Which is better:
The freedom of a condo? Or the land value of a house? You’ve found the area where you want to live. You have your financing arranged. But, you are stuck.
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This week and next I’ll be sharing some ideas to help you sort it all out by comparing the pro’s and con’s of each option. Today, I’m going to focus on the bonus features of a detached, residential house. (If you’re leaving toward a condo, you’ll want to read this, though, as you’ll get advice, too, since I’ll be comparing the two options.)
1. The land Will Never Go Away
90% of all millionaires become so through owning real estate.”
~ Andrew Carnegie
Let’s face it. Buildings fall down.
But unless you live on an island in the Mississippi, your land will probably not go away.
This is a drawback for condominiums. Although many are built to last, some have been thrown up so quickly in recent years, they may not last 30 years.
Ask yourself this question:
Which is more important to me at this time in my life: being free from yard and home maintenance or buying something that I will have 20 years from now?”
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2. No Shared Walls
In a condo development, you may hear your neighbors. If you are the kind of person who does not like to see the same neighbors almost every day in close proximity, you may consider a house.
You can build a privacy wall or grow bushes around your home. Your back yard can be a fantastic get-away.
Ask yourself this question:
Do I enjoy the sense of community that I can have by sharing a common living area. Or, do I prefer more space that I can call just my own?”
How much more are you willing to pay for that luxury?
3. Greater Flexibility to Improve and Remodel
Most condominiums, if built with block construction, give you some flexibility to re-arrange inside. You may be able to remove some walls and expand rooms.
However, once you start talking about windows, balconies, and patios, the restrictions begin to pile on.
If you have a house, you can go crazy repainting, adding features, and personalizing your home.
However, you must still adhere to city code for things like wall height and that massive Trojan Horse water slide you are planning to build in the back yard.
Get to know and love these two links:
City of Phoenix Historic Preservation
City of Phoenix Residential Building Permits
4. Your Property Value is Tied to the Success of Neighbors
In a condominium, all owners pay into a fund that maintains the common property, including landscaping and insurance for things that owners share, such as walls and a roof.
In a house, you don’t have to pay these monthly assessments. But, then again, you have very little power over your neighbor, who has decided to park a massive pink RV between your two homes.
Or, if your neighbors don’t take crime prevention seriously, will your neighborhood likely improve or decline?
Ask yourself this question:
Am I willing to spend the time volunteering with the neighborhood association in order to protect my property value?”
Hint: You will want to ask a similar question for condos.
5. Keeping Up Appearances
People often talk about keeping up appearances in the negative, as if it is all about superficiality.
But in a neighborhood, keeping the street looking good has a very direct impact on your property value.
If you are inclined toward a condominium because you don’t have to mow the lawn, consider this:
- The Average HOA Assessment = $200/month
- Average gardener = $100/month
6. Other Things to Consider with Houses
Growth potential tends to be higher.
Condo boards politics can be tricky.
Houses are more adaptable for growing a family.
Always meet the neighbors before you buy, as part of your inspection period.
Kenneth “Ken” Clark
REALTOR(r)
At Your Service!
HomeSmart
(602) 561-5881
Ken@GetYourPHX.com
Why is that, you ask?
For one, the foreclosures and short sales are gone. That alone will keep things competitive, especially in the central corridor and historic neighborhoods.
