Buying a condo

[Hawkeye]

Originally Posted by khaye1

want a real tip? don't get a condo! I'm stuck in one, and it's gonna take awhile until I make my investment back...Condo's don't appreciate as fast as single family homes do. They also require HOA fees along with some rules and regulations. You also outgrow it faster than you would think.

I definitely agree with this. I am stuck in a condo where I have no say how my monthly dues increase apparently and new rules are made all the time. I hate it, looking to buy a house instead right now for about the same $$$, but I know I will be a lot happier with a house.

[Feyd]

Originally Posted by Hawkeye

I definitely agree with this. I am stuck in a condo where I have no say how my monthly dues increase apparently and new rules are made all the time. I hate it, looking to buy a house instead right now for about the same $$$, but I know I will be a lot happier with a house.

I generally agree with this, but ONLY the OP can really decide what is what and if it makes sense for him to go this route.

Obviously factors that are going to weigh heavily are price/location/proximity to work, etc. Sometimes (especially in larger cities) you certainly can buy a house for the same money, but if it takes you 1.5 hours to commute 2x a day then maybe it isn't worth it. If the homes you can afford are in small sleepy suburbs, but you like being "downtown" all the time, then think about the gas/parking/general PITA that living 30 miles away can cause.

Also, you've really got to take into account what kind of maintenance you are willing to do/pay for. Yes you'll have assessments, but they will typically take care of mowing the grass/plowing the snow, etc. If you get a house you will (1) have to buy all of that equipment and (2) use it when it's needed, even if that is an inconvenient time for you.

My advice (if you still want a condo) is to get something where you think there isn't going to be a ton of inventory for sale when you try to sell it in 5-6 years (small developments or a single unit in a 3-flat building, etc). Or, at the very least buy something that is somewhat unique architecturally or has unique features that can be used as selling points down the road. Outdoor patio/roof deck, etc. If you end up buying the cheapest, cookie cutter place you can find, then yes... you will absolutely have trouble selling it down the road because there will be so much competition in the same building.

[prophetx2]

You got a lot of good info on how to get a condo in this thread. Here are just some +'s and -'s of a house vs condo since I was in your shoes a few months ago before picking up a single house. I'm assuming you're fairly young like me (late 20s) so heres my insight.

Condos:
+ very convenient if you are fairly busy. You don't have to worry about maintenance at all.
+ usually very secure compared to a single home. Of course this depends where the location is, but overall I find this to be true. Great for frequent travelers.
+ utilities and home insurance is usually less than on a traditional house

- usually not as much privacy if you have MANY shared walls. When looking, I always tried to find units with the fewest shared walls.
- to do any renovations in your unit, you usually HAVE to get HOA approval. READ the HOA documentation before even signing...you'll find a lot of rules which may or may not affect you.
- HOA fees are not tax deductable. Also they can and generally do increase over time. Keep in mind of this and ask for a history if you can.


House:
+ you can do whatever you want to the house with no restrictions (you may need city approval to be in code when you sell it)
+ appreciates and depreciates much better than condos
+ generally more privacy (unless your talking about row homes or town homes)

- way more upkeep. I spend a good hour+ a week just mowing the lawn right now. Let's not talk about gardening and all the other stuff I have to help with.
- money pit. A house has so much more crap to fix/break/update that it can get expensive fast.
- usually more expensive for utilities.

I still winded up choosing a house as i figured the cost of HOA x 30 years + the cost of parking on average that would be "wasted". Choosing a condo would of definitely fit my lifestyle better as it's easier to be out and about, but in the end I wanted a two car garage and more room.

One thing to note is that your approval for a condo is generally quite a bit lower than a house due to all the fees. For example, for a condo you may be limited to the 200-250k range while for a house you can look at the 300k-320k range. This greatly affects the "quality" of the condos and homes you look at.

If you lived in an apartment before, could you see yourself living in one for long term? If not get a house, if yes a condo will suit you fine. That's basically it. I used to get complaints once in a while due to too much noise which you still have to worry about in a condo. Heck I got in trouble one time because it was 6pm and I made to much noise moving my freaking bed and the apartment under me bitched because I woke her kids up...

[OC Guy]

Okay, there's some misinformation here about condos.

1. Just because you live in a condo, doesn't mean there are any shared walls at all (implied).

2. Maintenance - Really depends on the association rules/bylaws/etc. Read the CC&R before purchasing. Some condos handle everything, some only handle the common areas (areas in front of the house), etc..

3. Just because it is a SFR does not mean you can do anything you want to it. Again, read the CC&Rs.

4. Utilities can be the same. Not all condos cover trash/water/etc..

5. You can have a 2 car garage, detached home, and guess what? Live in a condo.

If you want to buy a condo/sfr/townhouse/etc. make sure you read all the CC&Rs before purchasing. Know what the association covers if there is one and what they do not cover. See what is your responsibility.

If you are looking for something other than a conventional 20% down loan, look into FHA is you/your property qualifies. Get multiple quotes from different brokers. Some Real Estate Agents these days will kick you back some of their commission in the HUD (they don't get taxed on it this way and you don't either). Doesn't hurt to ask the Realtor if they will do that.

[OC Guy]

here's some more info on Agent Commission Rebate:
http://www.talkirvine.com/index.php?topic=725.0