Condo or house? This can be a difficult question because each option has its advantages and disadvantages. To help you decide what’s best for you – and rather than just listing the pros and cons of condo vs. house, as they differ for everyone – we’ve prepared profiles of the ‘typical’ happy condo and happy home owner. These examples may not match your individual profile exactly, but we hope that identifying with them will help you determine where to focus your quest for the perfect place!
Jack Wants A Condo
Jack is a busy professional who has been renting an apartment for a couple of years after leaving the nest. Many of his friends still rent, but some have gotten into serious relationships which led to bigger apartments and even home ownership for them.
Suddenly, Jack’s bachelor pad feels a little cramped and sterile (as his mother always points out). He used to be fine with it, but now he’d like to spread his wings a little bit – get a bit more room to entertain friends, and have the option of really decorating and getting some nicer furniture.
Jack wants a bit more room to entertain friends
Jack works long hours at the office, so it’s important for him to minimize the commute and the time spent running errands, shopping, picking up healthy take-out, grabbing his dry cleaning, and going out for fun. Jack doesn’t have any hobbies that require a lot of space – in fact, he really doesn’t want a very large space that he has to spend time and money maintaining. In the space department, Jack only really wants closet space and a nice big wall for his flat-screen TV. He likes clean lines and new fixtures. He doesn’t have time for home improvements or the desire to grow roses. He doesn’t want to fiddle with a fuse box or fix the sink – he wants someone to take care of these things as soon as they go wrong, with no surprise bills to pay. Jack gets on well with other people but he’s not all about forming lifelong bonds with his neighbors; he’s okay keeping to himself. He’s friendly and doesn’t mind some noise now and then – it’s part of life. But he draws the line at personal safety – that’s why he really likes knowing that the condo he’s interested in is patrolled and monitored 24 hours a day.
When it comes to taking care of himself, Jack cares about fitness, so it’s great that the community has state of the art workout facilities and a nice pool – there’s a savings on his gym membership right there, because the monthly condo fees cover all the amenities!
Jack doesn’t plan to be in his condo forever, after all. Who knows what the future holds? For now, though, the affordability and convenience of a condo seem to make a lot of sense.
Susie Wants A House
Susie likes her privacy. She left communal living behind in college and hasn’t looked back – who wants to be separated from their neighbors by only a single wall?
There’s nothing like picking fresh vegetables for a salad
Having privacy and enough space far outweigh the amount of time Susie spends traveling to work, and when it comes to shopping, she takes the SUV and loads it up at the supermarket once a week. Nothing means more to Susie than her two children, and she likes them to be able to run around the yard like she did when she was a kid. Plus, there are lots of other families in the neighborhood who have school age children, and Susie likes knowing the other parents are on the same page (there’s always someone to compare notes with about school sports, the best babysitters and the new off-leash park).
And though Susie and her husband Stuart haven’t really thought about growing their family, it’s just possible that in the future they might have another baby, or maybe Stuart’s mom might need to move in with them later in life. So they definitely need enough space for the family to expand.
Stuart likes to work on his vintage car in the garage and their daughter Jenny is already into playing the drums, which she wouldn’t be able to do in a condo – it gets loud enough in the basement as it is, so Susie’s planning to have it soundproofed and put in a bathroom to create a perfect teen retreat.
On weekends, Susie likes to tool around in her garden, which is really her pride and joy – there’s nothing like picking fresh vegetables for a salad while Stuart fires up the grill. The fact that she owns the land they live on is super important.
Occasional home repairs just come with the territory. Susie and Stuart don’t mind staying on top of the maintenance work, because they each have their own chores and responsibilities (Susie cuts the grass and Stuart takes the recycling to the curb). As for security, Susie’s confident that the new system they just installed will keep the burglars out, plus there’s a residents’ association to keep an eye on things. She loves the safe neighborhood and wants to put down ‘forever’ roots.
Are You Jack Or Susie?
Which profile resonated with you the most – Jack’s story or Susie’s story? Maybe you don’t fully match either one – in which case, you may enjoy the benefits of living in a condo town house, which can combine many of the advantages of both condos and houses.
Final Suggestions
If you decided that a condo could be a better fit, never let the monthly condo fees, combined with property taxes, mortgage and insurance, exceed 30% of your monthly income. Always look at the fiscal health of the Homeowners Association (HOA) to see if the monthly condo fees actually cover costly repairs to the building, or whether residents have to pay an additional premium every so often (this depends on the health of the reserve fund, which your real estate lawyer can examine for you, as well as the condo by-laws; sometimes, for grave or unexpected repairs, provisions are made for special assessments to cover these costs).
Occasional home repairs just come with the territory
Also consider what amenities are included within the monthly fees and if you are likely to use them often enough to justify spending your hard earned money. Make sure your prospective condo is pet-friendly if that is an issue for you, and find out the estimated utility costs for anything not covered in the condo fees (i.e. heat, water). The monthly fees may seem low, but if for example your unit has walls of windows and heat is not covered, this may drive your monthly expenses up significantly.
Similarly, if a house is your choice, then the mortgage combined with property taxes shouldn’t exceed 25% of your monthly income, since you’ll end up paying extra for any maintenance the house will require. Consider the cost of maintenance and your own ability to keep up with the repairs – the fact that the responsibility for everything, from a leaky faucet to a flooded basement, will rest with you. Consider the financial and physical cost of transportation, which is likely to rise if you will be moving to a suburb. Make sure that you examine a recent home inspection to prevent any surprise problems with the home’s mechanical systems, from wreaking havoc with your budget. For instance, a fixer-upper with an ancient furnace, old wiring and poor insulation will demand a more or less immediate cash infusion just to make the home liveable.
Of course, choosing the most suitable property type to meet your needs isn’t necessarily as simple as considering two simple scenarios. If you still have any unanswered questions, The Robert Prophet Group is always on stand-by ready to help. Happy hunting and good luck!
For more information please contact Robert Prophet and the Robert Prophet Group. Send us an email or visit our web site: RobertProphet.com
Special thanks to Ana Santos.
