Sell or keep condo?
Should I move into a stand alone house and sell my condo?
I bought a condo for $195K three years ago. It's now tax-valued at $260K but could sell for $245K. I currently owe $180 on the condo.The HOA fees are going up to $425 per month. When I purchased the condo, I told the realtor I didn't want to have to pay more than $1500 per month in total expenses for everything including utilities. At the time I didn't consider the condo cost going up every other year. I'm considering buying a stand-alone house to save money. Ideally I want the same payment for the next 30 years, sans condo fees.
I'm single and aren't convinced that the cost of water and maintenance on a stand alone house would cost more than the rising cost of condo fees over 30 years. If I continued to pay $425/month in HOA over the next 30 years, it would cost me $153k.
At this time, the average cost of a 2 bedroom home in my area is $275K.
Should I get rid of the condo and buy a house?
- 8 months agoFavourite answer
Yes. Move out of the Condo. But watch out for HOA's in stand alone houses too! HOA's are the ticks of home ownership. Also, Do Your Research as to who, how, and when the stand alone house was built. I've seen some really, really poorly built houses that will cost a fortune in utility payments and repairs. In my state, there have been new housing that went into sinkholes. The builder didn't do proper surveying and due diligence. Many times, the older home is better built, but lacks insulation in the attic or walls because it didn't matter back in the 1960's when electricity was cheap.
Frankly, I am amazed where your first paragraph states that your taxes are OVER valuing your condo....Something smells there. You can go to the county tax dept and fight that, and I urge you to do so. But you must have good paperwork in tow, such as a current professional appraisal of your condo, and a lawyer wouldn't hurt either.
Overall, it sounds like you live in a very costly city or county area. Each county varies a little on their property taxes, so do your research and see if you can move outward to a more reasonable area. Perhaps you can work remotely from home, thereby moving quite a ways out from the central city.
I sincerely hope it all works out for you. HOA's started off with the right idea a long time ago - but are now filled w/ quasi-nazi's who can 'acquire' money and power out of them.
- Beverly SLv 78 months ago
I would. Just make sure it doesn't have a Home Owner's Association or you will have the same issue. You will also be responsible for yard work/maintenance.Source(s): Mortgage lender 33 years.
- Anonymous8 months ago
Move to west virginia. Housing is cheaper.
- Anonymous8 months ago
If you sold the condo, after the expenses of sale and a REASONABLE appraisal you might come out with 20K and that might be enough to meet the expenses of a purchase.
Current HOA fees would like pay your utilities each month depending on where you live
Tax based appraisals can and do lead many people in the wrong direction as far as true value as those tax bills bear a value that you might never get for a given property.
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- Anonymous8 months ago
I personally prefer a stand alone single family residence. There are no HOA fees, only property taxes, insurance & utilities. Houses go up much faster than condos, and most condos seem like an apartment to me. I always notice HOA fees keep going up & up & up. I never have believed all the money they collect from everyone is used for maintaining the property. I also don't like how condo association have meetings with people fighting each other. No thanks to condos.
- SimplytheFACTSLv 78 months ago
how do you think a house will save money? houses often cost more than condos. utilities cost more, some repairs are more...for example, you are 100% responsible for the cost of a new roof with a house, with a condo, you share that cost.
with a house need to heat the whole house, with a condo, typically you are just heating a smaller apartment....
what does the HOA fee cover? at that rate I would hope it covers heat and hot water. does it cover a club house/gym? if so would you pay to join a gym if you had a house?
I assume the HOA fee covers lawn care, leaves, snow....how much will you spend on lawn care in a house including purchasing equipment or paying a landscaper...
a 225K mortgage will be about $1000 month PLUS property tax PLUS higher insurance (PMI if necessary, home insurance..insurance for a house is easily $50 more per month MINIMUM...just for basic (no flood, earthquake)....PLUS the utilities that were included in your HOA fee.
heat/hot water/water/sewer could easily be an average of a couple hundred per month
whether you may save money really depends a lot on what is covered by the HOA fee, which you haven't fully stated...if that amount doesn't include heat and hot water, it is definitely excessive
how much has the fee gone up? it is common for a small yearly increase....typically no more than 25/month, but usually a lot less...staff gets a pay raise, costs for contractors goes up, material expense goes up. If there is an HOA owned (where the head maintenance guy lives) unit that will have property taxes, etc