Condominium or house? There are benefits and disadvantages to both condos and Houses. To make your decision easier we have investigated both the condominium and house owner. Although the illustrations we put together are based on an average, we hope they will help you determine on the option best for you.
Hari wants a condo.
Hari left the family home and leased an apartment. He is a professional who is always on the go. Many of his friends still let, but some have gotten into lasting relationships which led to bigger apartments and even homeownership for them. Now most of his buddies are moving on, his home is feeling cramped and boring. What Hari is looking for is the opportunity to have more room, decorate, buy new furniture for something that is his own. Cutting back on commuting for typical trips such as shopping, going out, visiting is important to Hari as he works extended hours. Hari doesn’t have any hobbies that require a lot of room – in fact, he really doesn’t want a very massive space that he has to spend time and money persevering. Someplace to put clothes and a big wall for his TV are his needs. Simple, classic with new fitments are the main priorities. Caring for an outdoor area is not something he desires to do. A low support, all included property with a maintenance person to call on is another need. Hari gets on well with other people but he’s not all about building lifelong bonds with his neighbours; he’s fine keeping to himself. A bit of commotion isn’t an issue. Protection patrols and high security are one of his major needs. Safety is paramount. When it comes to taking care of himself, Hari cares about his health, so it’s great that the building has state of the art training facilities and a nice pool – there’s a savings on his gym club right there, because the monthly condo fees cover all the amenities! Access to a parking space will help with the resale value even if Hari does not buy a car. Hari doesn’t scheme to be in his condo evermore, after all. The future has not occurred yet, so who knows how the situation will change. For someone in this situation now, the benefits of condo life make sense.
Susie prefers living in a house.
Susie likes her personal space. When she was in college, she had enough of communal living and presently she doesn’t miss having only thin walls separating her and her neighbours at all. Spending some more time for commuting to work is not a problem for Susie, as long as she has her privacy and enough space around. And as for shopping, she just takes her SUV to the supermarket once a week and load it up. Nothing means more to Susie than her two children, and she likes them to be able to play around the yard like she did when she was a kid. The next plus is that a lot of other families with school age kids live around, and it’s really useful to know the other parents and compare experience with school sports, the best babysitters and the new off-leash park. And though Susie and her husband Stuart haven’t really thought about growing their family, it’s just possible that in the future they may have another baby, or maybe Stuart’s mom might need to move in with them later in life. So having enough space for the likely family expansion is a must for them. Also the family members have different hobbies - Stuart works on his vintage car in the garage and their daughter Jenny plays the drums, which would be impossible to do in an apartment - it is loud enough in the basement, so Susie is thinking about getting it soundproofed and putting in a bathroom, then they would have a great teen refuge. On weekends, they enjoy having a garden - Susie loves to tool around and pick fresh vegetables while Stuart fires up the grill for a barbecue. For Susie and Stuart, it’s also very important that they are owners of the land they live on. If it happens that the roof starts to leak, as last year after the storms, it’s still their own roof and they have money aside for such cases. Occasional home repairs just come with the territory. For Susie and Stuart, the responsibility for all the maintenance work is not a problem. They have divided the work up and they each have their own tasks - Susie cuts the grass, while Stuart takes out the recycling. As far as security is concerned, Susie believes that their new system will keep the burglars out of their home. And also there is a residents’ association that keeps an eye on what’s going on in the neighbourhood. She is just satisfied in their safe region and wants to stay there long-time and put down roots.
Final advice
So now which one of our two profiles felt closer to you - Hari or Susie? It is possible you don’t completely match either one – in this case, you may like the benefits of living in a condo town house, which can combine many of the advantages of both condos and houses.
Consider your finances. All housing costs, fees, taxes and regular related expenses should come to a maximum of 30% of your net monthly wages. Always look at the financial health of the Homeowners Association (HOA) to see if the monthly condo fees actually cover expensive repairs to the building, or whether residents have to pay an extra premium every so often (this depends on the health of the reserve fund, which your real estate lawyer can examine for you, as well as the condo by-laws; sometimes, for grave or unexpected repairs, arrangements are made for special assessments to cover these costs). What is contained in your fees? If there are extra facilities included do you really need them? You may not have a pet but if this is an issue check to find out if your building permits them. Also ask around to find out what your utility bills may be. The monthly fees may seem tiny, but if for example your unit has walls of windows and heat is not part of them, this may force your monthly expenses up significantly.
In case a house is your choice, then the mortgage together with property taxes shouldn’t be more than 25% of your monthly income, because you’ll end up paying extra for any maintenance the house will need. First try to estimate the necessary maintenance costs and also to what extent you are able to keep up with the repairs needed, as all the responsibility (from a leaky faucet to a flooded basement) will be just upon you. Also the financial and physical costs of commuting is important to be considered, as it will probably increase, especially if your new home is in a suburb. If you don’t want to be surprised by any trouble with the mechanical systems of your new home that would also surprise your budget, make sure to read a recent home inspection. For example, a fixer-upper with an ancient furnace, old wiring and insufficient insulation will demand a more or less immediate cash infusion just to make the house liveable.
