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I should also add that I am an HSE (Hire Someone Else), not a DIY person.
Quote:
Originally Posted by Eeko156
Yeah, but for $ 50.00 a month I can have someone to mow my lawn in a house. With maintenance fees averaging around $ 250.00 for the condos in my price range, I would lose money on the grounds maintenance.
You still have to MSE (Manage Someone Else), find the gardener, ensure he is doing the job properly, fire if necessary, hire a new one should he quit, etc.
The $250 is going to include a lot more than the gardener. Not only the obvious like building insurance and grounds maintenance but they do put some money aside each month (called reserves)for the big ticket items like painting the exteriors or reroofing. This is typically not considered when comparing costs against single family homes. The condo fees may also include some utilities. Some condos have real high fees that go to a real rich set of amenities. Some people ant those, some don't. You just need to look at the breakdown to see if the fees are something you are willing to pay for.
I have rental condos and SF houses. With rentals, you keep track of every last expense so it is easy to track costs. My condos have been far cheaper and less hands-on for me. Going forward, it is likely I will only buy condos.
I own condos and SFH's because I am an investor. A year ago, as part of our retirement planning, we moved to a condo. We live in a hot market -- very desirable location in Dallas -- and the value of our condo has increased over 15% since our purchase. Location will always drive market rates! If comparing, however, SFH's are still a better appreciation if that is a primary focus for you.
What I like about the condo is the "Lock & Leave" ability. The staff will get my packages and mail and put them inside when I am away. My 1600 sq foot condo costs $600 in annual homeowners insurance; same price for a SFH here in Dallas for HO insurance is about $1900.
Our building is 10 years old and commercial office construction. 9" of concrete between floors. I have not heard a neighbor once. I use the amentities (pool, hot tub, grilling area, fitness room) just about daily. I like reading a book by the outside fireplace. I love that after I grill my food someone else cleans the grill and maintains the grounds.
OUr HOA fees are very high but I also like 24/7 conciege and if I want the valet will park my car and bring it to me. If I prefer, I can pull up front with my groceries and the staff will unload and bring them to my unit, too. So if I ever became injured or ill, there is staff here for those things and a "no tip" policy.
What would a healthy "reserve" be? And can't they raise our monthly fees at any time to any amount or are there laws that only allow them to be raised a certain amount each year?
Healthy Reserve: A good association will have a Reserve Study done which lists all the required future needs and budget the Reserves to be ready to pay for such when needed. An example is a roofing fund to reroof in say 15 years.
Raise Fees: Depends on the Covenants. In some cases there are caps and in other cases there are not. Some have an automatic yearly increase built it, some do not. Typically owners do not get to vote on such but they could recall the BOD and the new BOD could overturn the increase. In some cases the owners do not need to approve but they could gather enough voters to disapprove an increase.
The longer an association has been in business, the more the budget/figures paint a picture of how well it is operated
As one poster said, the word Condo in itself does not imply a particular type construction. It could be an apartment building style, side by side townhouse, single family houses, etc.
Some associations include outside maintenance, landscaping, trash collection, insurance, water, etc. Other do not. You are paying for the extras via your dues.
Some say condo living is for the newly married and the nearly dead. I have lived in 6 associations (apartment style, townhouse style, and private home style) around the country and I like association living. My main reason is the control the association has to maintain the environment like no junk cars, no helter skelter parking, run down exteriors, gaudy decorations, etc.
Condo style living can be quite care free, allowing one to enjoy life.
If it's a well-run condo, the condo board would have annual meetings, a formal budget prepared by a reputable accounting firm, all the owners would be aware of the projected expenses and the reserve fund years ahead of any big projects. It would all be budgeted. These are things to examine when looking into buying a condo. The finances should be in reasonable order, and the information should be easy to get.
At our last condo meeting we had detailed information about maintenance for the upcoming year, two years and three years down the road. We also had tentative, five year, ten year and even (very tentative) twenty year plans.
Quote:
Originally Posted by Eeko156
What would a healthy "reserve" be? And can't they raise our monthly fees at any time to any amount or are there laws that only allow them to be raised a certain amount each year?
Our state restricts what percentage of the monthly fees can be set aside for reserve funds and also how much fees can be raised each. year. Our condo decided that for major expenses, such as new roofs, half would be reserve funds and half would be from special assessments. Every special assessment that we have had in the past 30 years (only about four of them) we knew about at least two years in advance.
BTW, condos that are built as condominiums can be almost like a single family home. I own a two story, townhouse condo with a full basement. Some condos in my area are build as individual ranch style houses, but the land is common property, so no lawn mowing or snow shoveling. Actually, very, very few condos, in my area are converted apartments.
Condo style living can be quite care free, allowing one to enjoy life.
Quote:
Originally Posted by Iggier
Everyone misunderstands that a condominium is a form of ownership and not a type of architecture/structure. There are single-family homes that are condo. But in general, non-rental apartments are condo ownership.
Condo living is not for everyone, as a former resident and landlord of one, I like it. Our next move will be back to a condo form of ownership, whether attached, detached, semi-detached, townhouse, or apartment style. As to noise, by that time I'll probably being wearing hearing aids and will be able to turn them off when needed. It is definitely care-free living.
For those of thinking about it: Exercise due diligence. Having served on condo boards I'm always amazed by people complaining about the rules after they move in. Hey, that's your fault, you should have checked prior to purchasing.
For the ultimate condo lifestyle, take a trip to The Villages in Florida.
For those of thinking about it: Exercise due diligence. Having served on condo boards I'm always amazed by people complaining about the rules after they move in. Hey, that's your fault, you should have checked prior to purchasing.
Cannot agree more. Sage advice. I was a board president for a condo association and then a homeowners association. The number of requests for or modifications made by owners, or conduct in violation of the covenants/rules and regulations were astonishing.
Purchasers are obligated to the covenants by virtue of ownership and they have every opportunity to read carefully the community's provisions before entering into the purchase agreement. It is every prospective owner's duty to understand exactly what they are getting themself into before signing on the dotted line.
Don't expect the association to relax its rules or allow actions/structural modifications that are not in accord with the association's documents. It won't happen.
I think after reading these posts, a condo probably is not ideal for me.
I live in Florida, so no snow-shoveling, either way.
Most have no less than a $250.00 "maintenance fee" and I don't mind having to on Angie's List if I need a painter or an electrician. I can certainly hire lawn care for less than that.
Strong pet restrictions
Strong percentage of rental units
Reserves, assessments - I have little knowledge of these things and would not know how to go about assessing whether a condo has a good reserve, what a good assessment history is, or how often it can hit.
Socializing is not important to me, I am kind of a loner.
In the condos I have check out, many fees do not even cover insurance. Most of them covered "maintenance" only (plus sewer/trash). Granted, I realize my HOI will be higher in a house.
If I calculate monthly fees on top of assessments after, say, a 10 year period, I wonder how much money that is? Probably enough to have put a new roof on my house?
I guess I just don't like unpredictability, especially where $$$ is concerned. Of course, I realize all homes need maintenance, too.
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