I am trying to do research about condos...

[ScrimpAndSave]

Because my dad seems to think that this is my best bet:

MLS

Omega Homes - Choose Your New Home

[Seeker]

There should be books available at your local library.

The problem with buying "new" is that there's nothing to judge about the Home Owner's Association. Fees are not even mentioned in the MLS listing. Do you get a copy of the Rules and Regulations?

This quote from a reviewer of the below book, is very very true. And buying blind (without a pre-existing HOA and BOD in place) is not something I'd choose to do.

"Buying a condo, townhouse, or co-op is like marrying into a family," writes Irwin. (Library Journal )

Amazon.com: Tips and Traps When Buying a Condo, co-op, or Townhouse: Robert Irwin: Books

Condo's can be good in many way (the "condo" pictured is really a townhouse if you have all three floors -- condo means that another family is living either above your place, or below your place), but it's a team that makes the rules and decisions that everyone will need to follow.

I've lived in a condo since the early 90's. Would I have choosen differently? Certainly. If I could afford a house here, I would have bought one.... but I'll admit not having to mow the lawn and take care of everything outside has also been of benefit.

[ScrimpAndSave]

Well, here is the deal. The builder has been building condo's and townhomes in this area (very close to this condo) since the early 90's. Although this looks like a townhouse, I am told it is a condo because I really only own everything inside the condo. The HOA fees are $114 a month and cover law care and snow removal. There are no pools or gyms or anything like that...so that is why the HOA fees are decent. Does that mean they can't raise them to $350 next year? No.

My dad seems to think this is a good idea because he wants me to have the piece of mind that I won't have to replace a roof or windows or something like that. Not that major issues can't happen - because I know they can. The 10 year warranty is comforting...but I do have to look into what that covers and doesn't cover as well.

Although I don't own the exterior, I will have a patio in the back and I can put up a fence if I want to...but it has to be an acceptable by the home owners association (so it would probably be an expensive one).

The property is located in a very good township and many people want to live there because the elementary school is excellent. The area is also en route to MAJOR cities...so we have a lot of professionals in the area looking for easy places to live.

I guess overall, I am not crazy about the fact that I will not "own" the structure...but I am not sure if this matters.

The basic package is $179,900. I would like to add few things and according to the salesman I spoke to, this is what he told me:
$500 - upgrade from a coil top stove to a flat top (appliaces are included)
$500 - add a cement patio to the back
$1800 - Put tile on the kitchen and bathroom floors instead of vinyl

I would like to upgrade the countertops too - but I want to see what the have available and how much the upgrades are.

I am setting my limit at $185,000 and I will be putting $30,000 down.

::whew:: I have been reading and researching a LOT today!

I keep coming across people that say that when you own a condo...you just own "a box of air"...and I understand where they are coming from and I guess that bothers me a bit...

[zetta]

In a HCOLA a condo is a very reasonable choice for a first home. Because detached homes are so expensive, there will be buyers looking for condos when you are ready to sell. (In the midwest I had heard not to buy a condo because they didn't maintain their resale value.)

[Seeker]

I keep coming across people that say that when you own a condo...you just own "a box of air"...and I understand where they are coming from and I guess that bothers me a bit...

Lol -- you don't "just" own a box of air.... you are part of a community. Sometimes that community agrees; sometimes not... sometimes there's a vote; sometimes not... but usually people want what's best for that community.

In many ways condo/townhome life can be quite good... in some ways not. It really depends on whether or not the community is "in line" with your own thinking.

What you're looking at, and since you know the fees and the area, can be fine. You should also get a copy of the Rules & Regs and understand what can be done or not in the common areas; not only by you, but by others.

There's nothing wrong with "owning airspace" in fact, if something goes wrong outside that airspace, it can be quite good to have the HOA have to bear that expense burdeon. In fact, I've had repairs that ended up with the HOA re-routing some pipes from underground, to overhead (in the ceiling and down inside the walls); they've paid more in repairs (wallboard, tile replacement, carpening/padding, cabinet replacement, labor, etc) than I've paid in dues over the years. I could probably live there another 5 years, and still will not have paid in dues what I would have had to pay in repairs if this were a house instead of a condo.

There are pros and cons to everything. A new place should not mean a new roof until 20 or so years down the line. Appliances should be fine. The space you're looking at is larger than the space I have. 3 bed/2 bath should be fine for you.

[ScrimpAndSave]

Seeker,

Thank you so much for your advice. Most of the people that I speak to around here advise against condos for the reasons that I stated earlier - so that is why I wanted to get the really conservative view here.

I am going to visit the salesman today and try to get a copy of the rules and regulations. I also don't know if the price is negotiable...I am going to have to research that as well.

Thanks again!

[ScrimpAndSave]

It's definitely on the higher end of what I can afford....but my dad tells me that I don't have to have AS MUCH in reserves because of the 10 year home warranty, no exterior maintenance and the fact that there are no renovations or repairs to be made.

With this being said, I know how important it is to have an emergency fund - especially in this economy.

After doing the math, the mortgage for the condo would be 2.6 times my gross annual income...this includes the $114 monthly condo fee...

[kork13]

The basic package is $179,900. I would like to add few things and according to the salesman I spoke to, this is what he told me:
$500 - upgrade from a coil top stove to a flat top (appliaces are included)
$500 - add a cement patio to the back
$1800 - Put tile on the kitchen and bathroom floors instead of vinyl

Minor thought/question on this....

Are tiles really better? Yea, they look better, but I've got them in my apartment right now, and especially in the kitchen, the grouting gets nasty if you drop/spill something (my roommate spilled coffee once, and that's about as bad as it gets), and it's harder to sweep/mop/clean the floor in there.... And in the bathroom, I always expect to see mold growing in the grouting from the water dripped about on the floor. Just a side-thought about that extra $1800 -- myself, not sure I'd actually want it.


More on-topic, I agree that a condo seems like a great option. I'll probably at least consider one for myself in the future at some point. If you'd be happy with it, I say go for it. Balance the pro's/con's just like you've been doing with all the other houses you've shown us, and make the choice that's right for you.

[wincrasher]

Any upgrades you want to do - do them before you move in - much cheaper and easier to deal with in the long run. Your utilities should be much lower on a new construction than the older homes you've been looking at.

Price/sq ft seems alot more reasonable than the homes you have been looking at - plus alot bigger space. Downside is greenspace - how important is a yard to you?

I'd be reluctant not having a clubhouse, pool, park, etc. Granted, you are not paying for those things, but they are important to a lot of buyers and may effect resale.

Don't forget to budget closing costs as well as an allowance for all those things you don't think about - any appliances, window coverings, furniture, moving expenses, etc. Believe me, it adds up quickly.

[Ima saver]

I owned a condo once, I would never do it again. the roof leaked and they would not fix it. I finally sold it for less than I paid for it.
As for tile, I have had it for years. If the grout is sealed, you will have no problem with it ever.(BTW, at my condo, the water was turned off constantly because the water bill was not paid on time)

[disneysteve]

Because my dad seems to think that this is my best bet

My dad seems to think this is a good idea because he wants me to have the piece of mind that I won't have to replace a roof or windows or something like that.

I guess overall, I am not crazy about the fact that I will not "own" the structure...but I am not sure if this matters.

I've followed most of your housing threads and I keep seeing this same theme crop up. Who is buying this home - you or your father? I understand that you love and respect your father, but at some point, your likes and dislikes and gut feelings need to rise to the top of the priority list. Listen to dad's thoughts and consider them but then make your own decision. Do what YOU think is best. Do what will give YOU peace of mind.

What do I think of a condo vs. a single home. I can tell you there have been times during our 15 years of home ownership that I wished we owned a condo but 99.9% of the time, I've been glad we didn't. I've heard way too many stories over the years of condo owners getting hit with huge special assessments because the complex decided to do some major repair or renovation. I've heard of cases where something was broken and getting it repaired was a nightmare. I wouldn't want those headaches. If something breaks in your house, you fix it. You decide how much to spend. You decide when the work gets done. You decide how much it costs. Not that there aren't headaches involved in that but at least you are in control of the situation.

[ScrimpAndSave]

Disneysteve,

You are absolutely right. The fact of the matter is - the single family homes within my budget are run down, less than 1000 sq. ft. and aren't always in the best areas. While I like planting tomatoes, the thought of keeping up my landscaping and mowing the lawn (it grows like crazy around here)...I'm not really crazy about that.

While I don't have a huge yard, I would have a cement patio that I will be able to walk out to from my dining room. There are also lots of walking and biking trails that the township has paved.

I really don't know what the right answer is...I like the fact that I don't have to worry about the roof or siding or windows...and I love the fact that it is very energy efficient.

Tile: I just hate vinyl. It's completely a personal preference.

[disneysteve]

The fact of the matter is - the single family homes within my budget are run down, less than 1000 sq. ft. and aren't always in the best areas. While I like planting tomatoes, the thought of keeping up my landscaping and mowing the lawn (it grows like crazy around here)...I'm not really crazy about that.

I really don't know what the right answer is...I like the fact that I don't have to worry about the roof or siding or windows...and I love the fact that it is very energy efficient.

I think it is important to accept the fact that there is no right answer. There are pros and cons to both options. I can tell you that if I were single, I'd probably live in a condo. I'm not the best at taking care of maintenance and repairs. I have no need for the private outdoor space. Heck, we barely ever use our yard.

I do like the privacy and quiet of a single home and the lack of rules and regulations not having an HOA. But if safe, desirable singles in your area are out of your budget, you need to do what works financially and lifestyle-wise.

[ScrimpAndSave]

Thanks Disneysteve. As you can see I have been researching this forever...

I've been trying to make the best decision possible - like anyone would of course. I have been researching the previously built homes that are for sale in the area to see what they were worth when they were bought. I am seeing two trends.

1. Home was bought brand new in 1993-1995 for around $120k-$130 and is now being sold for $199k-$220k (depending on the square footage and upgrades such as hardwood floors and tile).

2. Home was bought in 2005-2007 for $225k - $230k and is now being sold for $199k - $220k.

So the fact that some people have lost value scares me a little...but I that has really happened everywhere in our area.

[disneysteve]

I have been researching the previously built homes that are for sale in the area to see what they were worth when they were bought. I am seeing two trends.

1. Home was bought brand new in 1993-1995 for around $120k-$130 and is now being sold for $199k-$220k (depending on the square footage and upgrades such as hardwood floors and tile).

2. Home was bought in 2005-2007 for $225k - $230k and is now being sold for $199k - $220k.

So the fact that some people have lost value scares me a little...but I that has really happened everywhere in our area.

You are comparing apples and oranges here. EVERYBODY has lost value but you aren't looking at the right numbers to see that. What you'd need to look at is what the 1993-1995 homes were selling for in 2005-2007, not what they sold for new. A home that was 120K in 1993 and is 225K now might have been 300K in 2006.