I am trying to do research about condos...

[LivingAlmostLarge]

I've only lived in apartments/condos my entire adult life and so has my DH. Growing up we both had SFH.

Truth is that in HCOLA condos/townhouses are the only options.

I am with steve, you need to decide what you want. I'm 30 and I make up my own mind, no input from parents. You should to. It's way to easy to blame someone else for giving you advice than it is to accept the responsibility for making the tough decision.

Personally? If you were my friend, I'd tell you to move out on your own, rent for 1 year and then buy.

See if you even like apartment/condo living. And right now you are paying $500/month and 'extreme' savings because you get a break from dad.

How will you behave when you have to pay all the bills? How will you react when you have to scrounge up cash for unexpected expenses? How will your lifestyle change when you move out and suddenly feel like going out with friends more? Or dating more?

What financial impacts are you not considering since you so cushily now and I hate to say it, in a bubble.

[ScrimpAndSave]

Livingalmostlarge,

I totally hear you...and I think that a big part of this is the fact that I am in an aggressive saving mode right now - and this will not be like then when I have my own place.

I factor in the fact that I give my dad $400 monthly and I save $2000 monthly. That is $2400 a month that I do not touch at all...and I have extra that I spend on food, entertainment and some other things (which isn't much at all).

$1200 of that will be a mortgage, taxes, insurance and HOA fees...Suze Orman says to assume 40% more of that for utilities (which may be a little lower in a condo - but let's assume 40% to be safe). That would be somewhere around $450-$480 (and honestly I think that is a bit high going with basic, basic cable).

The rest will be divided up between my ROTH, general savings, food, entertainment, etc...I think I will actually feel LESS strapped. I need to outline EXACTLY what my budget will look like before I take the pludge...which is something that I am planning on doing right now.

[disneysteve]

Suze Orman says to assume 40% more of that for utilities

I don't think she says 40% for utilities. I think she says 40% for all housing-related costs beyond PITI. That includes utilities but also includes maintenance and repairs and such.

[ScrimpAndSave]

Thanks Disneysteve...I thought that sounded a little steep! I'm a little over conservative at times...

[snafu]

How many units in total? How many have been sold? Who is the target market the builder is focussed on? Who do their ads appeal to? Are the buyers mostly young professionals like yourself, families with young children or? Location, location, location...What is the commute to work? Are the stores and services you use nearby or at the least on your route home from work?

It is difficult to know whether a new complex will hold/increase it's value as that is dependent on unknown factors like economic recovery in your region, who the buyers are, investment or owner occupied, who does the maintenance [not just the maintenance company], the issues and problems - how they are handled and turnover.

You need to know your state's minimum, legal requirements for a Reserve Fund for the number of units in that complex. If units remain empty how will Reserve Fund requirements be met?

Did appliances include a fridge? Be aware that you will be paying for appliances on your mortgage. Laminate flooring that replicates hardwood in kitchen and bthrm is easier care than tile. Can you chose hardwood floors in public rooms, carpet in bedrms?

4 yrs ago sold house, bought townhouse style condo. Except for decor choices [paint and flooring] no problems. Fab complex, excellent professional landscaping, great location, important that all but two units are owner occupied [know why the two units are rented], the other owners appreciate the same things/values, almost no conflict. Last year the roofs were all replaced as planned, funded by the Reserve. This summer fences will be replaced, funded by Reserve Fund. Our complex's Board sends out a newsletter by e-mail for those of us who have given permission, other get hand delivered, hard copy, each month. If something important needs to be announced, the secretary sends out supplemental info.

I think you would likely enjoy being on the Board and make a valuable contribution in the decision making process.

you can grow dozens of pots of tomatoes onadeck! they now have up-side-down planters that hang from fence or bldg as you wish! When you buy a single dewlling, you buy all the equipment for yard care and landscaping beyond grass. Initially, it takes a whopping amount of money and time.

[LivingAlmostLarge]

Yes, you are "saving" $2400, but what will you do when you are "spending" $1500/month on a house in basics instead of $400?

Can you mentally handle it? Or if an emergency crops up?

Clear example, we flooded two neighbors in two different condos. One in San Diego and one where we live now.

First time, the pipe attached to washer burst. We hadn't even moved in! She was flaming mad the downstairs unit! Why? Well apparently the lady who sold our unit had flooded her earlier in the year when the kitchen pipe burst! So sure Insurance paid everything including a hotel for her, BUT it was PIA and insurance covers replacement cost, not entire value so some stuff she had to foot out of pocket.

Second time we were home in Hawaii for my grandfather's funeral. Left the heat on during a January Winter. Too bad it was a cold frost! Damn, the pipe burst on the outer wall of our kitchen flooding our downstairs unit. Of course we weren't home.

Insurance again covered it, but it was PIA again!

Stuff happens!

[ScrimpAndSave]

Hey Livingalmostlarge,

I'm so sorry to hear that you went through that situation. That totally stinks! But yes, you are right...things do happen.

About spending $1500 a month on just the basics. I'm absolutely ready. I'm exciting to rethink my budget with different allotments for my payment, utilities, food, insurance, car fund etc...I guess that makes me a major nerd.

Oh well.