NEVER Buy a Condo
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- Опубліковано 12 січ 2025
- 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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Want to know which types of houses you should never buy? ➡ua-cam.com/video/6XXjKV37gSk/v-deo.html
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.
how do they get a way with such scam?
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
My HOA IN FORT LAUDERDALE FL WENT FROM $430 TO $1400.00 PER MONTH! I politely sold it and moved on. The People who didn't do the same are now situational hostages! No one wants to buy there with that high HOA. The only amenities are the pools. THATS IT!
Sure I bought years ago but my mortgage is only 1,250. 1400/mnth in HOA fees is criminally insane.
Yikes 😳
It went up that much because insurance costs in FL have skyrocketed especially due to recent hurricanes.
Holy cow! That is so crazy! How can anyone afford that?
Happy for you that you got out. I just sold in Pompano and am now happily renting.
I bought my first home at 23 and it was a condo. Were the HOA and neighbors a pain? Yes they were. But it was also a good way for a young single woman to ease into home ownership (I was only responsible for the maintenance inside of my unit) and I pocketed a lot of equity when my husband and I sold and moved into a home. It can be a good choice for some people.
Yeah, I always saw condos, townhouses, and manufactured homes as a good short-term starter place. Long-term I feel like you'll be bleeding money. Once you build some equity you can sell it and get something else. Either that or rent it out.
Before condos where cheaper, now they are overpriced and comparable to home prices….and HOA fees …well they were low to but now to high because of all the reparations and maintenance higher cost…I wish I could by one for my daughter (special needs) I was looking for a studio, no luxury, no special amenities…250 000$… 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!
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.
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.
Exactly the same situation and reasoning for me. I live alone and when work is busy it can be 60 hours a week. I have no time to maintain an exterior and a lawn (with said executive dysfunction, it's a miracle when I keep the inside clean)
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.
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 think you are being way too negative about condo ownership. We started out at $189/month and now it's @ $300/month but that includes property management, property insurance, trash pickup, landscaping, outside lighting, snow removal, a few years ago we had to replace the roof, my assessment for that was $3.600 try to pay for your own roof replacement see how much it costs. So, try to pay for all that out of your own pocket, l will bet you won't be a happy camper either. It's sad to see UA-camrs peddling such negativity, get a life you sc@mmers.
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.
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.
They all suck!!!
boat: Bust Out Another Thousand
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.
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?
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"?
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.
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.
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
We have lived in our condo since 2007. Our condo fee is only $295, up from $150 when we moved in. The HOA replaced our roof and takes care of snow removal n lawn care. We have a community pool that we use almost daily in summer. We don't have to worry about neighbors not picking up dog poop or hanging inappropriate window drapes or placing old cars n stuff in their driveways. There is give n take, but we feel safe here n like our neighbors.
People like you are the reason videos like this are made. " old cars", "inappropriate window drapes"? Who decides what inappropriate drapes are? Get a iife
You are the Karens that condos were made for!! "inappropriate window drapes", that one really hit it home, that says it all!
@@bettysmith4527 No point in the name calling. She's just saying why a condo has worked well for her. It's always good to hear about the pros and cons.
Bought one 2 years ago. Felt pressured to “get in the market”. And we regret it. Building is from the 60s, and now that market has cooled, we couldn’t sell it without taking a big loss. Oh yeah, and we’ve got 2 babies now so this 2 bedroom condo is feeling tight.
Rent is “throwing money away” they said. Real estate “always goes up” they said.
If there’s a silver lining, it’s that we worked the kinks out with our first major real estate purchase so we’ll feel more informed when it’s hopefully time to get a house. But that’s a stressful lesson.
bought in at market high is never good. it would be an excellent investment, if you can take advantage of the lows.
Never again! Had one for 10 years. HOA fees went up every single year. Sold it when it was a sellers market and paid cash for a single family home. It was like giving my self a raise by dumping those HOA and special assessment fees!!!! ;-) - and to boot the condo was in CA. - which is turning to crap. Not in CA. anymore and that also gave me a raise.
CA is becoming a shi$hole, even for the wealthy
*I'm 50 years old and living in Canada Alberta I'm willing to retire at 55 if things keep going the way I planned bought my first house last week I'm glad I made a productive decision that has changed my financial status forever and can't be more proud that I'm right now*
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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 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.
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.
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!
I really appreciate your response . I am a young lady in her early 30's and I've always been a renter but I am seriously considering my future. I think that a house would absolutely be too much for me as a single woman. I love the convenience of walking to convenience . I'm originally from a small country so I understand living in an actual house with enough space between neighbors and how you still can lack privacy and or peace.
So much better to listen to that bass and noise through shared walls... 🤦♀
@@bettysmith4527 Condo living can have its drawbacks. Shared walls can be problematic - hence the value of a strong HOA, as I mentioned earlier. My mother and my in-laws live in upscale neighborhoods in houses valued between $900- $1million. This hasn't buffered them from noisy, inconsiderate neighbors. My in-laws' house has been broken into a couple of times, so where's the safety? And there's no HOA for them to complain to. We bought our condo for $225K and we have a service we can call 24 hours a day for any disturbances. We have on-site management. If someone parks in our assigned space, we have a dedicated towing company. I know condo living isn't for everyone, but it does have its benefits. For folks like @bloomingorchid721 it could be a more affordable option for a first home. For people like me, it's nice to have someone else deal with maintenance, major repairs (like roof damage), landscaping, snow removal, trash and recycling services, etc. Additionally, many condos offer and maintain certain amenities like saunas, exercise rooms, pools, BBQ areas, etc. that could be prohibitively expensive for a house owner to manage on their own.
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.
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 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
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!
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.
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!
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!
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.
@@deniseatthelake 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.
You are so on point! I owned a condo many years ago for 2 1/2 years. Yes those fees and my neighbors were always upset with the Condo Association Board arguing, they were accused of stealing money. It was a real mess. I sold my unit because I thought this wasn't for me at all too much hassel.
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!
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'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
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.
It's wasted money. It's not like the mortgage where when you sell you get it all back.
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.
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.
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
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!
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!
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 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!
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.
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 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.
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
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 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
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!
It’s funny that you put noise as a con of condos. I LOVE only having to be accosted with the sound of lawnmowers, leaf blowers, trimmers, etc one day a week for a short time when the landscapers are here-and it’s not the weekend! In a subdivision, you have to deal with almost incessant landscaping noises all weekend starting 8am Saturday morning 😩
And all week! My OCD neighbor does his yard 3x a week. And not just the mower. The riding mower. The push mower. The trimmer. The blower. Mind you, these are typical quarter acre residential lots. I can't wait to downsize to a condo. I already own a small apartment-style unit in a condo building with a well-run association that I rent to my kid. I am aware of the pros and cons and have a good idea what to look for in a condo association. And all these people complaining- I doubt most of them have considered running for office or at least attending the meetings.
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
My condo fee is $350 it went up cause the last hoa failed we fired them. But we had $4k in two months. We don't hear neighbors. We really got sound proof walls ceililings and floors. We only hear neighbors through door. My condo was $87k now 4 years later its up $180k If people our Condo sale it sells the next day.
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".
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 just bought one and have no regrets. The HOA is reasonable, $480/month. I have no furnace, no A/C no hot water heater and no water softener. The utilities are $75-100/month and taxes are $200/month. So I am all in for about $800/ month. I also have the option to rent it for $1600-$2000/month. Yes, there are some restrictions, like no dogs, but I don't have one. We owned a 4000 sq. ft home for 18 years and we spent $$$$ for upkeep.
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.
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.
It depends on what the condo fee includes as well whether the amount is reasonable or not.
Really appreciate your videos, Jackie. Thank you
You're so welcome!
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.
Noisy shared walls are reason #1 for many, beyond price. But the HOA rules can also evict bad eggs.
When I got my condo years ago, (25years) the HOA fees were not sufficient for upkeep. We had no reserves. The managment company suggested raising the fees. My fees went up about $110 a month. We also had an $5000 special assessment to have vinyl siding put on all the buildings. Though it stung a bit, it turned out to be a great investment for the community. Unit prices have been increasing and the HOA can afford to do repairs without the need for special assessments. Units have been selling quickly, some have sold in a little as a day. I live in Oklahoma City which has been growing for some years now, and have seen the price of my unit increase in value year after year. I've been watching a lot of your videos and I have to say that a good video for new home buyers would be to learn how to do small repairs themselves. There are many videos on UA-cam that can help with this. This can save them some $$$.
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
I worked security at a huge condominium complex. There were no short term rentals at the time. People were constantly calling me and complaining about their neighbors for the pettiest things. Noise complaint after noise complaint when I couldn't hear any noise. Complaining about a shirt on a hanger hanging on a chair on the balcony which was not visible because the big outdoor chair was blocking it some how the neighbor saw it and complained. My experience there made me never want to buy a 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 !!!
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.
Aluminum foil 200ft by 12 inch roll - 16 bucks at Albertsons
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! ..
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.
Top floor isn't necessarily best... I'm a plumber in NYC, most of.my work is in penthouse units. Leaks from the storm drain piping, mechanical piping, roof seal, etc.
Great point
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.
This is what can happen with condos: A construction company either does work for the association and takes ownership of some condos as payment or buys a few condos when the price is low. Each condo is a vote and soon someone from the construction company is on the board. He makes sure all he bids for repaving the parking areas to snow removal, all come in too high (from his friends who have their own construction business) but his company will do it ‘cheaper’…which is the regular rate, but not surprisingly his company gets every bid. Then he makes sure all the upkeep and repair bids come in too high so the board puts off repairs and the community areas start looking shoddy. Values go down and people complain but this construction company controls the board, so nothing is done. Soon people start getting rid of their condos causing the value to drop further. Then the construction company swoops in and buys up blocks of condos and now the board can then vote to go private ownership or decide that all the condos will be rentals - and not be a condominium anymore. In Wallingford CT, a company slowly gained control of 80% of the units at Parker Place Condominiums and told homeowners they all had to sell out even if they fully owned their condo because the entire complex was being turned into rental units. This happened not only in Connecticut, but New York, Florida and out west too. Going to the State Atty General or banding together to get a lawyer did no good. Owners had to sell their condos at a loss to the controlling company and move out. Following this, a local construction company and my condo’s Board of Directors in my town tried to do the exact same thing - but we caught them early and have been fighting against their takeover. It’s exhausting, frightening and can happen anywhere. Don’t buy a condo!
Thanks for the advice.. Now I know better than to buy a "kaahndo"
Love your channel!
I hope you'll be able to expand your commentary on condos, especially since a condo is defined by having at least one side shared with another unit.
I currently live in a condo community where each unit looks like a townhome. The floor of my dining room is the ceiling of my neighbor's garage. And THAT'S what makes my unit a condo!
It doesn't hurt that the price of my condo has increased almost 4 times its purchase price in 23 years.
And sure, I'm spending over $400 in condo AND HOA fees, but it's worth it for me to have my own garage and driveway with almost 2k square footage. Shared fees mean our streets are paved, our roofs are replaced, our trash is collected and our pools/playgrounds/tennis courts are maintained.
Think about this. Food, electricity and gasoline have increased almost 4 times in 23 years, as well. Your property didn't increase 4x in value. Your dollar decreased 4x in value.
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.
Such good advise! Been there done that but it's always good to be reminded 🤷♀ I'd rather live in a tiny house 🏡
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.
Hi love your videos.
I got a problem. I live in Ocean County, NJ for over 26+ yrs. We Love it here. I'm on the lagoon. Boaters Paradise .
But one big problem 😭 My neighbor's decided to run a "3d Printing Busines out of his 🏡". He makes trophies 🏆 he's using Toxic Chemicals with VOC's volatile organic chemicals when melting the resin and plastics.
He runs it all night and day he's a school teacher and has people coming over in different shifts to run this printer, he has a ventilator pushing the air outside his home right to us and our & our neighbors air soace
The smell from burning plastic smells horrible its melted resin polymer creating micro plastics in the air its irritating and is causes breathing problems.
You really can't sit outside with this.
I just found out that the toxicity from this resin is a carcinogenic.
People get throat problems skin irritation eyes kidney and liver etc
I called EPA I called the Zoning, Board and the Health Dept.
They told me that you would have to tell them your name but would keep it secret BUT...if this ever went to court they could dig up my name.
So we are concerned if we spoke up that he would retaliate and we could have more problems.
Also we could be messing up his business even though hes running it in a residential area this is his 💰💰💰 money.
I do love my home and im not sure what to do? But I do know this is very damaging to aquatic life we also have beautiful Swan 🦢 duck's and 🐇🐰 and bird's that will be effected.
The people are crazy here this is a very sort out neighborhood in Silverton and we are concerned for our health too.
Im woundering if I can contact his home owners Insurance and let them know about the volatile fumes that could be combistional that he is creating and see were to go from there.
Any comments would help. You never know who your neighbors are 😮
Thank God he doesn't raise snake's
Even alot of new house developments have HOA fees now.
My house development does.
great video. agree. you need a follow up video - Exception to NEVER Buy a Condo video. New project. Investment. No carrying costs. depends on the market of course.
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
Everything you are saying here in your broadcast is very, very true!
Live in a condo community on Long Island, NY and the HOA fees are high!
There are communities that are charging from $400 to $595 per month.
It definitely isn't worth it!
Best to have your own home and land and pay the property taxes!
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.💰💰💰💰🔥🐀
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.)
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.
@@evabon3255 So you didn't like renting the bedroom?
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.
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
Like every type of home, condos have pros and cons. Living in a three family unit, I enjoy the sense of community, value for money, location, and safety (we rarely all go away at the same time).
condos are a step between rentals and home ownership. Yes there are bad things about them as Jackie points out. But to make a blanket statement of "Never buy a condo" is just her hype to trigger views. Everything she says that is bad about a condo CAN happen in owning your own home. You could have a home in an HOA controlled neighborhood and have all of those same issues. Your home could have a back porch where you can hear the neighbors yelling at each other or their phone calls from their porch. You can have unforeseen high expense repairs pop up (similar to a new special assessment from an HOA). You could end up in a home and the neighbor's kid just started a rock band in their garage. Just like anything - you need to do your due diligence and understand the risks & rewards of your plan. Staying in a rental could be financially worse than a condo but it could also be better depending on your market, your financial situation and your short and long term plan. Home ownership could be riskier than a condo depending on those same questions and situations. There is clearly a market for condos, do not let Jackie's negativity stop you from making your own choice, but you need to understand what you are trying to do and what you are willing to accept.
I agree.
Very good report, Jackie! Couldn't agree more.
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.
As someone who lives in Scotland, your American housing system is super weird and I'm sad for you. Obviously it's not a utopia, but the housing model from our 1890s tenements is great. Sure, they're apartments, but high ceilings, big windows, thick walls, spacious rooms, and the whole American (and I feel English) obsession with privacy is just sad - I keep a garden on my street and chat to all my neighbours and their doggos as they go by. We can just own our flats and get a management company - if they suck, we can fire them, or just do it ourselves. Plus the density from not being in sprawly single-family homes means our cities are walkable, and I have a huge park within view. Frankly our biggest fear in my neighbourhood is that people find out about it and Southern types move in with their money and ruin it for all of us :D
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.
Agree completely. Had a condo in Myrtle Beach. The monthly HOA fee was nearly as much as the mortgage payment! It was insane. And, of course, the HOA fee kept increasing year over year. And, on top of that, we go hit up every few years with an “assessment fee” that would be so high- the payment was financed over several years- meaning every month, an additional payment was due for the assessment fee. The overall cost of the condo was completely insane. We sold the condo and took a loss. It was painful to come up with the large amount of cash that we had to pay at settlement just to get rid of it. Will never ever buy a condo again!
Love this!! Would also love your input on CO-OPs!!
I will definitely look into doing that.
I have a condo on Hawaii Island and we only pay $540 a month HOA fees. The resale here is good. We bought at $410K three years ago. My real estate agent told me she would sell it at $580K today. We have a nice backyard because we are on the bottom floor. We are also on the 18th hole of a golf course with views of the large pond, the Kohala Mountain range and we have Mt Mauna Kea looming over us. (It’s dormant) They are super laid back here and I have remodeled the condo. All they did was ask two questions and it was approved. We are on the bottom floor and have lucked out to have quiet neighbors. Mostly seniors here. No short term rentals. For us it was a good move for our senior years. Three pools, two hot tubs, lawn care, painting, roof, water, even the porch light is taken care of!
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.
I remind SFH buyers that it’s wise to keep a separate home maintenance account/portfolio, and pay into it as if it were a HOA fee. Many of the problems with mismanagement of a condominium can occur when a house is mismanaged. A strong association can be better than an individual homeowner in the aggregate.