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Not speaking to the specifics of the OP's example but I've owned both condos and single-family homes and they have their pros and cons
Owning a condo has a lot of advantages.
- you know your costs up front. As a homeowner you're always getting surprises
- no or low maintenance. No yard work, etc
- you can leave and be gone for weeks at a time and not have to worry about anything except maybe house plants
- you can live in a densly populated area where you don't need to be dependent on a car
- you can right size your dwelling. Single family homes are usually a lot bigger than single people or couples need. Own less stuff, spend less money
put all of those things into the equation and the total cost of ownership/living for condo can be a lot lower and the responsibility can be a lot less. I'm actually surprised more people don't choose to live in condos.
Not speaking to the specifics of the OP's example but I've owned both condos and single-family homes and they have their pros and cons
Owning a condo has a lot of advantages.
- you know your costs up front. As a homeowner you're always getting surprises
- no or low maintenance. No yard work, etc
- you can leave and be gone for weeks at a time and not have to worry about anything except maybe house plants
- you can live in a densly populated area where you don't need to be dependent on a car
- you can right size your dwelling. Single family homes are usually a lot bigger than single people or couples need. Own less stuff, spend less money
put all of those things into the equation and the total cost of ownership/living for condo can be a lot lower and the responsibility can be a lot less. I'm actually surprised more people don't choose to live in condos.
Also, the HOA fees cover operating expenses and reserves (no profit or board salaries) for things one pays extra for in a SFH (ie; water, cable, landscaping, pool maintenance, basic cable/internet, trash pick-up, lighting, general cleaning, property insurance, etc; .. plus reserves for painting, roof repair, (elevator), driveway/parking maintenance, etc).
People also overlook the fact that the condo advantage of "not having to worry about anything," means that "someone else is paid to take care of things." We've lived in large, upscale, waterfront condos for 15+ years with no plans to move back to SFH's. Of course, there is also a cost associated with location, security, privacy and limited sound intrusion.
In summary, Condos only seem to cost more than SFH's, if one overlooks the expenses not covered in their mortgage/rent payment. BTW, Renters insurance (possessions only) is not the same as insuring the structure. (Apartment living or apartments converted to condos, are an entirely different animal which we would not even remotely consider).
Simple economics. Supply and Demand. If demand is high, prices will be high. Higher prices mean higher taxes and insurance costs.
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People also overlook the fact that the condo advantage of "not having to worry about anything," means that "someone else is paid to take care of things." We've lived in large, upscale, waterfront condos for 15+ years with no plans to move back to SFH's. Of course, there is also a cost associated with location, security, privacy and limited sound intrusion.
And you have to goose step to the tune of the HOA Nazis that run the place.
"He who gives up freedom for security deserves neither." (Ben Franklin)
Simple economics. Supply and Demand. If demand is high, prices will be high. Higher prices mean higher taxes and insurance costs.
And you have to goose step to the tune of the HOA Nazis that run the place.
"He who gives up freedom for security deserves neither." (Ben Franklin)
Your quote rings true for those who felt strongly about their cause at that time. It still rings true for Americans who are still fighting their own "battle" against whatever forces (local, state, or federal government) they perceive as a threat to their ambitions in life.
The caveat is when people lose rights and freedoms that don't impact their daily life. Sets a dangerous precedent for more heavy-handed regulations, some of which that may in fact affect them.
The people in condos who live there happily long term, likely lead a lifestyle that naturally does not violate the rules of the HOA. If they lead a contrasting lifestyle that made them feel the rules were downright oppressive, they wouldn't live there long, or quite so happily, and maybe not have even moved there in the first place.
I tend to fall somewhere between the teacher's pet, HOA Nazis and the Clint Eastwood wild-west libertarian view on property and neighborhoods. If you don't want to risk being affected by your neighbors' noise or other behaviors, don't have any neighbors.
But if you want a managed community that puts the kibosh on overgrown lawns with 6 cars in the grass, dogs tied up outside barking all night, and the lady with 200 wind chimes in her front yard, there's a place for you, too.
Where are you getting the numbers for property tax and insurance? I doubt what you are seeing on the link you sent is correct, other than the HOA fee of $505 which was entered by the agent who listed the property. I looked at the Dallas tax site and it looks like property tax for that unit was $2695 last year, so your $900 a month is way out of line. https://www.dallasact.com/act_webdev...byproperty.jsp
I suspect the insurance cost that Redfin came up with may also be ridiculously wrong, perhaps calculated for a single family home. Generally insurance for condos is lower than single family homes as most condos carry their own insurance for things like roof and other major damage.
The HOA for this property must maintain both insurance, management, pool, grounds maintenance, security gate, fitness center, parking garage (probably has an elevator), etc. Condos with fewer amenities will likely have a lesser HOA cost.
I would suggest contacting an agent who can educate you on the questions you ask. They can show you comparable sales as well which may or may not justify the asking price.
It all comes down to supply and demand. If it's a highly desirable area where a lot of people want to live then the price goes up. If it's an area that people are trying to get away from then prices go down. There is ultimately no other explanation.
$500/mo. (6k/year) just for the HOA seems like a lot to me, *I* won't pay it, but I'm not going to stop anyone who wants to. Good for them. Maybe that kind of fee keeps the riff-raff away.
I pay $5,400 in condo fees at a ski resort. It includes plowing, shoveling walkways, water, HD Comcast video, all the firewood I can burn, heated swimming pool, and all the exterior maintenance which includes grading the driveway a couple times per year, staining the building every 5 years, and painting the trim.
My exterior maintenance costs plus my cable and water bills for my house are similar and that's with me doing a lot of the work.
This seems to be pretty standard for the area. Can somebody explain to me how property taxes are NINE HUNDRED A MONTH on a condo with no lot? How does it cost THREE HUNDRED A MONTH to ensure, when I currently pay $150 for the entire year on my renters for my apartment which is 1/3 the size? What the hell do I get for $500 a month on an HoA?
What a lousy market. There's nothing within 25 miles of Uptown that is both a) less than 30 years old, and b) less than $300k. How are there no options available with those restrictions, with 1,500 people a day moving to the city, many young professionals / adults who are NOT looking for 5,000 square foot McMansions.
There are so many things wrong in your post, it’s insane. $300 is about the annual cost for a Condo Insurance policy, and the tax bill on that condo is $6,031 per year.
Your rant is simply misguided. You need to enlist the aid of an actual professional and get off the Redfin/Zillow crap.
There are so many things wrong in your post, it’s insane. $300 is about the annual cost for a Condo Insurance policy, and the tax bill on that condo is $6,031 per year.
Your rant is simply misguided. You need to enlist the aid of an actual professional and get off the Redfin/Zillow crap.
Yea, my agent just quoted me at $1,500-$2,000 a year for the average cost of condo insurance in Dallas, but I'm sure your knowledge is above his
Essentially, from a financial standpoint, there's no reason for me to purchase
I currently rent a modest 500 square foot place that is fine for me, at $1,000 a month all in factoring rent, utilities, and insurance.
To get any sort of property, we're first looking at about $500 a month in taxes, and another $200-$250 increase in insurance. Factor in any associated HoAs, and I'm throwing away between $750-$1,000 ish a month in fees.
Now we factor in the $500-$750 ish in interest on a mortgage, and I'm essentially wasting more a month on non principle than what I currently pay in rent.
Dollar for dollar, continuing to rent until I have a need to move (job, marriage, market downturn, etc.) is the better option
Think of it this way: I could pick up a $2K payment a month all in factoring in taxes, hoa, insurance, P&I, and out of that around $350-$550 goes towards principal the first 10 years - the rest is thrown away, and the rest is more than my current rent by far
Essentially, I'm living for free right now compared to moving into a home, which would cost me an extra $450-$650 all for the benefit of gaining around $450 in equity a month
"But JCHouseHunter, you're forgetting the tax breaks!" - eh, probably comes out a wash compared to maintenance and repairs which I currently don't pay for
Yea, my agent just quoted me at $1,500-$2,000 a year for the average cost of condo insurance in Dallas, but I'm sure your knowledge is above his Man, this really does seem a bit high for that condo.
Essentially, from a financial standpoint, there's no reason for me to purchase Agreed, in your case.
I currently rent a modest 500 square foot place that is fine for me, at $1,000 a month all in factoring rent, utilities, and insurance. That's awesome.
To get any sort of property, we're first looking at about $500 a month in taxes, and another $200-$250 increase in insurance Maybe not quite that high, but you are making your point.. Factor in any associated HoAs, and I'm throwing away between $750-$1,000 ish a month in fees. You could find a SFR with no HOA, just saying.
Now we factor in the $500-$750 ish in interest on a mortgage, and I'm essentially wasting more a month on non principle than what I currently pay in rent. Agreed, except maybe on the "wasting" part.
Dollar for dollar, continuing to rent until I have a need to move (job, marriage, market downturn, etc.) is the better option Absolutely. I would rent right now if I were you.
Think of it this way: I could pick up a $2K payment a month all in factoring in taxes, hoa, insurance, P&I, and out of that around $350-$550 goes towards principal the first 10 years - the rest is thrown away, and the rest is more than my current rent by far
Essentially, I'm living for free right now compared to moving into a home, which would cost me an extra $450-$650 all for the benefit of gaining around $450 in equity a month
"But JCHouseHunter, you're forgetting the tax breaks!" - eh, probably comes out a wash compared to maintenance and repairs which I currently don't pay for
Continuing to rent seems vastly superior
For your situation, it totally makes sense to me. I grew up in Plano, went to SMU, and the most fun I ever had was bouncing around, renting. Something breaks - pick up the phone. If circumstances change, you might look at options differently. Dallas is an extremely hot market, especially if you want to be close to Dallas Proper.
Last edited by Pfhtex; 01-16-2019 at 01:52 PM..
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