The Advantages and Disadvantages of Buying Condos over Houses

Purchasing real estate can be a time-consuming and laborious process, and buying real estate will be one of the largest and most important purchases of your life.

If you're debating between buying a single-family home or a condominium, you will want to consider the following advantages and disadvantages.

To simplify the decision (house or condo?) it really comes down to several key issues.

If you want to own your piece of the American Dream, including your own backyard and all the upkeep that entails, buy a house. If you are looking to live maintenance-free and enjoy leisure-time amenities, a condo might be for you. Do be prepared to pay a monthly fee for these extras.

If you have a family of five and you want room for the kids to roam, a house might be a better choice. While not written in stone, the majority of condo owners tend to be singles, couples just starting out and folks over 50 who have owned a home and now want to be free of significant maintenance.

There was a time when the resale value of houses nearly always surpassed that of the condominium. That is no longer the case. As condominium ownership becomes more commonplace and more complexes are built in the most desirable areas, you can expect resale values to be comparable.

If you decide you want to own a condominium, here are some important steps you should take before signing on the dotted line:

Speak to your prospective neighbors. Ask questions of several owners or tenants and find out how satisfied they are living there.

Walk the entire property; you'd do this if you were buying a house. If there are swimming pools, a gym, party room, etc., you can see if general maintenance is up to par.

Ask to see your assigned storage space and take measurements. These areas fill up quickly and this exercise will help you in determining what to bring along and what to leave behind.

Most condominium associations hire outside firms to mange the property. Contact that firm; determine if they are quick and courteous in their response - this could foreshadow future dealings with them. You will probably have more contact with them than you might imagine, so be sure they are easy to reach. Do they have an office on site? Some management companies do offer access to on-site staff, which can be immensely helpful.

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Before buying, consider sitting in on a board meeting (most condo boards meet monthly). You will learn the types of topics on the table while observing the orderliness of the meeting, or lack thereof. Does the group appear cohesive and likely to get things done?

Find out the age of the buildings and if there are major repairs/improvements planned. Review the budget to see if there is enough money in reserve to meet these and other expenses. If not, you may be facing a raise in your association fees or special assessments soon after moving in.

Read the condo association by-laws as well as the rules and regulations-- there you will find information on parking for visitors, use of common areas and other helpful guidance.

Consider having a contractor inspection of the unit, as you would have if purchasing a home. You want to be particularly sensitive to noise issues above your unit and next to your unit.

In addition to your mortgage, condominiums charge an association (or assessment) fee; ranging from $100 to $900 or more per month depending on location and other factors. These fees are for general upkeep of the property; including lawn mowing, tree trimming, snow removal (where applicable), security, laundry equipment, building insurance, pool maintenance, etc.

The larger monthly assessments usually include utilities, such as heat, gas, water, and electric and may include elevators in each building. Other services may also be available in the "higher end" condo complexes such as: free local transportation to and from shopping, trains, etc., concierge service, exercise classes, spa treatments, hair stylists and more.

Having done your due diligence in advance will pay off. Make sure you know what you are stepping into, and whether it will fit with your expectations. As we all know, bricks and mortar only make the house (or condo)-- it's what you put in it that truly makes it a home.

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