Cheap Condos, but Expensive Maintenance Fees. (Houston, Center: apartment, rental, HOA fees)

[Visitor2007]

There are some cheap condos in the Medical Center area for less than $100K and some even less than $85K. But, the maintenance fee is around $300 per month! That's half the mortgage. Any reason to buy a small condo than a single family house in the suburbs, other than the obvious long distance commute to work??

[Mom2Feebs]

Maintenance fees may seem expensive initially--for instance, ours on a 3 BR unit is $320 a month, but here's what it pays for:

Water
Gas
Hot Water
Sewer
Trash pick-up
All exterior maintenance, landscaping, mowing, etc
Repair and regular upkeep of all exterior buildings, roofs, patios, fences, carports, etc.
Pool maintenance
A discount on our electricity (we pay between 11 and 13 cents a kWh)
Cable (up to 72 channels)
Security
Building insurance (not goods inside, just the building itself)

...and probably a few other things I haven't thought of

Every property is different, but you should check to see what HOA fees cover each month. You will probably be surprised. It's pretty comparable to homeownership, if you break it down.

Make sure whichever property you choose isn't planning on any big upcoming assessments, that they have plenty of cash in reserves, and that the homeowners control the board.

Good luck!

[Visitor2007]

For 3 BR unit, you might be getting a good deal if you have a family, but if it's a $85K 1 BR apartment for a single individual, it might be expensive.

Water/Gas/Sewer might only cost about $80 ($30 for water, $25 for gas, $25 for Sewer) or even less for a single person who's not home all the time.
Exterior maintenance might cost less than $30 a month if that.
Pool maintenance: Irrelevant if you don't buy a house with a pool or ever use the pool.
How much does the discount save you? $30 a month maybe for a single person, if even that.
Cable: Not everyone wants/needs cable or watches TV all the time.
Security: That's not needed in a nice suburb community.

So, that adds up to be less than $150 per month. Please let me know if my estimates are way off.

[jfre81]

Originally Posted by Visitor2007

Security: That's not needed in a nice suburb community.

So you can leave your doors and your windows unlocked, right?

[Visitor2007]

Originally Posted by jfre81

So you can leave your doors and your windows unlocked, right?

No, what I was saying was that the price of security is included in the house price and not a monthly fee/expense like water, electricity, etc.

[jfre81]

Originally Posted by Visitor2007

No, what I was saying was that the price of security is included in the house price and not a monthly fee/expense like water, electricity, etc.

You mean like a security system. OK.

[Mom2Feebs]

It sounds to me like you're not looking for condo life. Your estimates could or could not be way off, it depends on your lifestyle. Have you gotten a detailed list of what that $300 covers for a 1 bedroom? Some maintenance fees include all electric. I'd check it out before you write it off, but from what it sounds like you need a rental apartment.

[Visitor2007]

Originally Posted by Mom2Feebs

It sounds to me like you're not looking for condo life. Your estimates could or could not be way off, it depends on your lifestyle. Have you gotten a detailed list of what that $300 covers for a 1 bedroom? Some maintenance fees include all electric. I'd check it out before you write it off, but from what it sounds like you need a rental apartment.

The way I look at it is that if owning cost me only $850 ($450 mortgage plus $250 maintenance fee plus $150 property tax), then it might be a better deal than renting that will cost me around $750 ($650 plus $100 utilities).

Am I underestimating the property tax for a $90K condo for $150 per month?

[Visitor2007]

By the way, how bad is the community on 2750 Holly Hall Street? Even if the area is bad, but since it's a gated community, how dangerous can it be?

Here is a link to one of these condos, it seems like a good deal? No?

2750 Holly Hall St 1220, Houston, TX 77054-4109 - Briarwick Cond Ph 2 Houston

[travelguy_73]

Originally Posted by Visitor2007

The way I look at it is that if owning cost me only $850 ($450 mortgage plus $250 maintenance fee plus $150 property tax), then it might be a better deal than renting that will cost me around $750 ($650 plus $100 utilities).

That's too simplified. Regardless of whether you buy a house or a condo, you will always spend more than the mortgage, maintenance fee, and property tax. If your toilet breaks, who pays for the new one?, what about the inevitable interior upgrades, or appliance repair? When you rent, these things generally aren't an issue, but you need to be prepared for the additional outlay of cash for what isn't covered by your maintenance fee.