you are into cars, there is never enough garage.

These ones are fun.

https://www.atlantamotorsportspark.c...k-side-condos/

[JMcLellan]

Originally Posted by Bruuuce

Not sure what I think about car condos not associated with some sort of cool location, like a track. Thinking they have the potential to turn into work shops, vs a bit of a luxury location.

You are in the cold part of the country and people need to store things indoors, or want to so that could help with long term value. But I think overall the concept is not tried and true long term value prop. I have looked into them a few times.

Does the HOA prevent the number of overnight stays, or are they full time live in capable. This could severely impact the long term value. I know I would have considered one if it was full time livable as a temporary solution while looking for a home. Or single it would have been all I needed. But the rules were against that. Post being, a limited use building does not feel like a good investment.

My three somewhat random thoughts, but having a place the family does not want to go with you, could be priceless.

Then of course, just buy the house you want with the room you need. Problem is if you are into cars, there is never enough garage.

The buildings are zoned as commercial, non-residential, so you cannot live there. Sounds like the norm is that some folks will stay there a night or two on the weekends and no one cares. But yes having them zoned as commercial vs residential lessens the appreciation upside. However, they are located in a county that is anticipating 30 to 40% population growth by 2040. There is already a severe shortage of single family housing and there are new apartment buildings all over the place. My logic is that in the coming years people will be craving additional space for storage so something like these would go up in value. However, not as much upside as single family homes like my current one.

Buying a different home with more space isn't feasible with the current state of housing inventory and interest rates. We got into our place in 2015 for $350k, and we were able to capitalize on a low rate refi so we are sitting at 2.99%. If I were to buy a similar house to mine in our school district I would be paying a minimum of $650k with a much higher interest rate. To get the dream home with all the space we are talking $850K plus. No thanks.

[JMcLellan]

Originally Posted by spazzyfry123

These ones are fun.

https://www.atlantamotorsportspark.c...k-side-condos/

Holy crap sign me up for one! That is the dream.

[spazzyfry123]

Originally Posted by JMcLellan

The buildings are zoned as commercial, non-residential, so you cannot live there. Sounds like the norm is that some folks will stay there a night or two on the weekends and no one cares. But yes having them zoned as commercial vs residential lessens the appreciation upside. However, they are located in a county that is anticipating 30 to 40% population growth by 2040. There is already a severe shortage of single family housing and there are new apartment buildings all over the place. My logic is that in the coming years people will be craving additional space for storage so something like these would go up in value. However, not as much upside as single family homes like my current one.

Buying a different home with more space isn't feasible with the current state of housing inventory and interest rates. We got into our place in 2015 for $350k, and we were able to capitalize on a low rate refi so we are sitting at 2.99%. If I were to buy a similar house to mine in our school district I would be paying a minimum of $650k with a much higher interest rate. To get the dream home with all the space we are talking $850K plus. No thanks.

How will you be paying for the $220k condo? Or the expansion for that matter. Not asking for the "humble brag" effect, but I have to imagine the expansion is more cash-friendly than a condo. With interest rates high for a HELOC or outright mortgage, high percent feels less of a burn on a lower principal. If cash is an option for the expansion, but not for the condo, there are additional, significant savings there as well.

[spazzyfry123]

Originally Posted by JMcLellan

Holy crap sign me up for one! That is the dream.

The facility is sweet, too. I've been there numerous times - right down the road from where I live. I have some property further east that I'm looking to build on, but you can live full time in these condos. Knowing the cost to build right now, I'm almost more inclined to pick one of these up for a "short term" solution that I know will appreciate.

[JMcLellan]

Originally Posted by spazzyfry123

How will you be paying for the $220k condo? Or the expansion for that matter. Not asking for the "humble brag" effect, but I have to imagine the expansion is more cash-friendly than a condo. With interest rates high for a HELOC or outright mortgage, high percent feels less of a burn on a lower principal. If cash is an option for the expansion, but not for the condo, there are additional, significant savings there as well.

I haven't gotten that far in the process. I would assume the condo would be part cash, part mortgage. Then would plan to refi down if rates go back down. For the current house upgrades would be part cash, part HELOC most likely. Though I don't know the rate variability/flex on a HELOC if interest rates go back down.