Quote:
Originally Posted by J.OT13
With a condo, you can be paying $500 to $1000 per month, and once all the windows or balconies need to be replaced, you're forced to fork out an extra $10,000 in one shot. With a house, once the mortgage is paid, you get to save that money for those repairs.
When I was shopping for a condo a few years back, a brand new bachelor was $180,000 with condo fees around $200. A 30 years old 2 bedroom condo a stone's throw away was $200,000 with condo fees of over $800. The owners of those condos had to lower the price to compensate for the high condo fees. If they bought the condo for $100,000 30 years ago, then that's still a good return, but if they bought it 5 years ago for $170,000; well not so much.
What I don't understand is why in a rental building, lease prices go down with the age of a building, even for those that are well maintained or fully renovated. Someone could be paying $1500 for a two bedroom apartment, while the guy across the street in the condo building is paying $1300 on his mortgage and $600 in condo fees.
|
You're complaining about a 2 bedroom unit costing $200,000? That's adorable.
Yes, I get your point but units in older buildings have their values go up when the real estate market goes up just like in houses.
Special assessments are no different from unforeseen repair costs in a house. And the latter happens more often. Repairing a chimney, replacing a furnace or AC unit, fixing a leaky roof or plumbing, sealing the driveway, replacing windows...major costs like these happen every year in a house. Lawn mowers, showblowers, gardening equipment, power tools, etc. cost thousands of dollars. Plus stand alone buildings like a house are inherently less efficient, so even monthly costs like power and insurance are higher too. And it's not just maintenance, it's amenities. I don't need a gym membership, pool table, swimming pool, hot tub, large hosting space, or barbecue because all those things are included in the condo fees/rent. Some buildings have a lot more than that, and some less. And let's not forget the amount of time that it takes to maintain a house. Time is, after all, money.
I assume that you own a house with no condo element, and that's fine. Your decision makes sense for you. People who buy a townhouse in a development with common elements have made decisions that make sense for them. Same with people who buy an apartment in a high rise building. Your home is no more financially responsible than other types of homes.