Haily: Why is buying a condo so much cheaper than buying a house?
What`s the catch? Its also cheaper than renting in many cases, if you`re planning on staying for a couple years. I guess that depends on the area, but in many cases it is.
So what`s the catch? Do you really own it until you choose to sell it? Why are they so much cheaper than buying a house and even renting in some cases? I realize they would be cheaper than a house, but its a huge difference.
Answers and Views:
Answer by AJ
With a condo, you have no backyard and shared walls and roof. This alone is enough to explain some of the price difference.
Also, you have restrictions. You can’t alter anything on the outside, in some cases, you can’t mount a satellite dish or put furniture on the deck.
The association costs may include things you don’t care about such as pool/tennis court maintenance, security, landscaping, ton of insurance and so on. These would be costs you wouldn’t have in a house.
On the other hand, condo could be a really good deal compared to a house. Less headache because the association takes care of all the outside maintenance. Shared costs of insurance, water, maintenance, and facilities are usually much, much lower than the same things you’d pay individually on the house. After all, you’d be sharing a pool, getting a group discount on insurance and so on. And restrictions may be beneficial, if in moderation.
There is no catch. You do own it as soon as you sign the loan, same as a regular house.
They are cheaper for a couple reasons: 1. They are usually much smaller. 2. They usualy have no yard or a very small one. 3 You only own from the walls in. You do not own the land around or under your unit. That is why you pay an condo association for outside maintenance.Answer by dragonfireresurrected
because there is a huge over supply of condos right now
condos, traditionally, have never really appreciated in their values compared to a house, so their values are always lower, ans since there was a run up in condos ( as people during the bubble sought a cheaper form of real estate ) and thus over drove the prices of condos. consequently condos took a huge price correction and many are bank owned., thus really driving prices down.
your association fee will be one thing to watch, also the association can make assessments as it see fit if it’s the interest of the community health and safety, so older condos might be hit with mold or asbestos abatement which is not covered by insurance and association fees
also no association can ban the mounting of dish antennas under Federal law, though they can try, you can easily sue them ( and in a sense sue yourself since you are a part of the association )Answer by Jon F
Having lived and owned both….here is the downside of condo. You often share a common wall, I had a neighbor who would crank his TV…,,,you may not like your neighbors, and they can be “condo commandos” (they live to “catch” anyone violating the condo rules)
If most of them decide the pool is too small, or the parking lot needs repaving ( or whatever) EVERYONE has to pay. Think of it as joining a club and you agree to all the rules….Make sure you investigate if their are any” assessments” that have been levied on all the condo owners. You would inherit the “bill”
By the time you pay Condo Association Fees, insurance, it might be cheaper than a house but it can add up and be more than renting.
Also there are many condo buildings in Florida right now that are half full. 1/2 the people are paying for ALL the costs of the association.
Get someone who specializes in condo Real Estate to help you.