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Cost of Owning Condo vs. House...

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

- 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:

Cost of ownership of condo vs. house

Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

This is a great way to show the real costs associated with single family and condo ownership. And if the single family home is located in an association community (like most newer homes now) that could add another expense.

Nov 11, 2014 03:53 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

You make excellent points and this is so easy to understand.  Not only that, but if folks want to do their own pool upkeep, yard, etc. that is there time.  Many people have jobs and when it's their off-hours, they will be spending it doing the "chores"  Time is money, as they say.  Excellent post.  Bookmarked for future reference!

Nov 11, 2014 07:08 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Wayne - you are flattering me. I am no guru, but it would be nice to be:) Thank you

Nov 11, 2014 10:40 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tammie - and many of those, who never lived in condos, do it when they come for their retirement years. Thank you

Nov 11, 2014 10:41 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Gene - thank you very much for your thoughtful comment. This is very true. Of course, with the time, there is a pretty good system is in place in Florida, but there is no limit to stupidity and stubborness, and there are people, who are master in doing things worse than they should be.

You are very-very right

Nov 11, 2014 10:43 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Mario - my pleasure.

Nov 11, 2014 10:44 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Pamela - here they are quite defined. Oceanfront, riverfront, and then in bustling years there were a lot of conversions of apartment buildings into condos.

Nov 11, 2014 10:45 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Gary - thanks for bringing it up. Of course, if this is an HOA community, there would be maintenance, so the overall picture wold be different

Nov 11, 2014 10:46 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Jon Zolsky, Daytona Beach, FL in fact, I tell my buyers about the same that you have to look at the final number! Condo fees may look huge, however, most of the time, most of it will be required to be paid by the owners anyways.

Cost of overall ownership is what matters.

Nov 11, 2014 10:47 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Carla - that was an issue for me when I lived in a house. I felt like its hostage. I worked a lot and only was coming home once a week for 1 day, and there was always so much to do, and I hated it.

This is very true, thank you

Nov 11, 2014 10:49 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

Condos have an appeal, for a certain lifestyle.

Homes have an appeal for a different lifestyle.

Each choice requires some time and some money.   Different relative amounts, but the buyer gets to choose....do they want to mow lawns tend the gardens or do they want to watch the sprinklers and smell the flowers.

Nov 11, 2014 11:54 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Praful - absolutely. Any structure requires maintenance, and why is that a house wouldn't? It sure would.

Nov 11, 2014 12:09 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Claude - and this is the beauty, that there is choice. But when people retire and try to downsize, and are avoiding condos only because they think it would be costly, they might be depriving themselves of a way of living by the ocean and enjoy freedom from chores.

Nov 11, 2014 12:11 PM
ReadySetLoan Team
ReadySetLoan Condo Team LLC - South Windsor, CT
Residential, Commercial & Condo Financing Experts

Hi Jon - congratulations on a well-deserved feature.  This effectively demonstrates that condos are more cost-effective not just for first-time buyers.

Nov 11, 2014 08:33 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Eric - it is so against the grain, meaning that this is so opposite of what people keep sayibng, that I expected a lot of countering here, but my numbers were not really questioned.

So, it is simply a big myth. At worst, considering Special Assessments, the cost are relatively similar, but in no way decent condo would be more costly than a similar value, size and quality house.

Nov 11, 2014 11:19 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

I love the chart.  So easy to follow with all of the points and information in one place.  Great job.

Nov 12, 2014 02:15 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Paula - thank you.

Nov 12, 2014 11:16 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Excellent analysis. But it's also important to keep in mind that there are single family homes (such as the one I live in) where yard maintenance is included just like in a townhome or condo community. I've also see condo HOA fees so ridiculously high that it's almost like a second mortgage payment. It's really important to truly analysis each situation individually. But you've provided an excellent format to do so.

Nov 12, 2014 08:33 PM
Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

That is a nice comparison.  I would have thought the condo insurance would have been less.

Nov 13, 2014 06:48 AM
Hrisco & Associates
Hrisco & Associates - Roanoke, TX
Roanoke Homes for Sale - Roanoke Neighborhoods

appreciate the insight, have a current client who is switching gears from looking for a home to a considering a condo, so this is very helpful.

Jul 06, 2017 09:02 AM