Are condos a good first-time homebuyer choice?

[khosta]

Yes, that's exactly the way I'm looking at it!

I currently live near Philadelphia and I'm 23 years old. Philadelphia has a very expensive housing market and the only things I can really afford are condos (most are quite nice), and some starter homes that are a bit older (40-50 years old). I'm just debating between the two.

At your age I would def go with the condo!! And if you're in the city or near the city that makes it even more perfect!!! Don't buy a 40 yr old house... eww! That equals lots of maintenance and up keep and I don't think you want that!!! Plus, it will be so fun for you to decorate a cute condo and have friends over!! And tehn one day when you want to sell you could take that money a buy a newer home or build one your self!!

[Scanner]

I didn't read all of the replies but I came pretty close to buying a condo after my divorce.

The thing I always seem to find is that the condo assn. fees don't seem to make sense. You would think that because a bunch of condo's are sharing on roof repairs, snow removal, landscaping, that it would make sense on a scale of economies.

But it just never seems to work out that way.

[thomsoad]

This is great information!


Also should the age of the condo come into consideration? For the price range I'm considering there are condos that are 40 years old in a very good location and newer, 10-15 year old condos in a less desirable location for the same price. Are 40+ year old condos wise or should I go with something newer? I'm not sure how repairs can be made to a building versus to a stand alone home.

Age of the condo building itself really shouldnt be a consideration. Your HOA fees goes towards regular maintanance and upkeep. And on average an HOA would be more reliable to inspect their property then an individual home owner. Remember the funds are designed just for this purpose. Unlike an individual who may forgo yearly maintanence so they can buy a car or go on a vacation. So the roof and overall stability of the building should be just fine.

Also, just as an FYI. In many regards older buildings are more stable and reliable then newer buildings. Back in the day everything was quality materials. Building a home today with the materials used back then would be outragously more expensive. How many homes today use copper pipes and heavy duty iron nails?

Your condo itself depends on whether the person upgraded to unit recently or not. If not then just see what you can do about Seller paid Closing Cost Credit for renovations.

[NolaP]

I'd say if you can, talk to other people living in the building and ask them about pros and cons of living there before you buy. All condo buildings are not created equally. We have a condo in the DC area that is in a fantastic location though it's a bit older, and you can't get a hot shower between 9 a.m. and 3 p.m. It is ridiculous. We have complained about it many times and they says they are working on it but it's been years. If you can get some insider info you will be ahead of the game. Good luck!

[BuckyBadger]

I'd say if you can, talk to other people living in the building and ask them about pros and cons of living there before you buy. All condo buildings are not created equally. We have a condo in the DC area that is in a fantastic location though it's a bit older, and you can't get a hot shower between 9 a.m. and 3 p.m. It is ridiculous. We have complained about it many times and they says they are working on it but it's been years. If you can get some insider info you will be ahead of the game. Good luck!

Good point -- these things can vary. My condo had its own water heater. Actually, I didn't realize that they all didn't. I was in a townhouse-style condo with a basement; maybe the apartment-style condos are different.

I paid my own utilities (gas, electric, water). But some HOA fees include certain utilities in addition to the usual upkeep/landscaping/snow removal stuff. My HOA fee was only about a hundred bucks a month.

[MonkeyMama]

Age of the condo building itself really shouldnt be a consideration. Your HOA fees goes towards regular maintanance and upkeep. And on average an HOA would be more reliable to inspect their property then an individual home owner. Remember the funds are designed just for this purpose. Unlike an individual who may forgo yearly maintanence so they can buy a car or go on a vacation. So the roof and overall stability of the building should be just fine.

Also, just as an FYI. In many regards older buildings are more stable and reliable then newer buildings. Back in the day everything was quality materials. Building a home today with the materials used back then would be outragously more expensive. How many homes today use copper pipes and heavy duty iron nails?

I'd have to disagree with most of this comment.

"And on average an HOA would be more reliable to inspect their property then an individual home owner."

Um, not necessarily. Not all HOAs are managed very well. Many are BROKE. This is why it is important to examine the finances. Talking to people who live in the community is also a great idea.

I also strongly disagree with the sentiment that old homes were built better. Where I live, building codes are much stricter and newer homes are of much higher quality than anything built in the 1050s through the 1980s. For one, those homes don't have copper pipes, but newer homes are required to, here. Much higher quality building materials, etc.

[thomsoad]

I'd have to disagree with most of this comment.

"And on average an HOA would be more reliable to inspect their property then an individual home owner."

Um, not necessarily. Not all HOAs are managed very well. Many are BROKE. This is why it is important to examine the finances. Talking to people who live in the community is also a great idea.

I also strongly disagree with the sentiment that old homes were built better. Where I live, building codes are much stricter and newer homes are of much higher quality than anything built in the 1050s through the 1980s. For one, those homes don't have copper pipes, but newer homes are required to, here. Much higher quality building materials, etc.

This is where I would disagree. This is why I said on average. On average an HOA is more likely to maintain upkeep since thats what the funds are designed for. Very few people put out a % of thier paycheck for yearly upkeep.

I have also found that older building are more sturdy with fewer foundation/cooling/heating issues then newer condos. Once again, this is my experience here in the phoenix area. Your area could be different.

I would also like to state that newer does not mean better. I had an old used Whirlpool washer/dryer built in 78 and they lasted me 7 years without a problem. My current top of the line Whirlpool set cant even go 6 months without blowing its freakin motor. Also codes work both ways. Some made standards stricter while others made standards easier.

[snafu]

We've bought and sold four SFH in three different cities. A few years ago we sold the house and bought a Townhouse, 4 level, 35 y/o condo to facilitate our plan to take short term, international contracts. I chose it for lifestyle and location. Your 1st home can be a 'starter SFH,Condo Apt which you can sell when you want.

The HOA fees may seem high to some because percentages go to the long term maintenance and emergency [contingency] funds as well as day-to-day maintenance. Unless the complex is self managed, the fee pays for management and insurance for everything external. Some include utilities. I too want to emphasis how important it is to examine the financial records and read the boring Condo Board minutes before you hand over anything more than 'earnest' money. Your offer needs to include a conditional on satisfactory funding and minutes. The minutes quickly clue you into rules and limitations, problems that have been dealt with, problems that need to be dealt with, neighbors who are cantankerous, dog complaints and how the board responds to owners. For example, while we can all own dogs, they can't be allowed to cause problems for other residents.

I love our condo, the complex, the management people who solve problems like magic, the security, the trash system, my wonderful neighbors, the location, the amenities, and best of all the fact that I can lock the door and fly off to N. Spain, Hoi An, Bogota or Guangzhou etc.

Buying an older unit caused me to change out all lighting fixtures, plugs & switches to modern. I painted every room because I couldn't live with the creme/ivory the original owner ordered when she put the unit on the market. DH replaced every faucet because the originals were ugly. Last year I replaced all the large appliances. They worked but were not energy efficient and they were ugly. Although the carpet was newly replaced by the original owner, this year we will have the carpet removed and have Engineered flooring installed [wood isn't recommended in this climate]. The price I negotiated took into consideration the sums I would be expending to modernize

My point is that anything I've done to improve my condo was choice for my esthetic not necessity.

[DebbieL]

I hate apartment living (did it long enough), so the only type of condo I would ever consider is a rowhouse (townhouse), and it would have to have a backyard of some kind. Before purchasing a condo you should always look VERY closely into their financials and read their meeting minutes. The minutes will tell you a lot about what the strata council is like, how many complaints there are about noisy neighbours, whether they tend to approve household improvements or not, etc. You want to examine the budgets. Do they seem reasonable? You want to see what kind of contingency funds they have, whether they are setting money aside for large expenses (new roofs, etc). These things are extremely important to know. Don't buy into a building that isn't well funded and well managed. All in all, they tend to have too many "rules" for my liking. I don't want to have to have cream coloured drapes, not allowed to have a barbeque, not allowed pets, etc (just some examples of rules that condos might have). Another thing, my MIL (huge dog lover) bought a condo that allowed dogs, then about a year later the strata changed the rules and weren't allowing pets anymore. She was devastated and actually sold and bought elsewhere. That (selling and buying costs) was a very expensive thing.

[Coronet]

Another thing, my MIL (huge dog lover) bought a condo that allowed dogs, then about a year later the strata changed the rules and weren't allowing pets anymore. She was devastated and actually sold and bought elsewhere. That (selling and buying costs) was a very expensive thing.

That's terrible! I can't believe they could change rules just like that on you, especially in a condo. I have two cats myself and couldn't see myself giving them up for anything!

[jerrycates]

Personally I would agree to getting a condominium. Not only that it is more accessible to the places where working people go, the security will definitely be there. Some housing areas have the same too, but they have lousy ones. Condo security is better. It's kinda investing for safety as well. Why not?

[YourLifeSolution]

condos are a much better choice than homes, the liability is massively lower

[jeffery12]

I already do own a house and in a plan to own a condo too. got to see something really useful before buying this property

[Robert742]

I agree you want to look at the condo association financials, and at least 6 months of minutes of board meetings. You also want to know how many, if any, of the units are rentals.

My condo fits my needs because I'm single and I don't want to maintain a house. My housing expense is less than renting a comparable apartment.

One problem is most of the unit owner's have a renter's mentality, and are not interested in the responsibilities of ownership. I'm on the condo board, and I will have to stay on the board due to apathy.

I bought in 2000. Today, my condo is worth about what I paid for it.

If you can get a GREAT deal on a condo, go for it.

But, given the state of the housing market, would it be worth it to buy a condo and sell it in 5 years for about the same amount of money, when you consider the expenses and transaction costs?

You are young -- what if your housing needs change, or you need to relocate for a job, and you have to sell in a few years? You could lose money on the deal.

Owning a condo makes sense financially only if it is a long term commitment to own -- unless you are getting a really good deal and can sell it in a few years for a nice profit.

Condo living is like apartment living. Don't own just to own -- it needs to be financially preferable to renting, because it is more of a commitment. If you get a bad neighbor when you rent, you can easily move. When you own a condo, you may have to sell at a loss, or become a landlord.

[msnln]

Location is the key for condos. Buy one that is located in areas where young people desire to live in, as singles and young couples prefer condo over house. I own a unit in central part of town with great views. I purchased it one year after I got married because I fell in love with the location & views and could not bring myself to sell it when we had to move to the suburbs for the kids. So I decided to rent. The apartment has rarely been vacant because potential tenants instantly fall in love with the neighborhood and vistas from the balcony. When one tenant moves out, the tenant usually finds friend(s) to live in the apartment. The apartment has been rented for past ten years with no break in rent solely through such referrals (past three tenants). Only time I had issue renting was right after 9-11 because I am in NYC and the apartment is right next to UN. Then, everyone was concerned about living next to high profile buildings. Even then, I was able to rent the apartment within 6 months.

Basically, my tenants have paid off my mortgage/maintenance on the condo and the rent is now paying bulk of mortgage on my primary house. Equity built up while living in condo will help when buying a house later as long as you do not over-leverage.

As for pets, from my experience, board will grandfather current residents with pets, if they decide to prohibit pets--at least that has been my case.