Rich_by_the_Bay
Moderator Emeritus
This is a spinoff thread from the recent "cost of housing" discussion. It's about the costs of condo living.
We are looking at condo options because of planned travel during FIRE. Same with "no maintenance" communities where the exterior upkeep is folded into your HOA or other deed-related arrangements.
Theoretically, condo maintenance should be lower than a fee-simple private property because of volume and shared pricing, since the HOA does not retain any profits. As I look at the numbers, this seems to be true.
The problem is when your priorities are at odds with the HOA priorities. For example, if you don't want to pay for cable TV and internet, you may have no choice but to pay for it if the HOA wants it. Or, you may feel that the buildings need painting but the HOA keeps putting it off.
The second problem is timing. Even if you agree the neighborhood needs more sidewalks, it might turn out that this is just not a good year for you to eat a $3000 assessment due to other expenses.
And finally, the ongoing fee-creep makes it very hard to plan your housing costs. But over the long haul, I think we will have spent as much or more on our single family home as we would have in a well-maintained condo. It's just that we've had more control over the timing of certain projects. I suspect that if you stay in a condo long enough, the overall costs even out or are lower.
I think a condo arrangement can work if a) you can live comfortably with the various deed restrictions, b) the big expenses are those you would avail yourself of regularly (why pay for a golf course cost if you don't play), and c) you have plenty of cushion in your budget for rising fees over time. Fees go up, but so would the homeowner's costs for insurance, roofs, maintenance, etc.
Does this seem accurate to those of you who live in condos?
We are looking at condo options because of planned travel during FIRE. Same with "no maintenance" communities where the exterior upkeep is folded into your HOA or other deed-related arrangements.
Theoretically, condo maintenance should be lower than a fee-simple private property because of volume and shared pricing, since the HOA does not retain any profits. As I look at the numbers, this seems to be true.
The problem is when your priorities are at odds with the HOA priorities. For example, if you don't want to pay for cable TV and internet, you may have no choice but to pay for it if the HOA wants it. Or, you may feel that the buildings need painting but the HOA keeps putting it off.
The second problem is timing. Even if you agree the neighborhood needs more sidewalks, it might turn out that this is just not a good year for you to eat a $3000 assessment due to other expenses.
And finally, the ongoing fee-creep makes it very hard to plan your housing costs. But over the long haul, I think we will have spent as much or more on our single family home as we would have in a well-maintained condo. It's just that we've had more control over the timing of certain projects. I suspect that if you stay in a condo long enough, the overall costs even out or are lower.
I think a condo arrangement can work if a) you can live comfortably with the various deed restrictions, b) the big expenses are those you would avail yourself of regularly (why pay for a golf course cost if you don't play), and c) you have plenty of cushion in your budget for rising fees over time. Fees go up, but so would the homeowner's costs for insurance, roofs, maintenance, etc.
Does this seem accurate to those of you who live in condos?