I have to admit from the start that I live in a condo and I have been in and out of a good number of condos in the last few weeks. I like condos and a lot of my clients like condos. It is convenient to own a condo. There is no lawn to mow, roof to take care of, gutters to clean, leaves to pick up in the fall, a driveway to shovel in the winter, or a house to paint. There is a lot of upkeep that comes with owning a home and condo owners only have to do the inside half of it.
There is a downside to all of this or a payoff if you want to think of it that way. All the benefits of owning a condo come with a price and that is normally somewhere between $200-$450 a month. Monthly condo fees are the dues people pay every month in order to not have to worry about a lot of the maintenance that comes with home ownership.
The reason this is important is every decision in a home buying scenario is a cost to value ratio. If not having to worry about taking care of a yard or cleaning gutters is of a value to you then condo ownership might be what you desire, but if you are someone looking for an affordable home and wouldn't mind those things then keeping these extra monthly fees in mind is a must.
A general rule of thumb is that for every $100 in condo fees that is $10,000 that could have been added to your loan. As with all rules of thumb and financial advice it is best to consult a lender for a more accurate answer but this does give some idea of how condo fees can effect you and your home buying search.
There are benefits to condos outside of their typically lower price and ease of maintenance. In areas like Ballston, Crystal City, and Rosslyn people may want a condo because they enjoy the walk ability of the area as well as the benefits of city living. In those areas the downside of the condo fees can be mitigated by the ease of public transportation those removing the need for a car payment.
Another great benefit to condo living is that when it is time to move up to a larger home a person can hold onto their condo as investment property. The increase in rent in this area is disproportional to the monthly payments someone can get on a mortgage. With record low interest rates locking in a mortgage at today's rates for a condo in a desirable neighborhood could lead to an additional income source when the time comes to move on.
There are downsides and benefits to every decision in life and buying a home is no different. There are good reasons to own a condo and good reasons to not want to purchase one. It is important during your home buying search to keep track of your own cost to value ratio. Keep in mind the condo fees when looking at what they could mean to your purchasing power as well as all the benefits of condo style ownership.
As always if anything you read here today is of interest to you and you would like more information then please contact me through www.SuperNoVaRealty.com.
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