What are you searching for? A house or Condo. There are advantages and obstacles to both condos and Houses. To help you decide what’s best for you, we’ve assembled profiles of the ‘usual’ happy condo and happy house owner. Although the illustrations we put together are derived on an average, we hope they will help you figure on the option best for you.
Hari wants a apartment.
Hari left his parents and leased an apartment. He is a professional who is always on the go. Hari has a mix of friends, some who rent apartments, some who have partners and some who own houses. Suddenly, Hari’s bachelor pad feels a little cramped and sterile (as his mother always points out). He used to be cool with it, but now he’d like to spread his wings a little bit – get a bit more room to invite friends, and have the option of really decorating and getting some better furniture. Hari is looking for somewhere that is more pivotal for his needs as he works drawn out hours and doesn’t want to be driving miles just to go to the shops. Hari’s pursuits do not need a lot of room, so room is not something that he needs. He also doesn’t like the idea of the upkeep and money necessary to maintain masses of room. Closet space and a big flat wall for a TV is Hari’s requests. He enjoys clean lines and new accessories. He doesn’t have temperament to shovel snow or the desire to grow roses. He wants a apartment that has all inclusive services so if something goes wrong its fixed and at no extra charge. Hari fine to keep to himself so he doesn’t need lots of neighbours dropping round. He accepts that noise now and again is part of life. High security with constant 24/7 security guards is a must. A pool and gym would be an added godsend especially if they are covered in the cost as Hari likes to keep fit. It will also save on gym fees. Access to a parking space will assist with the resale price even if Hari does not buy a car. This is probably not going to be his last move, so resale is imperative. The future has not happened yet, so who knows how the situation will change. Condo life is the obvious conclusion for a person at this stage in their lives.
Susie wants a house.
Susie is not able to imagine living without having some personal space. When she was in college, she had enough of communal living and now she doesn’t miss having only thin walls between her and her neighbours at all. Susie just wants to have her privacy and enough space, and she doesn’t mind having to spend some more time for travelling to work. Also shopping has to be done weekly, but it is no problem for her to take her SUV to the supermarket and load it up. Nothing means more to Susie than her two children, and she wants them to be able to play around the yard like she did when she was a kid. Susie and her family also live in a neighbourhood where they know the other families nearby which is really useful, since there is always someone at hand to give advice about the best babysitters, school sports or the new off-leash park. And also it’s possible that Susie and her husband Stuart may have one more child in the future (although they haven’t really planned it yet), or possibly Stuart’s mother might need some help later and would move in with them. Therefore they for sure need enough room for the family to expand. Stuart likes to work on his vintage car in the garage and their daughter Jenny is already into playing the drums, which she wouldn’t be able to do in a flat – it gets loud enough in the basement as it is, so Susie’s planning to have it soundproofed and build in a bathroom to make a perfect teen retreat. On weekends, Susie loves to tool around in her garden, which is really her pride and joy – there’s nothing like picking fresh vegetables for a salad while Stuart fires up the grill. For Susie and Stuart, it’s also very important that they are owners of the land they live on. If it happens that the roof begins to leak, as last year after the storms, it’s still their own roof and they have money aside for such cases. Any house just needs some occasional reparations, that goes without doubts. For Susie and Stuart, the responsibility for all the upkeeping work is not a problem. They have divided the work up and they each have their own chores – Susie cuts the grass, while Stuart takes out the recycling. As far as security is concerned, Susie believes that their new system will keep the burglars out of their home. And also there is a residents’ association that keeps an eye on what’s going on in the neighbourhood. She is just satisfied in their secure neighbourhood and wants to stay there long-time and put down roots.
Final advice
So now which one of our two examples felt closer to you – Hari or Susie? Some people may feel neither of our examples is close to their own situation – these may be the ones who would enjoy living in a condo town house, which has many advantages of both condos and homes.
If you decided that a apartment could be a better fit, never let the monthly apartment fees, combined with property taxes, mortgage and insurance, exceed 30% of your monthly income. Find our whether building damages are covered in your fees or whether you have to make extra or one off payments. The Homeowners Association (HOA) or a real estate lawyer can proof read into your contract for you. What is made available in your fees? If there are extra amenities included do you really need them? Look on the internet or ask around to find out an approximated cost for any additional bills you will have to pay such as gas and electric. Also check the contract to find out if the building is pet friendly. You may not have a pet now, but you may want one in the years ahead. If your condo has many of windows there could be significant heat loss so your expenses could rocket if heating is not included.
If you decide to go for a house, our recommendation is that you shouldn’t pay more than 25 per cent of your monthly income for the mortgage plus the property taxes. In any way, you will have to pay all for all the upkeeping needed at the house. First try to estimate the necessary upkeeping costs and also to what extent you are able to manage the repairs needed, as all the responsibility (from a leaky faucet to a flooded basement) will be just upon you. Think about the financial and physical cost of transportation, which is likely to grow if you will be moving to a suburb. Make sure that you examine a recent home inspection to prevent any surprise problems with the home’s mechanical systems, from wreaking havoc with your budget. For example, a fixer-upper with an ancient furnace, old wiring and insufficient insulation will demand a more or less immediate cash infusion just to make the house liveable.
