- I am afraid of condos because of the fees.
I hear it all the time. I am a condo dweller, I used to live in a house and remember how much work it was. I do not believe that you really save unless you call cutting corners and doing no preventive maintenance saving, hoping that nothing ever happens to the house and you would sell it before it falls apart.
Below is the spreadsheet with annualized costs, and, as you see, it heavily favors condos. Nearly 20% more for a house. Am I darn wrong? So, correct me if I am.
I believe there are two things that affect us when it comes to condo fees.
1. Association Dues (fees) are regular and unavoidable. Costs are something that if we skip doing certain things today, nothing really happens. Has a huge incentive to cut corners and... do it again and again.
2. If I cut my grass, deal with all the shrubs, have a personal vendetta to ants and spiders, take care of the pool myself, then I do not have to pay others for doing it. And you can’t do it in condos. You only pay others to do it through your Association Dues.
And though this is true, but if we treat it as adults and do what has to be done, and not cut corners, then, with all other things equal, maintaining houses costs more money than maintaining a condo.
But how could it be any other way? Just think about it: in condos you have a team of professionals, who are directed what to do by a management company, that has a schedule of all required maintenances for the building. They do not forget when and what to do. And that’s all they do. How can you beat them and do your work, which is pretty much the same, more effectively and less costly, than the maintenance people in the condo?
You can do your own oil change and even car repair, but would you do it better and faster than a good professional with knowledge, tools and tons of practice?
Of course, some of the numbers here may be questioned. I, actually, encourage you to give me your numbers, and correct me where I am wrong, add items, or plain argue with me… I want to end up having a useful blog post for people, who are considering buying condos.
But there is even more to it., besides what is in this spreadsheet. What about the gym, which practically every condominium has? What about the sauna, Jacuzzi? Yes, you can have them at the house, but few have, while it is standard in condos. And I am not even mentioning those condos with indoor pool…
And please, I understand that there are things that you can have at the house, which you can’t have or do in a condo, I get it. I am talking here about general situations. I am not against houses, I am trying to figure out what is the cost of owning one vs. owning a condo.
After all, one buys a Kia, and one buys a Mercedes class S. Even though they know that it would cost them more in maintenance…
So, here we are. A house and a condo sold in Ponce Inlet in 2013. Standard house, 3 bedr/2 baths, 1 story. Pretty standard condo, 2 bedr/2 baths. Very similar taxes. Cost of electricity for condo is based on my own bills. See what we got:
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