Feb 16, 2021

Buying a House Or A Condo

Generally given a preference strictly speaking from a real estate appreciation stand point, a single family home will appreciate more than a condo.  However, in some markets like New York City, it may be that condos, town homes or co-ops are the only option.  It would be rare to find a single family detached home on Manhattan.  Given a choice, stay away from co-ops where you are actually buying shares in the building rather than fee simple real estate.   Selling that type of property requires approval by a co-op board, which can be problematic.  

Condos tend to be popular with younger people, first time home buyers looking to get into their first home mostly because they can't afford a single family home.  And, Seniors that have owned single family homes and no longer want to deal with outside maintenance sometimes gravitate toward condos.  However, it is funny to hear people say, "I don't want to deal with maintenance any more" as the reason for moving into a condo.  The fact is that condos come with monthly home owner association fees to pay for outside maintenance.  So in essence a condo owner is paying for the gardener, pest control, trash, outside painting and roofing.  And, there can be special assessments to pay for big maintenance projects.  

The reality is that people who own single family homes can pay for all the same services.  And, at least with a little land between properties, there is less chance of being directly connected to another home owner who could be a problem.  There are also issues with noise and other issues that can come up in condos.  Of course, there are rules with the HOA there to safeguard against unruly neighbor's behaviors; but higher density insures the potential for issues that can occur.  

Still condos make good sense for a lot of people.  If it is the only way to afford a home, it makes perfect sense.  And if older people can get one story living in a condo that could work too.  In buying any real estate always remember location, location, location.  And, if you buy crap, you own crap.  There are no bargain in real estate.  At Paragon Home Resources, we work clients daily to assist in selling and buying homes.   We can discuss the pro's and con's of condo versus single family home ownership to help make sure that you make the right life decision.