Owners of detached single family homes pay condo fees, they just don't know it.
You say, "What?"
When buyers are considering a single family detached home purchase vs. a condominium purchase, one of the biggest objections for buyers is the monthly condo fee. For those considering a condominium purchase, they need to look at the condo fee differently.
The amenities offered by many condominium communities are services that owners of single family detached homes are paying for anyway. Those expenses really add up, the difference being they are not included in a lump sum in the mortgage payment.
Some of the more obvious expenses include (numbers are just examples and vary from area to area, property to property and facility to facility):
- Lawn mowing, leaf removal, etc for a single family home - $220 month at $50 a week
- Gym membership - $100 for a couple, average $50 month a person
- Pool membership - $75 a month($800 a year)
- Garbage removal - $35
$425 total to this point for a couple, $375 single owner
Some of the expenses that are less obvious and most don't think about:
-Homeowners insurance(exterior coverage)
-This is a BIG one, reserves for big ticket items such as a roof, driveway paving, exterior painting, etc. that everyone faces periodically in a single family detached home
-If the community has a marina, part of the condo fee is devoted to maintenance, but if you needed to rent or a purchase a slip, there would be an additional lump sum outlay or a monthly fee
-Plowing and shoveling
-Exterior lighting of a home is normally part of your personal electric bill, but is part of the monthly condo fee
-Gated community minimizes security concerns - some people elect to have security systems which is an additional expense
-Some communities have walking trails with picnic facilities that require maintenance, minimizing the fees you would pay going to parks if some of your walking or picnicking is done within the community instead of parks, not to mention the convenience of not having to drive to a park.
And the list goes on..........
Potential purchasers of condominiums need to look closely at the amenities offered by the condominium community vs. the fees charged and then look at what their outlay for these services would be if they were paying for them separately if they purchased a single family detached home. Everyone hates condo fees - but you are probably paying them anyway - and maybe this issue should not weigh as heavily in your decision to purchase a condo if the amenities offered mesh with your lifestyle.
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