Buying a Condo: Pros and Cons

The Pros and Cons of owning and living in a condo should be considered carefully.

By Ken Urman, Realtor

When you make the decision to buy a new home, you will make many choices and decisions. One of the first choices you must make is whether to buy a single-family home or a condominium. Each

option has clear – and less clear – pros and cons. For most people, the differences between living in a single-family home and living in a condominium are significant. When considering buying a condo, evaluating the pros and cons is very important.

Let’s face it: the perfect home for your best friend might not be the perfect home for you. To help you make that choice, here are the most commonly discussed pros and cons of buying a condo.

The Pros of Buying a Condo

Buying a condo is like living in an apartment that you own, right? No annual rent increases, on-site maintenance, and an exterior you don’t need to maintain. Maybe.

1.       Maintenance. Having other people who take care of all maintenance issues is a big benefit of living in a condominium. The knowledge that you don’t have to do maintenance tasks is a huge plus for people with limiting health conditions, people who are very busy with work, those who travel frequently, and first-time homeowners. What is more, you do not have to worry about maintaining the landscaping. Having few, if any, maintenance tasks to perform also means you do not have to invest in all of the equipment necessary to maintain a property.

2.       Amenities. There is no question that condos offer great amenities. You have access to the pool, a fitness center, community activities, and (often) a community clubhouse that is available to you when you want to entertain. Many of these amenities can be a bit too pricey for a number of average homeowners. In addition, these amenities are available to condo owners without obligation to maintain the facilities or plan the activities.

3.       Security. Most condominiums are in buildings with locked entries or in gated communities. Many condos also provide either a doorman or a professional security guard. When you live alone or your physical condition makes you feel “vulnerable,” the added security is important. In addition, there are many people nearby that you could call upon in the event of an emergency.

4.       Affordability. Condominiums typically carry lower price tags than single-family homes. They, thus, offer a solid initial step into owning your own home.

5.       Elevators. Many condos are in buildings with elevators. There is no need to carry groceries up steps. If stairs present a physical challenge for you, life in a condo solves the problem.

6.       Lower Utility Bills. Living in a condo (rather than a single-family home) often incurs lower utility costs because the space is smaller and because many accessibility features and amenities are powered by community utilities.

7.       Urban Living Option. Many people are again choosing urban living. They can walk where they want to go or use public transportation. Good restaurants and great shopping are close.

8.       Predictable monthly maintenance or condo fees. Most homeowners do not have the same level of predictability in their budget.

9.       Lifestyle orientation. Some condo communities are geared to a particular lifestyle. A particular community might be geared to the singles lifestyle or to a retirement lifestyle. This typically means that the community offers activities and amenities desirable to those who have chosen that lifestyle.

These are wonderful arguments for buying a condo. However, like most things, there are some issues associated with condo ownership. It is important to understand the cons, as well as the pros before you buy.

The Cons of Buying a Condo

The very things that make condo living attractive to some people can be unattractive to others. Some of the most frequently mentioned “cons” of condo ownership follow.

1.       Special Assessments. Some condominiums are “underfunded.” This means that they do not have sufficient reserve funds for capital improvements and repairs (new roof, painting, or concrete repairs). When a critical need arises and the reserve is insufficient, condo managers sometimes find it necessary to impose a special assessment upon condo owners. This can be both costly and inconvenient for your budget.

2.       Condo Fees. The security staff, maintenance costs, pool maintenance and fitness center equipment are paid with funds collected from condo owners in monthly condo fees. Depending upon the size of the community, the level of luxury provided, etc., monthly condo fees can range from $100 to $1,000 or more. Not only should you know what the monthly fees are at the time of purchase, you should also know the rate at which fees typically increase from year to year.

3.       Non-resident Owners. A number of condo owners do not live in their condos. Instead they rent their condos. Some condo associations have rules that govern whether you can rent or how many units can be rentals at one time.

4.       You do not control the maintenance and repairs schedule.

5.       You might be compelled to pay for amenities you will never use.

6.       You must abide by community rules.  Some condominium units are noisier than others; some units offer less privacy than you might like. Possible restrictions may be in effect on noise, parking, pets, smoking, window coverings, and other details.

7.       The Homeowners Association. Many single-family home communities also have a homeowners association. These groups represent all condo owners in a community and are authorized to make decisions that affect everyone. Many of these requirements will be innocuous, some may be irritating. If you can accept most things, you are less likely to be bothered by the association or their rules.

8.       Less space in many units. Many condos are somewhat smaller than single-family homes. Without a yard, they also typically offer very limited opportunity to make your surroundings your own.

9.       Condos offer less privacy than single-family homes. Owning your condo does not preclude you being bothered by noise from surrounding units. You may also assume that if you can hear your neighbors, they can also hear you.

There are pros and cons of buying a condo. There are also pros and cons of buying a single-family home. People have different needs, lifestyles, and expectations.  The choice between a single-family home and a condominium home might be one you are prepared to make. 

If you would like to discuss the choice with an objective outsider, please call me. I have helped many potential buyers make this difficult decision. I can also help you place your decision within the context of the current market in our area.