Condo or single family home...what are the costs?
You might be surprised.
Home ownership, whether in a single family home or in some form of a communal residence, remains part of the American Dream and that dream is alive and well here in Naples. The decision of which type of residence is best for you will be based on several factors, some of which are purely personal and some of which are more practical.
There are obvious advantages (as well as disadvantages) to owning one over the other. The again, maybe they're not so obvious so let's create a pros and cons list. The table below delineates the basic considerations for living in each:
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Practical Aspects of Each Form of Ownership
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CONDO or TOWNHOUSE
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SINGLE FAMILY
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No exterior maintenance
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Privacy including private yard
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No landscaping maintenance
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No or very low restrictive covenants
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No pool maintenance
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Ample space for storage
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Usually in a prime location
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No or low common area fees
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Often more affordable
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No unexpected assessments
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Safety and security
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Better resale opportunity
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Access to amenities
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Ability to expand living space
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Lower homeowners insurance premiums
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Easier to rent if necessary
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Of course, as previously noted, there are personal aspects, which are largely based on your stage of life, your lifestyle, your DIY talent and availability, your family's (and extended family's) living situation as well as many other concerns. Then, there are the practical aspects, which largely surround the respective costs of ownership.
The table below delineates the hypothetical monthly costs for living in each:
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Economic Aspects of Each Form of Ownership
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CONDO or TOWNHOUSE
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SINGLE FAMILY
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Purchase Price
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$200,000
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Purchase Price
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$200,000
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Total Financed (10% down)
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$180,000
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Total Financed (10% down)
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$180,000
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Payment[1]
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$885.49
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Payment[2]
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$859.35
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Property Tax
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$185
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Property Tax
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$160
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Homeowners Insurance
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$100
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Homeowners Insurance
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$250
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HOA Dues
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$300
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HOA Dues
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$0
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Exterior Building Maintenance
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$0
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Exterior Building Maintenance
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$100
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Pool Maintenance
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$0
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Pool Maintenance
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$75
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Lawn Maintenance
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$0
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Lawn Maintenance
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$150
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Total Monthly Payment
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$1,470.49
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Total Monthly Payment
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$1,594.35
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As you can see, based on the above hypothesis, a single-family home is likely to cost 7-8 percent more each month versus owning a condo. However, here in Naples, single-family homes traditionally cost less to purchase than do condos and if you have to sell, single family homes tend to be more marketable. It could also be argued that you could purchase a condo in the $220K - $230K range and have roughly the same monthly payment,.
No matter what your wants and needs may be, once you’ve come to some decision about what type of abode is best for your circumstances you’ll have to plug your own numbers into the table to determine precisely what difference, if any, exists. Current market conditions will also have to be factored into your decision making process.
At the end of the day, there are too many variables for anyone other than you to suggest your optimal choice with any modicum of certainty. As with all good things, it comes down to choices. Good luck in your search for the home of your dreams!
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