Why is everyone so against a condo vs a house?

We are thinking of condos now because we can't find a house and don't want to rent anymore because we want to invest.

Both RE Agents and my Mom...saying not so great things about condos...that it's really for people on the go and don't want to deal with maintenance.

um....how about I've seen some for $100K less than a house and it's better than renting and throwing my money away since it's an investment?

Am i realistic in thinking I can sell the condo in 5 years?
Am I nuts or something?
Please input.
Thanks!

Message edited 10/27/2008 6:19:16 PM.

Re: Why is everyone so against a condo vs a house?

idk much about this,so i could be wrong. but i heard the resale on condos is not that great

but if this is what you want then do it. dont let everyone make decisions for you.

Re: Why is everyone so against a condo vs a house?

we bid on one. Its only a 2 bedroom, people don't like it when I tell them that.

Its in a price range I feel very comfortable with. It would be cheaper then my rent.

I don't think we will sell it though if we have to leave, I think it has great rental ability.

Re: Why is everyone so against a condo vs a house?

totally a personal decision and matter of preference, IMO. DH would have loved to buy a condo but I won and we got a house. I personally could not wrap my mind around paying a mortgage on an apartment and then have to pay association fees on top of that. I needed to have my own space, specifically no shared walls and a yard.

If we couldn't have found a house in our price range, i would have really considered a condo for the reasons you stated.

Re: Why is everyone so against a condo vs a house?

The main draw back is the association fee. Usually it has a very small patio/yard and more common ground. But it's always more "free" time. The association fee takes care of the outside maintenance.

I think a condo is much better than a co-op.

I think vs a house, it has less privacy.

Re: Why is everyone so against a condo vs a house?

Re: Why is everyone so against a condo vs a house?

To be honest - there's nothing wrong with renting either... either you're "throwing" your money away to rent or to pay interest on a mortgage. If you really want a house and not a condo, I would wait for the house and rent until then. DH and I rented for 2 yrs and saved a ton of money. When we bought our house we just picked up and left without the hassle of selling....

Re: Why is everyone so against a condo vs a house?

Condos don't typically appreciate as fast as a house, so you may make less money when you sell it. And when DH and I were looking, condos cost as much or more than some houses! The upkeep of a house is more $$$ IMO, but you've got much more privacy.

Message edited 10/27/2008 7:48:30 PM.

Re: Why is everyone so against a condo vs a house?

I bought a condo in 2000 when I was still single. Without a doubt, it was the greatest financial decision I ever made! For about $200+ a month then I was paying for a studio apartment I got a 2 bedroom, 1.5 bath condo. When DH and I got engaged he moved right in so we didn't start our marriage with a huge mortgage and were able to save.

Fast forward 8 years - we sold it for more than double what I paid. I would do it again in a heartbeat!

I think unless people have lived in a condo, they are very quick to dismiss it.

Re: Why is everyone so against a condo vs a house?

Re: Why is everyone so against a condo vs a house?

Re: Why is everyone so against a condo vs a house?

Thank you all.
Hubby and I are putting spreadsheets together: renting a 2 bedroom apt vs buying a 2 bedroom condo.

Re: Why is everyone so against a condo vs a house?

We bought a 2 bedroom condo. Even with taxes, condo fees etc, it came out to 100 a month more than our rent. But for a nicer bigger 2 bedroom with more amenites (ie a deck, my own laundry).

I think condos especially now are going to be a good investment. The number of baby boomer looking to get out of their big houses into something smaller with no land to care for is only going to grow.

Re: Why is everyone so against a condo vs a house?

Re: Why is everyone so against a condo vs a house?

I am single and just got my condo at the end of August- and I love it. I would never considered renting- to me it just wasn't worth it- I am building equity in something and I have a tax write off which I needed. There are drawbacks as far as privacy- but honestly I am out alot so to me its fine- I own everything inside my walls and I have nothing exterior to maintain- resale on condos isn't that difficult- my owners listed in April and were out by August. Good luck!!

Re: Why is everyone so against a condo vs a house?

Re: Why is everyone so against a condo vs a house?

I have lived in both townhouses & regular condos. I prefer townhouses & they are generally easier to sell.
There are some good deals in real estate right now and if you can stay in the condo for 5 years or more you'll probably see some serious increase in its value. Also figure out at todays fair market rent prices & with your new mortgage if you'd be able to rent it.
I rented a 2 bedroom TH years ago from a couple that bought it as newlyweds, loved it but had 3 children in three years. They needed to move but the real estate market was in the dumps. They rented it to me but it cost them a few hundred a month to carry it. Becoming unlikely landlords was very stressful to them.
I personally loved living in a townhouse with a garage & driveway & semi-private yard & attic. It was so nice.
The comminty I lived in was called Greenwood, its off of Locust Ave in Oakdale. 2BR 2bath units are around 320,000 there now.

Re: Why is everyone so against a condo vs a house?

I would not buy a condo if I could afford a house if I were you. I know you are getting eager but I think you would regret it. Condos have a limited buyer pool, monthly fees, etc which can be a turnoff to buyers. In addition, if you plan on starting a family (which I think you do), don't you want a yard? I think you would outgrow your condo faster than you might imagine if you are planning on starting a family and then you are back to square one again in looking for your dream home. But this time, you are in a worse position since you have to sell the condo in order to buy the house.

So IMO, owning a condo to only buy a house down the road will only complicate the process next time around. Right now, you are a renter, you are free of the hassle of selling anything (which also makes you an excellent buyer and WILL give you a heads up over someone else when the right house DOES come along).

A house has so much more to offer in terms of privacy, yard, noise factor, etc. Keep looking, you will find your house...

Message edited 10/28/2008 8:04:50 AM.

Re: Why is everyone so against a condo vs a house?

Message edited 10/28/2008 11:21:43 AM.

Re: Why is everyone so against a condo vs a house?

Posted by OStewarts

Posted by lbride

To be honest - there's nothing wrong with renting either... either you're "throwing" your money away to rent or to pay interest on a mortgage. If you really want a house and not a condo, I would wait for the house and rent until then. DH and I rented for 2 yrs and saved a ton of money. When we bought our house we just picked up and left without the hassle of selling....

I think this is fantastic advice.

Re: Why is everyone so against a condo vs a house?

I lived in a condo for a couple years. While i loved not having to do maintenance, it has it's drawbacks.

Perfect condo people where i used to live-used to having neighbors in close proximity, used to noises resulting, you won't be home much, and don't have a dog and don't have visitors.

As soon as my dog came to visit, my family from NY came, my kids started crying, and i questioned everything the association was doing, it was so stressful. We learned the hard way we will NEVER be condo people.

In all honesty if you could get a house do it, condo's aren't bad they have their perks, but if we could have we would have rented our condo for income and moved into a house.

GL

Re: Why is everyone so against a condo vs a house?

I don't think there is anything wrong with buying a condo. I bought a co-op in April 2007 (can't exactly buy a house in Manhattan). However, if you are planning on selling within 5 years, I don't think the markets are in your favor. Homes are not going to appreciate as quickly as they have been over the past 5 years. If your ultimate goal is to buy a house, I would rent, save, and buy a house w/o concerning yourself with selling your condo at that point. That being said, there are many more emotional factors that go into owning a home than financial factors, so you have to make a decision that is right for you.

Re: Why is everyone so against a condo vs a house?

I think you are getting a lot of opinions from people who aren't as familiar with condos. For example, the taxes on the condos/townhomes you are looking at will NOT run you $600 a month. Our condo taxes are $4000, with star $3200. Not bad at all. We have a 1-bedroom, and the 1-beds in our complex sell more quickly than the 2-bedrooms, because they are lower priced, and appeal more to retirees and newlyweds/young people, while the cost of the 2-bed units is closer to the cost of a starter home.

We've lived in ours 4.5 years, and it has gone up slightly (maybe $20,000). Taking into account closing costs and a realtor fee to sell, we basically break even. For us it was cheaper than renting, so definitely worth it. Other townhomes we looked at are now selling for less than when we bought nearly 5 years ago. Houses are also selling now for less than when we were looking a little over 4 years ago.

I personally am happy about the condo association rules. We are quiet, work regular jobs, so I am glad they enforce no laundry after 10PM or before 9AM (we each have our own washer/dryer, and you do hear it in surrounding units), and general quiet hours. I think most people are not bothered by the rules. We have a pool, tennis courts, basketball, a playground, so while there is no backyard, I think any child living here has more room to play than most home owners. That said, we are ready to move on. We will price our unit below the comparable units and I know we'll have no problem selling. The people in our complex who aren't selling are the ones who think they can get the prices they were selling for 2 years ago, when our condo was going for $50,000 more than we paid.

Neighbors are something we think about all the time though. One neighbor is a night nurse, and one a cop who works nights, so even during the day we are very conscious of not blasting our TV sound system or making tons of noise. It's just about consideration for others when you live in relative close quarters.

Message edited 10/28/2008 9:03:29 AM.

Re: Why is everyone so against a condo vs a house?

Message edited 10/28/2008 9:18:06 AM.

Re: Why is everyone so against a condo vs a house?

Buy a house because you want to live in a house and are willing and able to spend the time and money necessary to deal with the upkeep.

There's no guarantee that any house, condo or co-op will increase in value. It's a place to live and if you wind up selling for a profit, all the better. The days of buying a house and turning a fast, huge profit are over.