Pros to Buying a Condo

Some advantages to owning a condo are:

• Luxurious facilities, amenities and common areas: Most larger condominium communities have lots of amenities such as: Swimming pools, Spas, clubhouses, BBQ areas, tennis courts, jogging trails, recreation rooms, gyms, golf courses, park areas and pet parks/areas.
• Security. You may feel more secured knowing there are other people residing in close proximity. Also, condominium complexes are often gated or staffed with security guards and have security systems.
• Concierge services. Many condo complexes have doormen and front desk people, along with a custodial staff.
• Less maintenance and upkeep. No yard maintenance or other exterior maintenance or repairs. You are generally responsible for only your unit’s interior.
• Great features: Some newer condos will usually have open floor plans, stainless steel appliances, granite counters, pre-wired for internet and TV.
• More convenient location: Condominium communities are usually located in desirable locations such as: downtown areas, near major shopping centers, near restaurants, popular recreational amenities, entertainment and transportation.
• Social connections: Neighborhoods of detached single-family homes tend to create distance between neighbors. Condos are much closer to apartments in this regard. Your home is literally surrounded by other units, and you may have others living above or below your unit. This creates a level of intimacy that doesn’t exist in large subdivisions. And since condos tend to attract people of similar backgrounds and interests, there’s a greater likelihood of co-mingling socially. Activities are even more pronounced when there are common recreational amenities to congregate around, like swimming pools and gymnasiums.

Cons to Buying a Condo

The downsides to owning a condo is primarily the characteristic of apartment life or communal living:

• Close to neighbors: Sounds and smells can travel through adjoining walls
• Condo fees generally continue to increase: If the building is older, it could require more reserves to cover the cost of roofing, plumbing, and exterior maintenance, which tends to mean higher fees and sometimes special assessments.
• Special Assessments: If there are extensive repairs to be done to the community and not enough funds are in the HOA reserve account, there may be Special Assessments for each unit owner to cover the costs. The total assessment amount can be paid monthly along with the regular HOA monthly fees.
• There are community and conforming to rules to abide by: For example, there may be restrictions on the number and types of pets you can have, where you can smoke, etc.
• No matter the layout – a condo is not a house: Most condos are single-story. Therefore, the overall square footage of a two-bedroom unit may be smaller than that of a two-bedroom house. The condo may feel more compact since you won't have the hallways, windows, stairways and other features that the space of a single-family residence will have. And, a condo usually won't provide a private garden/yard area or a driveway.

Selling the Condo

You should consider the future marketability of your unit when the time comes that you wish to move on. The following are 2 important things:

• Your unit may never be worth more than an identical unit, plus upgrades.
• The condo complex may not be approved for FHA or VA financing
• If the condo complex is approved for FHA or VA financing, and the occupancy percentage of owners vs. tenants exceeds a certain percentage (per loan guidelines), then a buyer may not be able to get the loan and as a result, a buyer would need to pay cash or obtain a conventional loan or mortgage. This restriction could affect the number of available buyers when it comes marketing your condo for sale.

Why a house is a better idea than a condo

• Having some land: Technically speaking, owning real estate entails land. With a house, you own the land which is one of the primary advantages of owning a house. The house also needs to be maintained but well worth it. On the other hand, with a condo, you only own the unit (only the inside of the unit).
• Greater self-determination and self-expression: One of the inherent disadvantages of a condo is the uniformity. Since you don’t own the exterior of the condo unit, there is nothing you can do with it. On the other hand, with a house – you can paint it any color you like, build a playhouse in the backyard, put in flowerbeds and herb gardens.
• Room to grow: Being that you own the land under the house, as a family grows, you can also grow your house. You can add an extra bedroom, bathroom or other rooms. You can build a deck or covered patio in the backyard. In some cities, you can even build a guest house on the property. You can’t do any of this with a condo.

Note: For residential lots, the City of Los Angeles now allows the construction of ADU’s (Accessory Dwelling Units) on the property.

• Better accommodates life changes: If you live in a house and wanted to start your own home-based business, you can. In a condo however, you may not be able to do this as the homeowner association may not allow it.
• Generally easier to sell than a condo: In a bad housing market, a condo can be tougher to sell. However, detached houses on privately owned lots tend to be more liquid in all types of markets.
• Individuality factor: Each house is unique, particularly after it’s been customized by its owners, so there’s a greater likelihood it will appeal to specific buyers.

Condos on the other hand, are uniform. They are very similar so one unit won’t necessarily stand out from the rest. If there happens to be a few units for sale in a condo complex, and depending on the market, it could take several months to over a year to sell. This is one of the major reasons why condos are often converted to rentals.