NEVER Buy a Condo
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- čas přidán 29. 08. 2024
- I know many think that a condo is a more affordable option to a single family home. But condos these days come with a big share of problems and I’m going to tell you why you should never buy one.
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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River
#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting
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Or stop electing crime loving politicians or politicians ok-ing insurance monopolies
I agreed you but safety has not price specially today U.S. A single house without HOA has no the same advantages as has a Condo such gate security, maintenance (today is so expensive), roof, pool/social areas, sports, etc. The issue is the corruption in the boards but Gov. in FL issued new law coming July 1. & owners need to involve more in HOA meetings. I love u videos.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
- I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I was a renter for most of my adult life. Rent was becoming so expensive, I decided to buy a condo. Now, after 15 years my condo is Paid For. I am a member of the Board of Directors Directors. We are keeping HOA rates as reasonable as possible. I never could afford a house. Much better than an apartment.
Good for you but not all HOA officers are as reasonable and ethical as you, sadly speaking.
Second that. Ours is managed by 2 star property management company! They lag with repairs !
Most Condos are apartments. Very few are row homes or single family. It’s better to own a single family home in a hands off HOA or no HOA.
Sir, the dollar won't be worth anything by then
Nor are homeowners....im soooo sick of privileged people complaining about HOAs and the fees when you signed up to pay HOA fees. You also signed up for the rules and regulations. Nobody else the majority of these people need to grow tf@@whatevergoesforme5129
I recently sold my condo for $400k and i want to invest the money in the stock market. However, it appears the market is at an all-time high. Should I invest elsewhere or wait for a market correction?
The stock market is risky But staying on the sidelines is riskier. Missing the next bull run will be far more costly to your long-term wealth than getting in at the "right price". Consult a financial advisor if you're unsure how to proceed.
You're right, I and a few Neighbours in Bel-Air Area work with an advisor who prefers we DCA across other prospective sectors. Instead of a lump sum purchase, Following this, my portfolio grew 37% in the last quarter
Mind if I look up your advisr please? I've worked in real estate for over 25 years and have neglected a major stock portfolio. This served me well when I was flipping and renting houses, however I need a different plan now
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for the lead, searched Aileen by her full name and at once spotted her consulting page, she seems highly professional having over 12 years of experience. amazing!
My HOA IN FORT LAUDERDALE FL WENT FROM $430 TO $1400.00 PER MONTH! I politely sold it and moved on. The People who didn't do the same are now situational hostages! No one wants to buy there with that high HOA. The only amenities are the pools. THATS IT!
Sure I bought years ago but my mortgage is only 1,250. 1400/mnth in HOA fees is criminally insane.
Yikes 😳
It went up that much because insurance costs in FL have skyrocketed especially due to recent hurricanes.
Holy cow! That is so crazy! How can anyone afford that?
Happy for you that you got out. I just sold in Pompano and am now happily renting.
I owned a condo for 11 years. Never again will I buy one for all the reason Jackie mentioned.
What prompted you to buy one in the first place?
If i had to guess because theyre substantially cheaper. Many people dont have an option when condos are starting out at 400k and detached houses are 800k+. @jltaco85
@@bhaalgorn 💯 correct. My question is, when someone retired can no longer taking care of their homes to do aging, decided to buy a condo, how they are going to afford it now?
🥵 Tell us your horror stories about Condos
@@tracy9058 It's far better for them to simply budget for maintenance with what they would have spent on HOA/Commons charges.
She ain't lying. I owned a condo for a decade and just like a boat owner, the happiest day is, when you buy it, and sell it.
The happiest day was when we sold it- but it was the most painful day too- as we took a loss. But, we no longer have the high HOA monthly fee or assessment fee(s). That’s why we are now soooo happy we no longer own that condo!
OMG; I was engaged to a guy a few years ago and he was trying to get me to go in for a share of a boat.
Talk about trying to take me for a ride!!
We couldn't even spend one night on it because two things were broken. The motor and the bathroom. Nope. Okay, I get it; super rich people buy them like a moped/scooter. There are thousands of those boats just sitting there unoccupied and dollars in the ocean. I saw it all, even with my beer googles securely in place.
Back to condo/townhomes...sheesh. It's a losing game even if you're on the full side of town, your "property" is going to sell for less than a free-standing home without an HOA in the same neighborhood. Yes, I'm a control freak. Especially when it comes to my money.
I must admit since I bought my Marco Island area condo for $240k after 2008 housing crash and it's now around $900K it's a good feeling. Bought to live in though with nice beach,Gulf,and marina balcony views to enjoy.
Not selling and don't need to.
I have lived in the same house for 50 years. I am now old and no longer able to look after the house anymore. I want to sell my house and live in a condo but thank you for the heads up on the pitfalls of condo ownership.
Stay in your home and hire a handyman. Get a roommate.
@@janetbusener6326 Having had to have this conversation with a parent, there comes a time when it's not the right choice. Most hang on too long (and the house deteriorates as a result). Even bringing in contractors takes effort and time. After decades of safe driving, driving becomes difficult and a hazard. There are plenty fine senior living facilities, with chefs from famous hotels, and small theaters with reclining leather seats and popcorn machines, for about what you'd spend anyway, all in.
@@janetbusener6326 100% agree.
@@janetbusener6326 Exactly!
Yeah, don’t do it.
I bought my first home at 23 and it was a condo. Were the HOA and neighbors a pain? Yes they were. But it was also a good way for a young single woman to ease into home ownership (I was only responsible for the maintenance inside of my unit) and I pocketed a lot of equity when my husband and I sold and moved into a home. It can be a good choice for some people.
Yeah, I always saw condos, townhouses, and manufactured homes as a good short-term starter place. Long-term I feel like you'll be bleeding money. Once you build some equity you can sell it and get something else. Either that or rent it out.
Before condos where cheaper, now they are overpriced and comparable to home prices….and HOA fees …well they were low to but now to high because of all the reparations and maintenance higher cost…I wish I could by one for my daughter (special needs) I was looking for a studio, no luxury, no special amenities…250 000$… and 4500$ annuals taxes fees…so really not the same market …imagine the prices for a regular simple 2 bedrooms..yes they are overpriced that’s the main reason that a lot of them stay in the market for a long time…
@@NicolewithouttheH you must be a lucky boomer.
@@evelicActually I’m a young millennial. Home ownership is totally in reach if you choose to live in a city with reasonable cost of living.
@@evelic It's not about luck, it's about hard work. I laugh at younger people because they just assume "boomers" had it easy buying property and such when they were in their 20s and 30s. I am sure it was just as hard, the homes were cheaper, but their paychecks were a lot less and the interest rates were like 18 percent!! I am not a boomer, but with hard work I was able to buy my first home at 29, it was a brand new garden style condo. It sucked because the HOA, the fees, and neighbor noises from sharing walls that were made of newspaper I think, but it was a great starter home to ease into home ownership. I started my two careers when I was young so now I make enough money to own a SFH, which I bought several years ago, My point is, again, it's not about luck, it's about the willingness to work your ass off!
As a condo owner everything you say is correct. But their are pros and cons to everything.
Absolutely! Thanks for watching!
What's the difference between a condo and an STD? You can get rid of most STDs.
@@JohnBowl14690 LOL.
@@JohnBowl14690Time shares are even worse. It's a slice of a condo.
@@crand20033 - Yeah, timeshares are horrible.
That also happens because people do not attend the HOA meetings
Special place in hell for HOA's.
Living in a 270 unit condo lucky to get 10 owners to a COA meeting. They do zoom for meeting. Totally insane. But that's the way they operate. Giving you fair warning. Don't buy. It maybe too good to be true. RUN
I attended condo meetings. It turns out my vote mattered about as much as it does in any election ... not enough to matter. I own a house now, my problems are all my own.
Thank you for your response! 🎉
So if people attend the meetings, the shared maintenance costs will go away? Or did you mean that if you go to the meetings, you will understand why those costs are necessary, and so you will stop whining about it?
As a sole breadwinner with a medium to low salary taking care of a disabled wife and a child with special needs, I was tempted to get a condo to fit my modest budget.
I ended up buying a small semi-detached house with no HOA as a compromise. It was hard to qualify for a mortgage on one income but I've done it.
Very glad of my decision and my family appreciates the house. It sure feels good not to have to deal with anyone else's rules.
Although most people dislike HOA FEES THAT ARE RISING, you will have maintenance costs for single family homes too. I currently have a single family home which is 68 years old. I estimate that I will have about $100k in maintenance costs coming up. House needs a new roof, new floor covering, new water line, new sewer lateral, dry rot repairs, new kitchen counter top, new paint inside, some new landscaping (8000 sf lot), etc. etc. I have been impounding extra money for years knowing these repairs were coming up for an old home. If you own either a condo or single family home , you are going to have maintenance costs. Everyone needs to set reserves aside when you own real estate. Some options I could use to pay these repairs: pull money out of reserve account, tap my home equity line of credit line, and/or refinance with new first loan. Currently the house is free and clear with a line of credit available for $150k which I renew with my bank every 10 years. Hopefully my story will assist other homeowners to navigate through these challenges that we all face at some point during our ownership. Folks, you have to think of the future at least 10 years down the road.
I agree. As an owner of a SFH that is paid off, I can attest to the fact that it is not cheap either. Rising expenses of a SFH can be compared to the HOA fees of a condo, but they are not called "monthly HOA fees" or lumped into a monthly espense. Rising homeowner insurance, taxes, lawn services, major repairs, etc. are much much higher than a SFH IMO
At least these are normal issues that you can honestly plan for. WIth the HOA fees, you have to worry about all that, and then also corruption, embezzlement, greed, and incompetence of the HOAs. I think Jackie's point about investigating the HOA is literally the most important if youre going the condo route.
you are more at the mercy of inflation in a condo.
In my house I clean the gutters, clean the outside of windows and siding. I mow the lawn, plant the garden and shovel the drive and walkways in winter. I painted and patched up the driveway, I repoint some brick, installed windows. I caulk and paint. if I keep on top of preventative maintance it's even cheaper not letting things get to a point whole walls are rotting out like what was happening in our complex with the last place we had.
In a condo title *everything* dealing with CP is hired out at whatever those services cost now. so not only at the mercy of inflation with materials costs, but also the labour. also not all boards are smart. Some are dumb enough to do work in the wrong order, or go with crappy contractors so the work fails prematurely, or ignore issues until owners are facing 300K plus special assessments for each unit to deal with epic water damage, rot mold and a failed building envelope that should have been addressed at least a decade prior.
went from a strata title townhouse (strata=condo) to SFD and NO question is SFD is substantially cheaper per sqft to keep and maintain, and zero comparison for your peace and quality of life.
Yeah but at least you're responsible and have real transparency into the finances.
Now that my husband is over 80, I am glad we got a condo because we would have to hire our maintenance just like condos do. Our board is all owners so they look for the best deal. Most condo owners are seniors and supportive of each other. It is less expensive than assisted living, for sure. Detached house maintenance is fine for people under 75 but it gets harder for seniors
I've owned homes and condos. I agree and disagree with some of your points.
Land means taxes and yard work. Your health and amount of available free time will determine your ability to perform yard chores. In my experience it was more expensive to hire a lawn service than it is to pay HOA fees.
Condos are cheaper to buy, and they have lower taxes than homes. Taxes vs HOA fees...math determines the more costly.
Based on recent sales, my condo is worth 90% more than when I purchased it. Good enough investment?
No shortage of buyers here. Condos sell as fast as homes.
Rules enforce common courtesy. Are not intrusive to decent folks. They also ensure that renovations are done safely and do not harshly impact your neighbors.
Special assessments... it depends. In my area single family homes and condos had terrible issues with foundations made with cement product from China. The house owner has to come up with a massive pile of cash (or get a loan) to remedy it. The condo owner shares the cost with everyone in the complex. The condo owner doesn't need to deal with the various contractors.
Yup, love living in a condo! My condo has a fully equipped gym, a great multi-purpose room, a dog wash station, a competent building manager keeping the place clean, minor repairs, etc. No short term rentals allowed. I never have to mow the lawn, weed, rake up leaves, shovel snow, that's all done for me. Mail and packages are safely delivered to inside the building. No risk of porch pirates. No solicitors at my door. Noise is minimal, only a bit coming through the floors from above. And news flash people, when you're in a single family home you hear whoever is moving around upstairs when you're downstairs, significantly more so than an apartment. I grew up with a huge family in a busy home. The occasional foot steps or something dropping from upstairs is so much better than what I was used to growing up.
@@nancy78811 Your condo will age, and your HOA fees will increase significantly over time to the point no one will want it. The amenities will decline. No one needs a dog wash station. Use your shower. That's a gimmick to sell naive consumers when the condo is new. It won't last. I lived in a condo for 22 years, and what a nightmare it became. Condos are a scam.
Two words: Champlain Towers.
I agree, I"ve had both as well. I love the carefree lifestyle of a condo. Mine is practically a "townhouse" since i don't have anyone above or below. And I love the community and people, everyone looks after each other at least in my community.
"Cement product", is that like "cheese food"?
I would NEVER purchase a property with HOA fees. They'll suck the life out of you.
I was talking to a fellow who was fined by his HOA because his visiting grandson had left the garage door open on a Saturday afternoon.
@Panzer4F2 I think a lot of these HOA board members have a napoleonic complex. They thrive on making peoples lives miserable.
Good luck with that. 😂
@deb....YEP!
Unfortunately, where I live, you can't avoid HOA, grrrrr.
I had to buy a condo because I cant afford a ranch house in the Seattle metro for over 600k. Condos appreciate here pretty well.
Same here. I think condo life in the Seattle area is a bit different. It’s a much more common type of housing here. The HOA fees are high in some cases, but trust me, you’ll spend a comparable amount on upkeep and maintenance of a single family house. Potentially higher property taxes on a sfh as well. I enjoy the very low maintenance lifestyle.
@@genxtechguy I do too. The property taxes for some of my coworkers small homes is 5k a year where I pay half that. HOA is low in my area I got the affordabilty for picking a higher crime location. I dont care about the school zone. Success is not based on who has the most but who needs the least. So I agree with you live below your means for more peace of mind.
Same, but it works better for me anyways. I don’t have space I don’t need and I don’t have to worry about dealing with anything outside of the studs of my condo.
People not in the Seattle area don’t get that in some places, making 6 figures doesn’t guarantee being able to afford a single family home here. If I had a dollar for everyone I had to explain this to…
@@tresjolieme81 Yeah, in the cities where real estate prices exploded (still exploding?), prices for everything (rentals, condos, co-ops, houses) went into the stratosphere.
$600k for a detached house is UNAFFORDABLE in a city where median household income is $120k? I don't think the market is the problem, it's more likely the people. $600k in Vancouver can only buy you a studio and we make less than 1/2 of Seattleites.
I bought a condo in Florida in 2013 for 75k still near the bottom of the bubble crash, and I absolutely love it. I have never once regretted my decision. To be fair, there is ZERO chance I'd be able to afford to buy it at its current estimated value.
The HOA fees have gone up because of the Florida insurance crisis, but I bought into one with a locally run HOA with excellent reserves. It's also all single and dual level buildings within a bird sanctuary... 7 pools and 4 tennis courts for 500ish units, and I can't imagine buying a house with grounds as wonderful and walkable as these. Also... I hate yard work. At this time, I have every intention of retiring here and spending the rest of my days in my current home.
If the Florida housing market falls into a death spiral, that may change, but I'll cross that bridge when I come to it. Til then I've got some much nicer, more scenic bridges to cross daily.
Where I live condos are nowing going for $400-$500k+, in 2024, for 1/2 bd apartments, but single-family houses, in those in terribles shape, are going for $1m on average.
Housing prices have gotten out-of-hand many placed, and will likely get worst (especially where I live).
The people who could've bought when housing prices were reasonable are the only one benefiting from large equity increases over the last 10-20 yrs. Sadly I had to rent over that time.
Where is the condo complex that is in a bird sanctuary?
@@deirdrekiely6187 It's called Wildewood Springs. We regularly see eagles, falcons, ducks, cranes, egrets, etc. on the premises, along with other wildlife like raccoons, possums, gators, otters, turtles, and the occasional fox or coyote.
75k? Oh my god, i can’t imagine something being that cheap wow
I bought a first-floor condo and regretted it. The noise was astounding. I went top floor every time thereafter. I still don't understand why people don't treat their neighbors with consideration. My parents made my siblings and me tread quietly and use inside voices at all times, and that was in a single-family dwelling.
@@kitskivich ....That's because you were lucky to have good parents that didn't neglect you and taught you right from wrong. Last two generations of parents don't want to do the work, discipline, or teach their kids morality, integrity and the value of a dollar anymore.
At this point in time, I'd safely say that 75% of all parents are crappy, narcissistic, weak, abusive, neglectful, too uneducated and too immoral to properly raise kids. I know SEVERAL teachers, and they all say (after they've all quit their jobs) how absolutely horrible, disrespectful and psychopathic these kids are. They are ALL illiterate too. When Gen Z teachers say they can't take these kids anymore, you know there is a problem.
I hear you. My high rise condo was built in 1977. Super solid with good sound insulation. I can still hear my neighbor who keeps their radio/ streaming service going 24x7. Probably like how I keep a white noise (and cooling ) fan in my bedroom.
Newer construction is total crap. Built to last as long as the investor’s ROI happens. Like car warranties where the parts are designed to last as long as the warranty. Then you are SOL. What a waste.
Condo HOA dues go up because of the cost of upkeep of a building, etc. I know this because I am the treasurer. The same goes for the high cost of owning a house.
My parents live in a condo and they say the management company that is paid a lot of money by the residents (HOA) does very little work for them. They have searched for “better” management companies- and have had different companies--but, it’s always the same result-- poor service by the management company in comparison to the large amount of money they pay for the management service. Our HOA, single family homes, hired a management company a few years ago (we are in the second company now) and we get little to nothing (except sending out the HOA annual bill) out of the company. Residents can’t even get a returned phone call - we have questions and concerns regarding the landscaping company they just hired (using our HOA dues). They let go of the awesome local landscaper and hired a company from out of area that is doing a horrible job. And, when people call the Management company- calls and emails go unreturned. So, now the HOA Board is getting the heat and pressure to hire a new management company. But, is there a better one out there? Two out of two have been less than desirable, so far.
No it is because let that happening. Because some want a parking , the other one wants a plant, old people are weak and wants shots, like a shit area for dogs, and so on and so on. …. and because they are not working they find shit activity and yell to repaint the entire building when this is not necessary and want 10 guards are the building and chatting with them.
Scam
@@Neopitpitand they get mad when other tenants dont talk to them. They will silently stalk you and look for a reason to have you kicked out, its hilarious
Reasons 1 to 4 are why I didn't want a condo/townhome. The assessment was especially scary to me,since they are out of my control.
As a single, neurodivergent woman with executive dysfunction, owning a condo is the best way for me to own my home. My HOA is reasonable, I keep to myself, and it’s enough space for me to have a home office but not big enough to have a second person live with me.
It’s exactly how I want it.
It’s best to not say “never” when it comes to anything to do with real estate. One size doesn’t fit all and some of us just don’t want the hassle of a single family home.
Bought one 2 years ago. Felt pressured to “get in the market”. And we regret it. Building is from the 60s, and now that market has cooled, we couldn’t sell it without taking a big loss. Oh yeah, and we’ve got 2 babies now so this 2 bedroom condo is feeling tight.
Rent is “throwing money away” they said. Real estate “always goes up” they said.
If there’s a silver lining, it’s that we worked the kinks out with our first major real estate purchase so we’ll feel more informed when it’s hopefully time to get a house. But that’s a stressful lesson.
bought in at market high is never good. it would be an excellent investment, if you can take advantage of the lows.
well they say if you buy you need to stay for at least 10 years to make a profit.
I would never buy a condo because I'm an introvert and I place a high value on the sufficient amount of space I have between my neighbors and I
That kind of buffer is also important for I.
Guess that explains why the noise in my condo drove me to sell it...
I'm an introvert, and I want to play music really loud!
I bought a condo FOR the HOA. When you live in a house and your neighbor(s) wants to blast their death metal, party all night, practice the drums in their garage, leave their monster truck running in the driveway with the fumes choking you on your porch, etc. you have no legal recourse other than to call the cops - which gets you nowhere. In our condo, we had problem neighbors move in next door and reported them to the HOA - they got charged increasing higher penalties for each "no excessive noise after 9PM infraction" and finally packed up and left after 6 month. When the heavy snows come - the HOA deals with it, I don't. Privacy in a house? I walk around my neighborhood, where we have very nice single-family homes in a good neighborhood, but I don't really see the privacy. If you're trying to relax in your back yard, your next door neighbors can still look down into your yard from their second floor windows and vice versa. Sure you have the freedom to wrap a fence around your property, if you want, but you'll still hear your next door neighbors' screaming kids running around or their vicious guard dog going nuts on the other side of the fence. And houses are so oversized now, they're practically touching. You'll probably have a nice view of your neighbors' bathroom through your kitchen window. The stock video Ms. Baker provides of kids gleefully running around an expansive yard, doesn't reflect the reality for people. A nice home with acreage is not an option for most home buyers. Finally, it's a lot easier to rent a condo than a house. Condos tend to be more conveniently located near public transportation stops, grocery stores, banks, etc. Houses tend to be in the suburbs and require driving everywhere. The younger generation has shown little enthusiasm for car ownership, so renting a conveniently located condo is probably more appealing for them than trying to rent a more expensive, inconveniently located house. But yeah, Ms. Baker is right, try to get a top floor condo unit, if you can. 🙂
Exactly why we sold our house and now own a condo.
You sound like a Karen!
We have lived in our condo since 2007. Our condo fee is only $295, up from $150 when we moved in. The HOA replaced our roof and takes care of snow removal n lawn care. We have a community pool that we use almost daily in summer. We don't have to worry about neighbors not picking up dog poop or hanging inappropriate window drapes or placing old cars n stuff in their driveways. There is give n take, but we feel safe here n like our neighbors.
People like you are the reason videos like this are made. " old cars", "inappropriate window drapes"? Who decides what inappropriate drapes are? Get a iife
You are the Karens that condos were made for!! "inappropriate window drapes", that one really hit it home, that says it all!
@@bettysmith4527 No point in the name calling. She's just saying why a condo has worked well for her. It's always good to hear about the pros and cons.
Never again! Had one for 10 years. HOA fees went up every single year. Sold it when it was a sellers market and paid cash for a single family home. It was like giving my self a raise by dumping those HOA and special assessment fees!!!! ;-) - and to boot the condo was in CA. - which is turning to crap. Not in CA. anymore and that also gave me a raise.
CA is becoming a shi$hole, even for the wealthy
In Denver, HOA fees hover around $500 and up. This does not even allow for your own washer/dryer. Most units you have shared laundry. It also rarely includes parking. You'll get a mediocre pool if you're lucky. Rip-off
I guess it depends. I have an 1100 sf unit with river view, garage and a parking space, and in unit laundry.
I pay $210 a month, up from $185 when I bought in 1997 - in California, no less.
Our condo fee just went down from $645 to $488 and that fee includes gas heat (cold Northeast climate), public water and public sewer. It also includes a deeded underground parking space, elevator serving all 6 floors and nice neighbors who share their gourmet creations and help each other all the time.
Glad to see a positive comment. I love my condo. The pools are amazing, there are beautiful views, very pet-friendly, great neighbors, and responsible boards.
@@maryherje7120 you are lucky and have an ethical board, but your situation is the minority
Wow! That is unusual! So glad that happened for you.
@@denisepfahl3147 Agree. I wish it were the majority but it isn't so I sold my condo.
That is so not the norm. Count yourself lucky.
A friend bought a condo in an older conversion and now has a condo fee of almost 1k a month. I thought she was crazy.
Recently sold my first floor condo due to noise and dogs all over the place
There are two beautiful condo buildings in our city that do not allow pets, especially dogs.
@@athena3865People are noise as well
You just had irresponsible and inconsiderate neighbors, that sucks. I live in a soundproof concrete loft. I don't hear any neighbors.
OMG I had the same experience -a 15 month nightmare. Reason for buying a unit in a larger building but complete soundproof.
@@LindaLovesLofts unfortunately smaller and older buildings are not concrete.
Anyone who imagines buying a condo is a good idea should rent one first. That ought to be enough to see the seriousness of some of the problems such as the noise and lack of privacy and the woeful curtailing of exerting your own preferences. Even tiny mobile home park lots give you more privacy than the shared walls of a condo. Honestly, I would rather live on the road than buy a condo. Don't do it. Just don't do it.
As a 26 year Florida Realtor who has sold numerous condos I agree with you regarding the uncertainty of possible special assessments as well as rising HOA fees. Especially oceanfront condos require an enormous amount of exterior maintenance. The salt air is brutally corrosive and cause concrete spalling. Hurricane Ian then Hurricane Nicole knocked down may condo seawalls along our coast and pool decks and pools fell in the ocean. Master condo insurance doesn't usually cover the cost of the damage requiring special assessments to help pay for the restoration. Living in a condo is like living in a hotel. Too many rules. Lack of privacy. Can be noisy. Some balconies are not private. And the list goes on. As far as appreciation, what I have witnessed is that, like any real estate transaction, that timing is key. After the "great recession" condos in our area depreciated as much as 50% but now the price of a condo is out of sight. Far from being affordable. Condo sales in our area are often cash sales. You are right about FHA financing. There are not that many condos in our area that are FHA approved. Also VA loans may not be possible as well. There are even condos that can only be financed by a few select lenders. I would never own a condo either. The condo market is a volatile one. Values are like a roller coaster and HOA fees constantly rise.
I also agree with your other video about homes you wouldn't buy. You nailed that video too. Our experience tells us what to stay away from. Thank you for doing these videos. However, there will always be buyers that make bad choices, which is actually great for our sellers. Because, ultimately, we all sell condos and homes that we would never buy!
Several of my friends bought condos as their first homes, and bitterly regretted it for ALL of the reason you list in this video. It was one of the main reasons I went for a single family house for my first home. Feels like I dodged a bullet. Having to do yard work is a small price to pay for avoiding the pitfalls of condos.
She didn't mention all the reasons why living in a single family detached home is a real pain in the a**. And one of them is car dependency. When you live in a condo you are usually living in a pretty dense urban environment, you can walk to many places and live car free/car light depending on your area. To me car dependency is a reason why I would never buy a single family home.
You can't drive?
@@gigi9301 I can but I don't want to drive everywhere. Walking, biking,public transit are much more pleasant experiences
Buy a condo is good option but do not use all of your money, only 1/3 of your money, so you can sell easier if necessary.
@@bl1707 Yep they sit longer and sell for less, and don't appreciate as much in value as detached homes in the same area w/same ammenities. Fine if you never intend to sell but watch out for those HOA fees.
Exactly. The car dependency is soul crushing. It’s disgusting what it has done to many American towns. They aren’t even towns anymore. Walking is good for your mental and physical health. And problems with condos are also problems with house. You become prisoner of your house, lonely and sad living. My relative was suddenly in a huge debt because, he had a sudden landslide of his property and had to pay tens of thousands of dollars. Why did the county allow building houses where there are possible landslides? But, when it happened, he had to pay for it all on his own.
I had to subscribe after watching this today Jackie. I'm 65 and have never owned a condo, but intuitively I sensed there w/b a lot of downside to owning one. You just showed me I was right all along. Also, I like the way you think about whether it w/b difficult to later sell a home or not, as part of the "buying decision making process". That's what I've always done in buying homes. (Answer: selling a condo c/b very difficult to do....)
So glad you found it helpful! Thanks for the sub!
GREAT video! I know people with condos, never knew much about them. Bought a house a few years ago, NO HOA, nothing. I will never buy a place that is associated with any HOAs!
Even alot of new house developments have HOA fees now.
Unfortunately, due to the limit of physical land, that's all they seem to be building in the northeast.
What's amazing is that despite all the negatives, the prices are the same or more as a single family, not including the HOA fees.
Yep, you'll be paying $300k for a single bedroom, single bathroom, 500 square feet apartment.
Want the top floor? Well, if one is avaliable, add another $50k to $100k. Oh yeah, nobody wants to be at the bottom, so each floor up will cost 10s of thousands more.
And again, that doesn't include HOA and taxes. I honestly don't know how people manage. 😳
I really wonder why people want the upper floors. I have always preferred the first floor and if that is not available, then the second floor. Maybe it is because I hate elevators and I don't mind noises outside. And I want to get out of the building as fast as I can for any reason.
I agree
The condo may be $300,000, but I’ll bet the houses are $600,000. Also, I bought a top floor unit for security reasons. Most breakins are ground floor units.
@@whatevergoesforme5129 I would think the reasons would be concerns over break-ins and bugs (e.g. ants).
@@whatevergoesforme5129 I owned a first floor condo, and would NEVER do it again. Constant stomping above your head is awful!
I live in Florida and yesterday I saw on the news a condo in my city had a reassessment. It cost each owner $43k and there were safety issues. Now they evacuated the whole buildings and they don’t have a completion date. So now these people are displaced and paying for a mortgage they can’t live in.
I don’t regret my first being a condo it doubled in value… I also don’t regret selling it
If you want a foot in the door in owning real estate they can work but houses are better
I live in the 2 story Bretton Woods Condos in Ocala fl. Right now we havnt been negatively affected by new rules that apply to 3 or above levels.
Monthly fees are not bad at $208.00 it pays for all maintenance.
I'm happy.
I live in NYC and am lucky to own a single family house. Here we have condos and coop apts. Something people have told me is that there is a big problem with mismanagement by the HOA. Members if the HOA are actually embezzling money. Many of the condos in Manhattan are sold but empty. They are just investments for overseas buyers. There are many problems in that market.
Great advice! We spent many years - decades, in fact, in a townhouse style condo. It was perfect for us then. We didn't have to hire someone to mow the grass, or clear ice when it snowed. The roof wasn't our problem, nor was the parking lot. We had a GREAT location with a top-rated school district (and stand-alone homes were 5x more expensive in that district). But, the HOA was rather totalitarian - sending fines to families whose guests' cars leaked oil on the parking lot, or whose children played outdoors (to be clear, these fines were illegal, but it is nearly impossible to sue the association!). One member even lodged a complaint because a disabled child was allowed to move in without all the residents being "warned." And the fees were skyrocketing when we sold. We got out just in time.
I just wanted to say that HOA mean home OWNERS association. So if the fee gets too high, the homeowner can petition, to lower it. The management company and the president are the ones responsible for the fee, it’s not an invisible entity making the amount. Just putting things into perspective for you all. Condo’s don’t have to be having huge HOA fees, if the homeowners all start to get involved and not leave it up to the only 2 people deciding the fate of the majority of owners in the community. They ARE part owners, not renters.
That's not how it works. Depending on how much you spent for the year and want you need to spend will determine the monthly fees for that fiscal year. You couldn't go lower if the budget calls for these expenses like landscaping, HVAC, security, cleaners, annual fire alarm testing, pest control, waste disposal etc You wouldn't be able to do without these expenses so this would determine your fees and if you have parking or a locker.
Good luck bringing change to a bloated institution
LOL, they raise the fees because the HAVE to to afford the expenses, not because they feel like it. If you vote it down or put up a fight and they don't raise the fees, enjoy your hefty assessments down the road!
I am totally qualified to go conventional... But FHA is your friend! They protect you big time. A friend was getting so annoyed because FHA inspected the hell out of this Florida condo. She couldn't get it because:
1. there were too many rentals
2. it had a special assessment, and the seller did not inform
3. The property insurance was underinsured...
4. They require full inspections!
5. HOA fee maximum yearly increase MUST be in the covenance!
She ended up going conventional, and guess what? Her HOA monthly fee ended up being more than her mortgage! WTF!
FHA has LOADS of fees and PMI that is very hard to get rid of, along with some ridiculous requirements. FHA is NOT your friend if you can afford to go conventional! All of those things you listed can be easily researched in the condo documents the buyer should be asking for if they are considering any HOA type home!
@bettysmith4527 fha ha guarantee contingencies... and no... the hoa records do not have to be accurate in terms of rentals future or pass unless they are required. The buyer an get an easy out not losing ear est...this is one of the big reasons why sellers shun against fha. In this market where sellers are trying to get rid of their crappy house that they o repaid for without inspection, FHA will be popular for the next decade....lol
Condos are nothing more than an expensive Apt.
Yep! You GOT it!
its vry safe for woman living on their own.
@@asimskentzos9231 quite the opposite! your neighbors upstairs and downstairs can make your life a living hell..example, if they smoke and you don't....or if they stomp over you...or are loud in general...I know, it happened to me and I had to sell at a loss
@@ThisismeofcourseI agree. I dealt with upstairs neighbors making noise for years when I lived in an apartment.
Depends if you get the right one I’d say. I got lucky cause my monthly is 200bucks lower than rent. Also everyone seems super responsible. Haven’t had an issue this past year
Looking to refinance whenever rates go down tho. My rate is so ass.
I mean, to be completely fair, outside of Florida's .... entire thing, ANY appreciating asset that you're going to pay for anyway is better than renting.
Condos might have the same negatives as renting, but at least you own. A lot of people can't afford a downpayment and monthly bills for a 400k+ home, but they can afford them on something that's closer to 180-200K.
Very true! I want to purchase a condo soon, BUT those HOA fees are gonna be a killer
Thank you Jackie we watch you all the time and you give great advice. We're old and have a three family house that is paying all the bills for us and our old age and we have a wonderful life. But again thank you so much for all the advice you give your very smart woman
Aw thanks so much! I really appreciate you watching and I'm glad you find the videos helpful!
Noisy shared walls are reason #1 for many, beyond price. But the HOA rules can also evict bad eggs.
The good things about buying a condo: 1) no yard work 2) building is maintained for you 3) less to worry about if it’s a second home and you’re not there for long periods of time 4) easier and cheaper way to live on the beach 5) amenities provided like indoor and outdoor pool, exercise room, game room, library
Great points!
You’ve got to share the pool, the exercise room room and library with hundreds of other people. Not so much fun as having your own. I’d rather take the money that I’m paying for HOA fees and save for my own exercise room or pool
Buildings are supposed to be "maintained for you." You assume it's being maintained because you have no responsibility in the property. There are plenty of older condos that are not maintained properly, leading to all kinds of expensive issues. I know. I lived in one. Don't drink the kool-aid.
Yup, my first home was a condo when I was single and I loved it, I loved not having to do yard work and only having to worry about internal upgrades.
Condos are great for investment---maintenance of outside area & insurances are covered. Common grounds are kept free of tacky vehicles & noisy pets. Deferred maintenance is maintained in reserves. You might not have HOA fees on your non HOA property, but every 20 years get a big bill when your roof needs replacement.
Yes I think it is curious that 'Merican houses so often have those bitumin roofing shingles which last, as you say 20 years. In many other countries, such as throughout Australia and New Zealand (so climates ranging from cool temperate, alpine mountains, Mediterranean, desert, warm temperate, subtropical and tropical cyclone) various forms of corrugated metal roofing are very often used.
Even some old time original corrugated iron has lasted over 100 years with occasional painting. Nowadays they have colorbonded steel or aluminium metal sheets . So excluding catastrophic storm damage etc, yeah a roof should last 100 years on a typical domestic house. Sheetmetal roofs always survive hail-storms remaining waterproof no matter how bad (even if they suffer some damage which later gets replaced on the insurance). They lend themselves easily to capturing rainwater, which can be safe for human drinking in most areas, otherwise used as water for the garden and lawn etc.
America ! wake up and start using metal roofing. (Use the appropriate hurricane resistant fixings in high wind areas, and along sea coasts).
@@KiwiCatherineJemma Sorry to burst your bubble, but corrugated metal roofs are already very popular in the US and have been for a while.
@@KiwiCatherineJemmaThere must be a reason we don't use it in my area.
LOL, so you think if you own a condo you are not paying for a new roof, or new whatever? Who do you think is paying for it, a magic fairy? My mom lives in a condo and she has been there for a little over a decade. I calculated how much she has paid out in fees and she could have had three new roofs by now, but instead all she has gotten is a crappy fence, a poor paving job on the walkways and mediocre landscaping! Guess what, if she moves out next week she has shelled out 60K for NOTHING, because the new roof they put on in 5-10 years isn't even going to benefit her!! Also, have you not heard of assessments? You CAN get a BIG BILL when the roofs need replacing if there isn't enough in reserves, an just as a reminder, the money in the reserves comes from YOU the condo owner. I just think it's so funny all the condo owners that think that if you own a condo you aren't paying for any large maintenance items, YOU ARE, and even worse you have little to no say in who they pick and how much it's going to cost!!
@@bettysmith4527 When purchasing a single family home, the age of roof is calculated in purchase price. In a condo or townhouse, there is no deferred roof maintenance because a portion of HOA fees is reserved for long term projects, such as roof replacement. To each his own. I own 10 Tampa townhouses; my tenants pay these expenses in rents paid. My Mentor in business told me; " Do Well, then Do Good".
In my area Condo hoa fees are going up very high. Management companies are not maintaining the properties despite charging higher fees.
I saw this in Austin a lot. I passed and don't regret it.
Happening to me in a suburb of Houston. Pathetic deferred maintenance has the clubhouse closed on weekends with outdated amenities, yet we’re paying more each year. Wtf.
I've always lived in single family homes or unattached townhomes. A couple of years ago after a divorce and relocating to a different state, I decided to buy a condo because it was more affordable. However, it was the biggest mistake of my life. To make a long story short, due to noisy and inconsiderate neighbors I only lived in the condo for 4 months and owned it for 6 months. I sold it and got the hell out of there as it was causing me a lot of anxiety. The HOA won't help you when you try to get their assistance in these types of situations. They only care about taking your money and they will turn on you if they sense that you're complaining too much. Condos are overrated and sometimes they're worse than living in an apartment
I lived in a couple of condos, and they worked out fine, though that was many years ago. An upside is having a close in home with lots of cafes, shops and more around, with all the gardening and common area maintenance someone else's problem (unless you're on the board). The HOA problem is probably worse with single family homes than with condominiums, since very little of the condo is visible externally anyway. Just park within the lines in your assigned spot.
Special assessment risk is a thing, though.
Many of your points have counterpoints.
Those HOA fees are INSTEAD of the costs Homeowners have such as saving monthly for replacing the roof, for repainting the fences, for the gardener (not just mowing, but plant replacement and tree trimming), repaving the driveway (or access street); outer wall maintenance (e.g., painting) and INSURANCE. A good HOA is computing rates to meet budgets that project upcoming maintenance expenses and insurance payments makes sure dues/fees account for those costs. Whereas, buying a Pre-Owned home, the buyer isn't giving you their savings for all the upcoming expenses. No, instead, you're supposed to have it. You might pay a million for the home, and then have a roof that's at age 25 (needs replacement in 5 years). Did the prior owner transfer 83% of the projected costs for the upcoming roof repair to you? NO. They did not. BUT, if you buy the condo... guess what? The HOA saved that money and you're funded for the upcoming roof repairs.
As for price appreciation, the costs of the condos factors in the HOA fees. Low HOA fees, the better match in price they are to surrounding houses. The higher HOA fees (e.g., downtown towns may have fees as much as 4,000 a month), you will likely get a steel on the price of the Condo. Unfortunately, or fortunately, the 30 year mortgage payment in combination with property taxes, Mello-Roos, Special Assessments, HOA fees, and the like create monthly payments of which Supply and Demand dictates price. If it weren't for loans, surely the prices of real estate would be much lower.
Agree on noise of the neighbors. If buying a condo, buy one that has a lot of insulation between units.
Indeed. I guess mine is a townhome as opposed to a condo, but a pay a few hundred per month for snow removal, landscaping, and exterior maintenance. People are scared of association fees, but erroneously believe theyd otherwise keep that moulah in their pockets. Nope. Think how much it costs to buy mowers, weed wackers, garden tools, shovels, snow blowers, gasoline or batteries for same, garage space, sheds, lean-tos, fences, paint, tar, mortar, shingles. And then the one true non-renewable resource: time. Whatever you save on monthly fees you give it all back and then some across multiple trips to Home Depot.
@@75aces97 My husband and I love our condo, and living in it. It's affordable. 1000 square feet is plenty for us and our cats. The Board and the Management company deal with hiring the groundskeepers and exterior building contractors. Sure the HOA fees have gone up over the last 20years, We have never had not do I think we ever will have the need for a special assessment, as our Reserves are well funded. We now pay $300/month which is NOTHING compared to the jump in rent fees in our area. Someone was surprised at having to pay property tax... it's property that you own, I don't know how you'd be surprised by property tax, but since a condo costs less than a house, our taxes are more affordable. Part of our HOA dues goes to insurance for the building, so we spend little more than renter's insurance for our own personal property. Our electric heating/cooling bill is lower since we only have 2 exposed walls. While our being on the top floor our condo means we have the roof above us, those below us spend even less on heating/cooling. We love the 3rd floor:; we can leave the windows wide open all night and are perfectly secure. Our floors have some sort of sound reduction concrete, and any flooring we put down is carpet or has similar sound reduction.
Our buildings are well-designed, well-built, and well-managed. We don't spend the money and time for a house that we don't need, nor do we rent with the rising rental fees and no pet rules. We love it.
I have owned a condo in LA for the last 3 years and while some of this is true, it's a bit embellished. First, HOA fees have definitely gone up since we moved in and we have had a special assessment due to insurance increases. However, if you own a single family home, the expenses covered by HOA fees have also gone up. It's just that 100% of the burden is on you, the homeowner.
Where we are, a 3 bed, 1600 sf single family home on a 6,000 sf lot starts at $1.8 million and goes up from there, so unless you're loaded, want to move to a bad area or enjoy spending multiple hours a day in the car, you're looking at a condo. We bought a larger 4 bed condo for way less than that and have a sub-3% interest rate. The assessments and HOA fees stink, but seeing our rent go up every year and never knowing what the annual rent increase would be was worse.
As for the noise, rules and other items, those are not big issues for us at least. Our HOA doesn't bother you unless you really leave a mess in the common area or want to do a renovation that could alter the structural integrity. We have not had any issues with noise (we only have two common walls). Since we are on the second floor in the back of the building, we actually have a lot more privacy and security than people in single family homes on their small lots. I will say you need to do your homework and even then it may not be enough. You also REALLY need to go to the HOA meetings as annoying as they can be.
It's not perfect by any means but we have more control of our unit than we did when we rented and we also have much more space. Realistically, if you live in a typical suburb with reasonably priced homes, a single family home is usually the better option, but in major cities on the coasts, if you want to own, you're probably going to have to look at condos. Just make sure you know what you're getting into.
I agree-in areas where the cost of real property is at a premium, condos can be a great option to own-but with the caveat that you absolutely have to know what you’re getting into!
You can sell a house with a new roof much easier than a condo with an outrageous condo fee. Condos are massive structures that age terribly. Get back to us when you've been in your condo for 30 years and want to sell.
I got news for ya... if they need to do an assessment for an increase in insurance they will also likely be doing an assessment when your roof needs to be replaced or your sewer line needs fixing!
Never buy a one-bedroom condo. If you have two or three bedrooms, you can rent out a room or two. ❤
@misslinda772 I did just that. 2 bed/2 bath so me and roommate gets privacy and share the living and kitchen areas. It’s working out well so far!
That is strictly not allowed in my complex.
Yes.....exactly my thoughts so many years ago but after trying 2 roommates=strangers, my 2nd bedroom ended up empty.
for owning no land, condo owners have to pay property taxes too. In addition to the monthly condo fees
Yep. I didn't know of this before I bought my condo since the sales agent didn't tell me. After learning of this tax and the condo fee that keeps rising and the restrictions that I hate, I finally sold my condo. If I will pay property taxes, I need to make sure I "own" the land as well.
I bought a condo with my former spouse and had to deal with a new roof assessment for years to come. That and a nightmare of an older tenant who lived behind us. We could barely play our music at a reasonable volume before the cops were called. His justification was that if he could hear the slightest bit of music from any of the units he would call the authorities with a noise complaint. We were in our mid 30s at that time and lived rather low key so having the cops at our door for noise was a total buzzkill. The officers heard the volume and were quite sympathetic to us 😄
Where ear pods or head phones. Don’t bother anyone that way
Joanna 185:Moron.
If an old person can hear your music you should wear ear plugs. Older people don't have the best hearing
@@bernadetten.8751 Not an old person, was in his late 50's but his hearing was pretty keen. There was a time where the board held a meeting at his home and he freaked out over someone's music next door to him so no he wasn't elderly nor deaf nor hearing impaired. He was simply a controlling knob who was finally served a harassment complaint after several tenants got fed up with the nonsense. I remember it was either the town ordinance or maybe even the bylaws which had a clause stating music may be played at reasonable levels. He stopped his nonsense once folks got fed up made the harassment complaint. Life was tolerable for several years until we finally moved from there. 😄
@@gregq3474being that his ears was super sensitive he should have been the one to wear ear plugs lol
I lived in a condo in Raleigh, NC for 21 years and had a good experience. The homeowners fees do increase generally annually. However, you have to allow for adjustments due to inflation and increased expenses as buildings age. I was on the HOA board for 6 years. In our community, the HOA was responsible for the roofs, siding, landscaping, roads, community lighting, community insurance, and very expensive retaining walls. I sold my condo closing in 2023. I moved out of that area for personal reasons. I miss my neighborhood, my neighbors, and my beautiful community and former home.
Scam
Bought my first townhouse in a condo 8 years ago and realized my mistake within a few months for all the reasons mentioned in the video. Been saying since then never again!
Large HOA condo fees are usually new roofs, windows, siding, etc. Near Portland, there are 250K condos with $900/month HOAs - imagine trying to sell one.
Regarding high-rise condos; YOU GOT THAT RIGHT ABOUT NOT BUYING THEM AT ALL - THANK YOU INFINITELY
HOA fees are nothing more than what you’d have to pay for you owned a place without an HOA. Jackie is taking a very few instances and saying this is happening all over. That’s not the case. In Florida, it’s required that a prospective condo owner be given a copy of all HOA rules prior to purchasing. You’re required to sign to say you’ve read these rules. If you get surprised later, it’s your own fault.
Not where I live. I guess if I hired out every single homeowner task like a condo it could cost as much, but my insurance is less than half (BC Canada strata insurance crisis) and most things I do myself. Snow removal contracts for even little complexes with not many owners that line item alone can cost tens of thousands a year. and it doesn't snow much where we are but complexes must have it for the liability. in my SFD- I shovel. and that shovel cost less than $30 10 years ago.
that's not even touching the dozens of other little jobs I do myself so my only costs is my time and materials
Listen to Jackie. She is right! Perhaps condos can be a winner once in a while, but I would never buy another condo. I bought one before and it was a nightmare. Loud neighbors.
Really appreciate your videos, Jackie. Thank you
You're so welcome!
As someone who doesn't know anyone that owns property this video was very informative. Always assumed once you buy something that's yours and won't have any more expenses
Excellent video. I'm in a condo/townhome in the DFW Area but it works in my situation. Its not an investment. I didn't buy it with plans to sell it later on. It's my retirement home. I own it free and clear along with my car and anything else I have. I'm debt free, in my 60s, and don't miss having to do maintenance around my property. HOAs are the devil, but the devil is in the details. Our bylaws restrict the HOA Fee from going up more than 5% per year. They have raised it that much four years in a row. Because of the storm that hit here in Feb 2021, insurance prices have gotten ridiculous. The HOA wants to do Special Assessments but the Bylaws state that 61% of the owners have to approve. In the four years I've lived here, they never get close to that number, so it hasn't happened. We have another one coming up to be voted on where they are trying to get everyone to pay $1200 for a year. That's an extra $100 a month on top of the recent HOA Fee increase. Yeah, that's got about as much of a chance of passing as a snowball has of surviving in the open during a Summer in Phoenix. I know I will be voting "no" and so will the other owners I spoke with. The rules here don't bother me, and I have no remodeling ambitions. It's way too much work and I have a bad back anyway. I love your videos and I agree with you, but I think condos or townhomes can be right for the right person as long as that person is informed and knows what he/she/they are getting into.
If your building is old, the special assessment might be because it needs some serious repairs-new elevator? Replacing failing wasteline pipes? Repair of spalling?
@@chezsuzie I know what it's for. I'm on the board. They are townhomes. They were built in 1983. There's always something that needs to get done. We have roof repairs coming up.
In Australia we call these body corporate or strata. My first unit (semi detached single dwelling) was a strata. Strata had its drawbacks but enabled me to get into the property market. Horses for courses, as long as you have a plan these types of dwellings can definitely work! ..
It’s not just condos that have rising HOA’s.🤪
True, but condos have far higher HOA fees. It's not even a comparison.
😜
Condos are a ripoff.💰💰💰💰🔥🐀
Los Angeles here. I previously lived in an HOA condo community. I now live in a gated, HOA community in a single family home. NEVER had an issue with the HOA boards or the rules. In my opinion the HOA rules prevent people from exercising their worst impulses (ie. neglecting landscaping, letting exterior get run down, trash cans left out for weeks, etc). I embrace HOA rules - just works for me.
So why would I NEVER buy or condo or townhouse again? SHARED WALLS. As you said Jackie, you can hear everything. I ended up with a horrible condo neighbor who loved his subwoofers & surround sound. And was a total creep. No thank you. I moved. Shared walls never ever again!
I think HOAs are the real owners, not the houses owners .
Thanks a lot for your clarification before I get into this mess
you can say that about the government being the real owners because of property taxes. Another unintelligent comment
@@PlasticPelletsthis but unironically
Pertaining to resale, when selling I would imagine that you might only get as much as the lowest previous condo sale has been previously. Unlike Owning a single-family home, your condo does not have any individuality where it can easily be differentiated from other houses in your area. Also a sudden unexpected large special assessment can literally wipe out years of price appreciation Of your condo.
which is what happened to stepmum
Bought in 86 when HOA was 100/month..by the time we sold in 2020 HOA was 1000/month
My GOD..thats a Mortgage Payment !!!
While HOA fees are going up, so is insurance -- especially in Florida. This is also true for houses where insurance is also skyrocketing (especially in Florida, if you can even get insurance at all.)
Aluminum foil 200ft by 12 inch roll - 16 bucks at Albertsons
Also important to find out how many units are used as investments and occupied by renters because this could impact your ability to secure financing. I know some lenders will not offer loans for condo units if the percentage of renters is higher than owner occupied. Something to think about. And if you’re an investor thinking about purchasing a condo as an investment, please do your due diligence and find out if that property has a cap on the number of units they will allow to be occupied by renters. If so, the number of rental units allowed by the Association may already be at the max. May not be a good investment for you at this time.
Anyone wanting a condo because they assume lawn maintenance etc. will be taken care of, think again. I'm so glad I sold my "townhouse" 20 years ago. In addition to knowing a special assessment was coming, they sent us a letter stating that all lawn maintenance will be the responsibility of the homeowners. I sold before it took effect but how in the world would that work? No way to know where my property line was since I owned none. For these high fees you could hire several lawn care companies, put a new roof on your house ever other year, etc. Edited to add that I almost couldn't sell, they claimed I missed a payment, no-I consistently paid early and they misapplied an early payment as two for one month.
I am from Montreal and work downtown. I lived in condos for many years. Now living in a small one bedroom unit near downtown but quiet area - concrete do not hear my neigbours unless I am on my large balcony. The good news is hardly no one is on their balconies. Most have second homes. I prefer strict rules like no Airbnb , limited number of pets and no short rental lease contract. If you choose the right district and builder, you might not make a huge profit however you will sell and make some, or at least get all your investments.
25 years ago, my choice in Seattle was to buy a condo in Seattle, remain a renter, or become a road warrior spending 1 1/2-2 hours a day stuck in traffic to and from a house I could afford in the suburbs. I bought the condo.
I used the time I saved not doing yardwork or sitting in a car to work more, save my money, and then buy and manage a rental. After a few years, I sold the rental and invested in a commercial property. Now, my income from the commercial property will be greater than my social security income. Seattle rents are now typically over $2,000 for a one bedroom apartments. In 1 1/2 years, my mortgage will be paid off, and I have over a half million dollars of equity. Living in town, I've been able to commute by bicycle and not get unhappy and unhealthy sitting in a car in traffic. My car savings also contributed to my being able to afford the rental.
In lower cost areas, houses are a viable option, but in more expensive areas, the choice is becoming to get a condo or stay a renter.
You are so right! Car dependency is a pain. And there are also many expenses associated with car ownership when you live in a single family home neighborhood. (Average annual car ownership expense is up to 12k now). When you live in a condo in a dense urban environment you usually don't need a car!
Even in South King County, home ownership isn’t a thing for most people anymore.
I agree with most of your points and would never own one myself, but did want to clarify something: just because a project is not approved by HUD, does not mean it is ineligible for FHA financing. There is a process called single unit approval where the local HUD office will review condo docs and permit a single unit from an unapproved project. It’s done on a case by case basis, so the next time a borrower wants to FHA finance a unit in the same unapproved project, the underwriter must complete the process again. It’s a pretty tedious and exact process, but does happen with a solid rate of approval. Sometimes a project is unapproved solely because a borrower never sought FHA financing, but this is not a case for all and IMO says a lot about the project when it doesn’t fall into that bucket. Keep up the great work!
HOA needs to be abolished. It really doesn’t serve any purpose imo.
I don't see the need for HOA's when it comes to single family homes. For condos and townhomes, I can understand the need because you're attached to your neighbor.
Why are you commenting on a subject that you know nothing about? Without an HOA, who would take care of the common areas?
Taxes @@Omar_Zazzle
@@Omar_Zazzle The guy with a truck load of weed eaters and blowers.
@@Omar_ZazzleIndependent people who get paid to do that not some not some money hungry organization who half the time don’t even do what they are intended to do but still charge people for the service
Yep, I sold my condo after realizing that it was so restrictive with all the rules, plus the monthly condo fees. In comparison, it is better to have a house and lot or even a townhouse where you at least own the land since you still pay property tax for any type of housing.
I was kinda sales talked into buying one and didn't do enough research so I regretted it.
Condos have never been an affordable option..I remember wanting one in 2008 and they cost the same as a single family home. I am talking about the high rises and lofts, not rental apts for sale with lower quality construction
Yes, far far more expenses in a mid or hi rise.
The top floor is not the best option, as the equipment such as HVAC and Chillers can cause vibration noises. Also if the elevator stops working you would need to walk up and down all those floors. Also no smoking in some condos including the balcony. Some don't allow BBQ on the balcony.
You can also go through the same things if you have a single family home that is a row house. I experienced the same things.
except that you own the land
@@whatevergoesforme5129 True but, if you have bad neighbors like what I experienced then it's a problem. I bought a condo after selling my home. I could not take the neighbors anymore and the things they were doing. It did not help appreciate my land. I don't have a problem with condo rules sometimes it can be a good thing. It just depends on what you can and cannot deal with.
Thanks for mentioning the noise. People really have different sensitivity thresholds. My sister had a condo in NYC across from Trump tower, but the woman above her was a night nurse who'd enter with clacking high heels at the wee hours. My sister politely asked if she would just take off her shoes and she gave a rude response.
I can't stand the pounding of a boom box. People often sit at parking spots with that damned thing going.
It amazes me that there are obviously millions of people who negotiate these sounds and worse and seem to be fine.
I get it, but there are people who live in a flight path or on a busy street. It's all about tradeoffs. Getting everything you want can be expensive to impossible.
Don't forget about potential leaks/flooding from the upstairs unit to the unit below. I experienced two major leaks and significant water damage within the six years of owning my condo. All of this on top of the other cons mentioned 😮 No more condos for me!
Excellent information. Thank you ❤
You are so welcome!
It depends on what the condo fee includes as well whether the amount is reasonable or not.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who witnessed the 2008 financial crisis can expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
My CFA, Desiree Ruth Hoffman, is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
Thank you! I was planning to buy a condo next year but after a few videos from different channels, I will either buy a house or just keep renting.
We have an amazing management team at our condo. Keeping everyone apprised of the math and expenses of a luxury condo. Fully funded reserves, fully scheduled maintenance and scheduled replacement. No deferred maintenance has prevented surprise assessments. The vast majority of the owners are elderly, quiet and keep to themselves. This has worked well for us as we have zero interest in maintaining a house and property. Knowing all about the HOA is more important than what a condo looks like. Cheap HOA fee is a HUGE red flag.
Very good advise. I've been owning and living in a condo for 19 years now. It is horrible! I am ready to sell now but it has been difficult to find a small house for me.
I owned a condo for a few years as my first house and I swore I would NEVER buy a condo again, and the #1 reason is the noise! Chances are you have neighbors living above, below, and next to you, and as Jackie said, condos usually don't have the best construction and that includes soundproofing, so you get people stomping right above your head, neighbors playing their stereos and watching movies, etc. When you have 5-6 households living just a few feet from you, even if one of them makes noise, it would make your life very difficult.
Ditto that!! I bought a garden style condo brand new as my first home and after a few years I couldn't take the noise any longer, it was brutal, between the child stomping above me all day every day, and the constant yelling at the kids behind me and loud music from all shared walls... I had enough!! I don't think I could do it again, ever! I broke even when I sold it, but I didn't care, the best day of my life was when I moved out of that place!! It was a great starter home, and I loved it otherwise, as it allowed me to ease into home ownership, but my SFH is WAY better!!!!
@@bettysmith4527 Where I grew up, condos are built with concrete, so the soundproofing is way better, and I made the wrong assumption that that was also the case for condos in the US. Lesson learned!
@@stewarthoi Most condos in the USA are not built of concrete, they are typical stick built!
I sold my SFH for a condo, and I prefer it actually. Heating is taken care of, which was a big expense coming up with my home, and ive had other pipe bursts, stupid shit going on there too. Also, for a good price, I'm now 10 mins from a train station that gets me into Chicago within 30, vs being 1hr 30 from a city.
Condos in nj doubled in last 5 years some even more
Personally I love living in a condo,and yes there are dues that increase every year but that's only because prices of EVERYTHING else goes up every year ,such as cable, lawn maintenance ,pool maintenance... same as owning a house and yes there are certain rules that you have to adhere to like not being able to park your boat and trailer in the parking lot (gasp!) It's a parking lot not a marina. I've lived in condos for over 30years and yes there are ups and downs just like owning a home and you just deal with it. I have heard about some condo associations being a little bit over the top but thankfully !mine is pretty good.
I’ve owned two condos, and both sucked because of noisy neighbors, not the HOA. Never again! However, a lot of single-family houses, especially new construction and 55+ communities, have an HOA.
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