Over a 30 year period, is it usually less costly to live in a condo than a SFH? (sales, monthly fee)

[Sky-Blue]

Compared to a SFH owner, it seems less expensive for a condo owner because the facility expenses are divided among all the HOA members. Over a 30 year period, is it usually less costly to be a condo owner (paying HOA fees & special assessments) than being a SFH owner?

ETA: I'm asking for a general cost comparison. I realize this is trying to compare apples to oranges, and many factors are involved.

[willow wind]

Well, look at it this way.

If you live in a townhouse type condo you're going to:

replace your own furnace, replace your own A/C, take care of your own electrical service and plumbing,
remodel your own kitchen, bathroom, flooring, do interior painting, depending on the complex sometimes install new windows

You're also going to do that if you live in a house.

A condo special assessment will take of a roof and siding repairs but you may be paying about the same or more on a special assessment than if you were doing it to a SF home.

Much will depend on where you live. Where I live, you wouldn't find a condo with a monthly fee of less than $ 250 a month at a minimum or $ 3,000 a year. It doesn't cost me $ 3,000 a year to mow my own lawn and pay for snow plowing and shrubbery trimming. What I save can go towards home maintenance, etc. YMMV

There is really no financial need to try to compare the two. It's much more of a lifestyle choice than a money matter. Some people are happy in a high rise condo in FL, overlooking a waterway. Some people hate outdoor work and prefer to live in a townhouse so they don't have to do it. Other people do not want others above, below and next to them. Condo living versus SF living, IMO, comes down to your tolerance of density and proximity to others, rules and regulations. No right or wrong or financial choice, just life style preference.

[jghorton]

We've lived in Condos for the last 10-years .... not because it is cheaper, but, because we really don't want to take care of a yard, pool, home repairs and maintenance, etc. - But, we do want the advantages of upscale waterfront living, privacy, 'close the door and leave' travel flexibility, better sales opportunities, neighborhood control/standardization and other amenities.

Comparatively, I've run the numbers and concluded that there 'might' be a 5-10% delta between HOA fees and the cost of the same services/maint/repairs/amenities in a comparable SFH. However, there is a higher initial cost and a lot more headaches and aggravations with service providers in a SFH.

Overall, we're quite happy with condo's and avoid those that allow short-term rentals (6-12 months or less) ... or have inadequately funded reserves and operating funds.

[KayT15]

Originally Posted by jghorton

Comparatively, I've run the numbers and concluded that there 'might' be a 5-10% delta between HOA fees and the cost of the same services/maint/repairs/amenities in a comparable SFH. However, there is a higher initial cost and a lot more headaches and aggravations with service providers in a SFH.

Amen to that. If you're not a DYIer, if you'd rather have a root canal than do lawn maintenance and gardening, then you have to hire people to do it for you.

I'm about to fire my fifth or sixth lawn service in 10 years. They all do a great job in the beginning, but once you sign the less-expensive one-year contract, they slack off. And it's not just the ones I've hired. My neighbors who hire out have had the same experience

[Wry_Martini]

Hard to say.

My condo HOA dues are pretty high -- $500/month, but they cover:

- water and hot water
- trash, recycling, landscaping
- security
- pool, hot tub
- fitness center
- insurance
- wifi
- some valet/concierge services
- funding the reserves for all expected repairs/maintenance over the next 30 years

I'd rather pay $500/month for the long run than $250/month and then get hit with a $10,000 assessment in 10 years, when they need to replace the roof/elevator/whatever. Much easier to budget this way.

[jghorton]

Originally Posted by Wry_Martini

Hard to say.

My condo HOA dues are pretty high -- $500/month, but they cover:

- water and hot water
- trash, recycling, landscaping
- security
- pool, hot tub
- fitness center
- insurance
- wifi
- some valet/concierge services
- funding the reserves for all expected repairs/maintenance over the next 30 years

I'd rather pay $500/month for the long run than $250/month and then get hit with a $10,000 assessment in 10 years, when they need to replace the roof/elevator/whatever. Much easier to budget this way.

I agree! (although we spend more than that on HOA fees). A possible downside to 'pay-as-you-go reserves' (roof, driveway, paint, resurface pool, etc) ... is that if one sells the property before these items are required, they don't get credit for the portion of the unused reserves they paid. Of course, if one moves to another condo, they 'assume' someone else's reserves for these things, ... while, in a SFH, one foots the entire bill.

[accufitgolf]

I have lived in 5 owner associations. I have never looked at it as a cost saving measure. I have always looked at it as convenience and control over my surroundings. In the long run I do not see an economic advantage to either one other then in a private home I could let things run down and not pay to replace/repair.

[lurtsman]

If you want to save money, SFH in a good area with no hoa or a low cost hoa.

If you don't want to handle yard work, get a condo.

If you want both, figure out which one you want more.

If you compare spending twice as much on one for the initial purchase price, you will have a false comparison.

Sometimes the condo gets good deals on services, they have great bargaining power. However, there is no guarantee that the next person to lead the board will do a good job. If you knew how to do it, you could, but why would you want to volunteer to do that if you moved to a condo to avoid dealing with those hassles?

The other major factor is life style. My wife and I like to be able to make noise, but we do not want to hear noise from another person's home. If you are buying a single family home, you can get that. Assuming noise levels are reasonable (IE, in your house and not outside), people can have a very comfortable buffer between houses.

[lurtsman]

Originally Posted by jghorton

I agree! (although we spend more than that on HOA fees). A possible downside to 'pay-as-you-go reserves' (roof, driveway, paint, resurface pool, etc) ... is that if one sells the property before these items are required, they don't get credit for the portion of the unused reserves they paid. Of course, if one moves to another condo, they 'assume' someone else's reserves for these things, ... while, in a SFH, one foots the entire bill.

Any good realtor is going to have those areas inspected and check the funding status of the condo before putting in an offer. The offered price will reflect the anticipated costs, or lack of costs, that will be incurred as a result of the funding status.

[marksmu]

Its area specific. I'm in Houston. Only people who are from out of town and do not know any better buy a condo here. Condo's here are expensive to buy, have astronomical maintenance fees, take 4-5x longer to sell, and generally do not appreciate at all.

Compared to a SFR here, only an idiot, or someone who doesnt know better would buy one.

A SFR will appreciate conservatively 2-3% every year, in good areas, 10+%....in exceptional areas, 15-20%. Here its easy to pay a yard man, maid, all utilities, and even a home service company to do EVERYTHING for you every month for far less than you would pay in your maintenance fees for a condo.

So its area dependent....I would never buy a Condo except as a vacation home somewhere. In Houston its economic suicide.