The Pros and Cons of Buying a Condo vs a Single-Family Home

Purchasing a condo is usually a great affordable way for a person to buy into a specific neighborhood. For example, here in Miami you can buy a condo for $200-250k in a neighborhood where houses go for $500,000 or more. You are able to get into a different neighborhood than you could not otherwise afford. Most of the time, the condo versus house comparison is an affordability issue not a choice of lifestyle as the driver.

Condo versus single family home however, if it weren’t for money or opportunity, the next primary focus would be about lifestyle.

Who is likely to prefer a condo: Someone who doesn’t want the cost of repairs maintenance or the time of doing them will usually chose a condo. We have clients who say that they are barely ever home and so the simplicity of condo lifestyle along with pool rec room activities are why they want the condo as opposed to the house.

Who is likely to prefer a house: Some people love the idea of fixing up a house, also the idea of a yard for pets or kids or both plays a big factor. Anyone who is considering the option of being able to add an addition later on to make the house bigger and more valuable. Ideally for someone that would want to decorate the outside anyway they want reflecting their personality and taste. Having a driveway or garage all to their own (which you may not have in a condo) is another perk. Houses need to be maintained and have expenses like replacing the roof, water heater, grass or painting the outside every few years. Etc.

From an investment standpoint:

Houses go up in value faster than condos because of supply and demand. They maintain their values in downturns better than condos as well. One disadvantage of buying a condo is because you are not in control of the finances. You are buying into a business that may have management problems, financial problems or people problems.

Management problems: Condos usually have an outside HOA that manages hiring the repair people, collects payments, pays the bills etc. if they are not organized, or don’t respond to requests, then the quality, cleanliness, and safety of the building can be affected which then affects the value of your property. In other words, you are all in it together.

Financial: You are now in a club where you and maybe 50, 100 or 500 people are contributing to the financial wellness of the community (like a company) you live in. It also happens that HOAs don’t have enough cash reserves so they then go to all the owners, by way of a vote, and ask for a special assessment. For instance, if there’s not enough money for a new roof then they will need everyone to cough up the $100,000. So if you are 100 owners you all contribute $1000 but what if it’s a major repair and you only have 50 owners. We have seen cases where the members decide to renovate the entire building, because it was built in the 1970s and charge each owner $75,000 making it mpossible for some to keep their condo.

All in all the pros and cons of buying a condo vs a single-family home can vary depending on the specific property and the buyer's needs and preferences. Here are some of the main differences that include:

Pros of buying a condo:

• Lower cost: Condos are often less expensive than single-family homes in the same area.

• Less maintenance: Condos typically have a homeowner's association (HOA) that takes care of building and property maintenance, allowing owners to enjoy more free time.

• Amenities: Many condos offer access to amenities such as a pool, gym, or security, which can be a major draw for some buyers.

Cons of buying a condo:

• Limited privacy: Condos are often attached to other units and share walls, which can be a drawback for some buyers.

• Potential for noise: Living in close proximity to neighbors can also mean dealing with more noise.

• HOA rules and fees: Monthly association fees can add to the overall cost of ownership, and some HOAs have strict rules and restrictions on renovations, modifications, or changes to the unit.

Pros of buying a single-family home:

• More privacy: Single-family homes are detached from other units and often offer more privacy.

• Greater control: Buyers have more control over the property, including the ability to make changes as desired.

• No HOA fees: There are no monthly association fees to pay when you own a single-family home.

Cons of buying a single-family home:

• Higher cost: Single-family homes are often more expensive than condos in the same area.

• More maintenance: The homeowner is responsible for taking care of the entire property, which can take up more time and money.

• No amenities: Single-family homes typically do not offer access to amenities such as a pool or gym.

Wether its your first time buying real estate or your tenth property in your portfolio, it is always great to consider all options and go to a trusted real estate professional for any home financing needs.