SDblog

Hi Everyone - we had to deactivate the blog from our site for a while.  I don't know how, but somehow comments regarding a certain drug for, shall we say, "male enhancement" were spamming us and so the site host recommended we deactivate for a while.  They are working on some measures to stop that, so we shall see.

So we will be posting again as often as possible.

THanks! Jan Farley

This is a question I hear in many forms often.  It can be worded, "is it better to buy a house or a condo" or lots of other ways as well.  The answer to this question depends on each individual buyer's needs and desires.

Its not always better to buy a house.  If you are a person who doesn't have a lot of handyman skills, or time, a house might be a big headache for you.  Here are the major differences between buying a house and a condo:

1.  With a house, you own the land and any and all buildings on the land.  You have complete responsibility for the expense of all upkeep on the buildings and keeping the land "sightly" and free of fire-endangering growth and debris.  So if you spring a leak in the roof, you have to pay to fix it.  If an errant baseball comes through your window, you (with perhaps help from homeowners insurance) have to pay to have it replaced.  If your house needs exterior paint, that is your gig as well.

With a condo, essentially you own the interior "air space" and have responsibility for the maintenance and upkeep of the interior of your unit.  So if you want new cabinets, you pay for it.  You want to change the color of your living room, you pay for it.  But if there is exterior damage or maintenance, or the roof needs replacing, the homeowner's association pays the bill.  The homeowners association owns the entirety of the LAND and really to a major extent, the exterior of your unit.  So you give up the right to make changes to the outside without HOA permission, but you also give up the right to make major exterior repairs out of pocket. 

2.  Insurance is another major difference.  With a house, you shop for and pay for homeowner's insurance that covers the interior, exterior, contents, and liabilities such as someone slipping and falling on your property.  You have the right to choose the company you like best, and the coverage/premium that meets your needs.  If you don't keep your insurance paid current, your mortgage holder can order "forced placed" insurance to protect their investment in your home in case of fire - this is very very expensive.  You can control this cost to some extent by choosing a larger or smaller deductible.

With a condo, there is a master insurance policy covering the exterior of the units, liability, fidelity bonds for the HOA officers and board members, etc.  A portion of this cost is passed on to the home owner in the monthly HOA fee.  You should get your own contents insurance, because this master insurance doesn't cover your beloved possessions.   You don't have to worry about making the monthly payments to the insurance company, this is done for you.

3.  Monthly expenses are another issue to consider.  Typically the monthly HOA fee will include not only insurance, but will also cover a range of the following: water, hot water, sewer, trash pickup, cable TV, gas, electricity, fitness facilities, tennis courts, pool/spa maintenance, and grounds maintenance.  With a house, you are responsible to pay ALL OF THE ABOVE, and these can add up. 

I hear people "railing" about the expense of the HOA fee all the time, but by the time you add up all the things you pay monthly when you own a house, you might actually be ahead with the HOA fee!

In summary, if you don't have the time or talent to do repairs, don't want to hassle with insurance and other monthly bills, don't want to do yard upkeep, and don't mind giving up a small level of your privacy in exchange for added security, a condo may be the best bet for you.  If you are fiercely individualistic and love to work in the garden and tinker around in the garage, then a house is probably best for you.

Jan Farley