Most people think it costs less to buy a home vs a condo. And quite often that is true. However, there is one thing that many overlook when making that decision.
Buy a Home vs a Condo
It’s true that, usually, an entry level condo will cost less than an entry level home. But, if the monthly payment is the driving force behind your decision to purchase a condo, you may be missing something. And what you’re missing is the homeowners association’s monthly fee. It’s not uncommon for condos fees to cost $300 per month these days. Perhaps, you could use that $300 per month to better use by buying a house instead.
The Positives of buying a house
Playing with a mortgage calculator I came up with these numbers. Using today’s mortgage rates of 3.5% for a 30 year mortgage, a $67,000 mortgage will have a monthly payment of $300.86. This means that you could buy a house, spend $68,000 more than you would for a condo, and your monthly payment would be the same. You would then own a house and property, with no neighbors sharing a wall with you.
The Positives of Buying a Condo
When you own a condo, the association owns the exterior of the building, and they maintain it. THis means when you need a new roof or siding, the association pays for it. And the association will pay for the roof using the $399 per month that you, and all others owners, pay. The association also cuts the grass and someone else shovels the snow. Usually garbage collection is all included. This tells me that you do get value for your monthly association fee. So if you don’t want to perform those tasks, a condo may be the proper home for you.
Purchasing a house and not paying the association fee will probably get you a nicer home than if you purchase a condo. But you’ll need to do some extra work. And you’ll, at some time, need to spend money on home maintenance that you wouldn’t spend in a condo.
There is no proper answer for all, you’ll need to make your own decision as to which is right for you. I’m just trying to provide the necessary info for you to make that decision.
Are you ready?
When it becomes time to either buy or sell, we can help you. Call us – Bunny and Art Reiman – Realtors.
Would you like to search for homes in other Monmouth County towns?
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