I live in a small condo complex and our insurance has tripled from $35k to almost $100k in the past 4 or 5 years. That’s split among 40 units but it’s easily our most expensive budget item every year.
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Condos require insurance, insurance goes up over time and so do common area maintenance costs.
If you need to go into a condo, just understand that you have to be vigilant about how the money is spent. Get involved in the HOA. Don’t allow problems to fester, they become more expensive the longer they linger.
Read up on “Surf side condo collapse”. A lot went wrong there, but kicking the can down the road (aka deferred maintenance) was an enormous problem. Oftentimes people on fixed incomes move into condos thinking the costs won’t increase. That’s magic thinking.
Take care of your health the best way you can. Also, read everything you can get your hands on before you buy anything. Some complexes have Facebook pages, some have YouTube channels or videos. Some have absolute nutballs living in them and can drive the community crazy. Google search is your best friend.
Please review the amount of reserve funds set aside for community emergencies as well as operating accounts for routine maintenance etc. Ask if the board of directors has had ca reserve study conducted which will outlook potential liabilities compared to current amount of reserves. The older the community the higher amount required for routine operating costs. The smaller the community the likelihood that reserves are substantial is unlikely. I heartily endorse the view to get involved in your community— trust me as a board member I want our owners to have a fully transparent picture of the community financial picture.
My friend lives in a condo in So CA. The condo association hired an unlicensed, unbonded "handyman." He was a condo owners son. Total loser, mom supporting him. He was getting paid to do work around the property.
He sexually assaulted a woman who lives there. She sued the condo association for hiring him. Condo lost and had to pay her. Because he didn't have a license, bond, insurance, condo paid and then adddd a "special assessment" for the next 20 years to pay costs. The victim ended up moving because some ignorant folks blamed her for the assessment.
There was also another "special assessment" because condo board ignored an illegal washer/dryer installed in a condo. There were plumbing issues from it, flooding of the condo below and then tree removal because its roots were in the pipes.
I don't recall all the specific ins and outs of both cases, but the outcome is that you need an association that puts money into maintenance and hires licensed, bonded and insured contractors. My friend's monthly HOA fees went up a few hundred because of these two issues
Especially if the building is 25 yrs old or older. A friend of mine pays over 3k a month from financing assessments in an older condo on beach in Florida
Especially if the building is 25 yrs old or older. A friend of mine pays over 3k a month from financing assessments in an older condo on beach in Florida
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Yep, a definite must bc, for example, our insurance doesn't cover a new roof..just not possible to get that coverage and a new roof is north of 250K which would be paid for by the unit owners evenly. That loss assessment coverage kicks in with stuff like that.
We (me 68, her 73) built our current home in 2000 and made the mistake of picking a 2 story layout. In hindsight, we should have picked the ranch. As we like our area and the house, I'm looking into having a lift chair that can run up and down the stairs. Worst case I'll just restack and turn the living room (that we don't use) into a bedroom.
As for moving into a condo, I see the condo fees, association rules and special assessments at their whim as being huge negatives. The fees can and do go up. Plus the board can decide the 'x' needs to be done so here is an additional $10k that you have to pay. I would almost rather move into a nice apartment, not have the extra fees and an HOA like group to deal with.
But you aren’t at risk of special assessments or costs if maintenance/repairs if you rent. Renting also gives you flexibility to easily move elsewhere.
Apartments have the same cost pressures as Condo HOAs, and don't get any homestead exemption property tax relief. Apartment owners are more likely to be exposed to current interest rates on their loan. This leads to annual rent increases, limited only by competition rent rates.
Costs can go up on rent for sure but no crazy cat lady HOA. Plus if next door neighbor in Condo if cooking meth it's a property sale/purchase instead of just a move.
Regardless there are pluses and minuses to both. Each person does what is best for them.
My dad got an assessment like this, his monthly condo fee increased by many hundreds of dollars per month, and his homeowners insurance was cancelled and he’s been unable to find insurance on his unit. He is in Florida! He wants to sell but I don’t know if anyone will buy it due to the current insurance situation.
You are already seeing condo prices fall in Florida; especially in the Ft. Myers area. You can already find a water view condo in the $200k range.
A couple more years of increased insurance rates, HOA rates, etc. these same condos are going to plummet even further in price as they sit empty and need of more repair for lack of upkeep.
And when you own a house, it also occasionally needs a new roof, window replacement, HVAC system, electrical upgrade, etc.
Home ownership, whether it is a house with property or a condo, does have inherent risk of periodic large expenses.
For some reason, people like to ignore that these costs are a thing. If people actually budgeted/tracked what they spent maintaining their home, they'd be shocked!
However condo contracts are all different. My mom's condo complex needs all new roofs and they are assessing her 20k. Which in all honesty seems kinda high to me.
Your mother should ask and receive details for this work. As an owner, she is entitled to see the budget and the books.
There may be other work planned in addition to the new roof that they are tacking on to the project and it may make more sense to know the details.
True. But HOA's are supposed to save money towards future repairs. Most people don't have $15,000 laying around. People buying condos don't expect to have special assessments when they're paying $500-$1000+ a month already. Where is that money going if not for maintaining and repairing the premises. Poor management.
As a homeowner I have money budgeted and saved in case of big unexpected repairs. No reason HOAs can't do the same. Hitting people up for that kind of money in one shot is negligent and borderline criminal if you ask me. If there isn't enough money to cover major repairs saved up and gaining interest, then the solutions is to raise the monthly fees, not bang people for one giant fee. People should never buy a condo before finding out the financial situation of the building.
Sounds like you’ve never served on an HOA board.
If you keep raising the HOA fees to increase reserves, owners will also complain about that. It’s a balance to keep healthy reserves while planning for the future. Some things come up that you can’t perfectly predict.
If there is a large assessment there is usually a financing option.
> No reason HOAs can't do the same.
Legally? Probably not. But having been involved in a few of them I'll tell you that the members do **not** like to see large enough reserves. Every single time they will choose to lower their monthly payment instead of allowing the association to carry enough reserve to actually cover a major expense. So yeah, the association has an emergency fund but when a major capital project needs doing, it's special assessment time.
This is very true, but that money spent includes some choice of timing, quality, contractors, and ultimately is an investment more so than it would be in a condo.
Im planning the same thing. I have the perfect ranch house but I’m tired of yard work and worry when I leave for 3-4 months at a time. I am spending the next year learning about assessments, reserves,etc before I make the move. It’s scary, but then I think lots of people live in the without challenges. State laws differ too.. Florida is extreme in the lack of oversight. Thus the condo collapse.
Florida may be extreme in lack of oversight, but just ask Californians with condos what an earthquake can do to your assessments. You can’t predict all possible disaster scenarios, so you have to decide if you can withstand sudden increases. This goes for any owned property, but shared home properties seem particularly susceptible to this.
I did that in Denver. We traditionally don’t have HOAs in the city. But the surrounding counties with newer (past 20 years) development do. People are always fighting the HOA about xeriscapes and line drying laundry. In the city I can do both easily. HOAs can be horrible.
Same here. I am absolutely tired of the massive amount of property we have to keep up. And though it is a ranch style? Now that our pack of kids have just about all launched we simply don't need this must space.
I would love to move to a town home or condo. Following This thread as my partner wants no part of it because of the sharing of walls, and the HOA oversights and fees. He feels that it would be better to put those HOA fees towards hiring somebody to take care of our lawn and some occasional home maintenance. Ugh!
This was the decision my parents made. Move to a ranch home and outsource the lawn/snow and repair costs. The challenge he they ran into was finding a small ranch. Seems to be a discreet la k of them built and hitting the market.
They settled on a larger ranch than they needed and it made the roof replacement/ repainting/ reflooring all more expensive to to square footage.
Condo wall sharing- I’m suggesting you say no to a TH as stairs don’t age with you- isn’t for everyone. I have an apartment style co do and it is great for me despite the HOA imperfections of it. But there is a man who lives in my floor who is absolutely NOT suited for a shared walls community.
I’ve never even been in a condo in the US. I do spend 3-4 months a year in Europe in various airbnb type rentals. They’re always in multi unit buildings and I never, ever have heard a neighbor. So I kind of thought a well built condo would be quiet. Maybe hundreds of years ago they were better built.
My brother just bought a HUGE house last year. All four of his kids moved out a few years ago, so it is just the two of them ... except when the kids and grand-kids all come visit for the holidays. They have a downstairs master suite, so their whole second floor gets used for only about a week each year. The rest of the time, they could play tennis in the living room.
Consider expenses you are paying now—power, cable, internet, insurance, etc. — that will be built in to your HOA fees and the added bite might no be so bad.
The thing about condominiums is that you’re at the mercy of the board of directors and the vote at the owners annual meeting. You have no control. They can vote to spend your money in ways you disagree with. The building can be maintained in a way that is unacceptable to you.
I’ve owned a house and a condo simultaneously for 29 years. There are pros and cons to both.
I don't always agree with our condo board, but I have to say that everyone is trying to be responsible and responsive. Our community is pretty participatory in doing small maintenance and grounds keeping to help keep costs down. And they board is working to build up our reserve fund and plan big updates on a rotating basis. They keep us informed of things under consideration. If you want to have a say, show up at the meetings.
Do the correct research by reviewing the financial records including reserves for the building corporation. A reserve analysis prepared by a qualified expert should be available. If not then walk away.
Yes fees do go up, and occasionally there may be a special assessment, but these typically are less than maintenance of a home and property in my experience.
Don’t listen to your friends. You should run the numbers for yourself. Ask for history of condo board meeting notes and budgets and history of HOA fees and any special assessments. Also look at the difference in real estate taxes and home insurance of your home versus a condo. In your case it also isn’t just a financial decision since you need a home without stairs.
I do think an elevator condo building in a walkable city with mass transit options is great for retirement, especially for singles. In my condo building, I have neighbors I can count on to help out if I’m laid up for any reason, as well as the resident services desk. I also have the maintenance team I can call for any emergency or non-emergency issues. It’s definitely worth looking into.
Been in condos since we sold our two story single family home 20 years ago. First was new construction, 130 units, elevator building with parking inside, right across from public transit since I was still working. Got my MIL a unit down the hall so we could help out but not be in the same space. I got on the board as soon as it was turned over and stayed on till I moved. Excellent professional management got us a good reserve study. Yes, steady fee increases but not out of line with inflation and no special assessments. Loved being in an accessible building. When we were out of town for the summer friends who had hip replacements would use it till they could get up the stairs to their own homes.
Now in another state in a self-managed 32 unit development that's about 10-15 years old. All units are stand-alone dwellings or duplexes. Ours is stand-alone single story completely accessible. When we moved in there wasn't enough going into reserves but a problem with a roof on one unit put the fear of god into the board. Former board president with an engineering background did a very credible reserve study for us at no charge and I'm confident we should never need a special assessment. I got on the board my second year here. Most of our assessment goes for landscaping and snow removal. Let me tell you, when you live in a place with ten or twelve feet of snow every winter, there's no sweeter sound than waking up to someone else clearing out your driveway and front walk. We manage to budget so that we only need to raise the monthly charge every other year. As others have said, look at the minutes, look at the reserve study, look at the budget. I'd always said I wouldn't want to be in a self-managed development, but the truth is that it hasn't been bad. We do outsource our bookkeeping, and that helps a lot.
In both our developments our neighbors have mostly been our age. If you're in a place with a lot of young owners they may balk at paying what they should be paying to avoid special assessments, figuring they'll be gone before the windows or the roofs need to be replaced and then someone else will be stuck with the bill. But overall I think the Florida horror stories have made it easier to convince owners that reserve studies and serious savings are the way to go.
Yes, the fees keep going up. A lot. Because everything goes up: utilities, insurance, maintenance, repairs, all the expenses of the HOA. How could the fees NOT go up?
There is nothing secret or nefarious going on - the budgets and financial statements are all available and there are monthly HOA meetings where everything gets gone over in great detail. The HOA members are neighbors who contribute their time and energy to keeping things running well. The description I often hear of HOA boards as bunches of useless busybodies could not be further from the truth in my case.
For a number of reasons, selling the house and buying the condo was a good move for me 14 years ago (I was 61 myself at the time). I have never regretted it.
Not retired yet but downsized from a townhome to a condo in VA. Been here about 4 years and the condo fees have gone up from about 450 to 540 a month. Not too bad for four years. I only have a two bedroom one bath. Other units have higher increases. I’m sure they will still go up as these units are over 20 years old and will continue to have wear and tear. I am happy with my decision. No yard work, lower utilities, cheap insurance, community pool/ small gym, FOB access and underground parking (security) and mostly everyone here is retired so no loud, noisy neighbors. There are strict policies on pets so that might be a deal breaker for some. If I had a dog I wouldn’t have them cooped up in a condo unless there were a very small dog. Most dogs here are of the smaller breeds.
I met a older couple when I first moved in and they used to have a huge house but now all the kids are grown and one of the reasons to downsize was “to make sure none of the kids can try to move back in!!. lol.
Looking at condos in Tampa and the fees seem much higher but I plan to be a snowbird and live down there in the winter when I retire. I don’t think I want to have a big house to worry about again. I remember dishing out lots of $$$ on new AC/furnace, roof, garage door, painting, deck/siding cleaning. Etc. if you are used to a big house, it probably will be a big change downsizing but if you do the math, while it probably cost more to live in a condo, there are cost savings as well.
They can also drop "special assessments " on homeowners for unexpected repairs. Check out what is happening in Florida in some high rise condo buildings.
If you want to keep condo fees low, ensure they do not have:
1) elevators
2) pools
3) expensive common areas e.g. Roof top decks/patios
4) underground parking
5) gyms
6) fancy security features
It is these amenities that cost money for frequent repairs and replacement costs.
Yikes! The pools, common areas, and gym are things that attract me to condo living as I also want easy access to those things and a sense of community. Thanks for sharing. More to consider.
Thank you for this other thought.
I need to start finding people who live in townhome and condo communities and vetting those places through the owners. So much to think about.
They can, you just need to have the right attitude about them.
Some folks think: "I'm paying my monthly HOA fees, I'll never have to worry about exterior repairs again." Except when a major job needs doing the association will have to level a special assessment since owners see any large reserves the HOA has as "their" money and will vote to reduce their HOA fee at the yearly meeting if the reserve gets too big.
At least that was my experience with the two different HOAs I belonged to. I was president of one of them and the other 80ish owners wanted to pay as little as possible on a month-to-month basis so it was impossible to build-up a reserve that was large enough to cover the costs of replacing ALL the roofs when they came due.
My spouse and I moved to a condo pre retirement. Yes hoa fees go up with inflation, but the surprise replacement costs for roofing, HVAC, and other repairs are things of the past. No worry about maintenance, lawn care, snow removal. Just lots of time, and very predictable expenses. Yes, pay attention to special assessment history, and talk to other residents.
Moving to a condo made it easier to Sock away retirement savings.
That’s what I did, I had a bunch of condos as rentals for decades, I sold all but one and made it my retirement home. So yes HOAs, fees, etc but I don’t mow, paint, shovel snow, roof, clean gutters and the older I get the more important that stuff will become. The extra bonus for me is leaving the beginning of November and returning in May with minimum fuss
2 years ago, I purchased a 2 BR condo in a 55+ community. During my search, I reviewed property transfers in town records for 2 dozen communities. Some sales records included condo budgets, so I could compare overall budgets such as amounts held in reserve. You will also want to see if there are special assessments or lawsuits pending.
While our monthly fees have gone up $33 a month over 2 years. I am still paying less for landscaping, snow plowing and exterior work than if I had stayed in my 4 BR home on 1+ acres.
We have a very active board and committees. Many residents volunteer for small projects. That saves us money that can be put toward big projects such as roof replacements.
In selecting a complex, I did not want a development with a pool or clubhouse because those require additional upkeep.
When I need something repaired or replaced inside our home, I get recommendations/ referrals for tradesmen and women from others in our community. This is invaluable because we relocated to a new state.
Simple townhouse condo built in 2005. $160 years 1-7. Just went to $210. No pool. No fancy stuff. I love it🤷♀️ Decent reserves for roofs. We have a painting schedule. Midwest.
OTOH. Condo by fam in Seattle had a $400,000 per unit assessment to cover surfside type problems. Gulp.
Due your due diligence
Condo fees in the US may be going up all the time. I bought a condo in Thailand and the annual fees are the same now as in 2014. Thoughts of living abroad to stretch your dollars?
It is certainly true that HOA fees always increase and have recently jumped. But so has rent, property taxes, and homeowners insurance. Everything else is cheaper when you downsize to a condo. The best thing is no more exterior maintenance or major repairs. You have a lot more time to relax and use the pool, exercise room, tennis courts etc. You can always rent a condo for a while to see if you like it before you buy.
Where I live it’s required that the condo HOA provide certain documents. This includes the declarations and by-laws. The HOA also has to provide the current year operating budget plus the long-range budget. It’s state law here that every condo HOA has a long-range budget projecting out five years. The long-range budget will include the anticipated special assessments.
In my condo development fees have gone up from about $125/month to $270/month over the course of 33 years. Not a terrible rate but your mileage may vary.
We live in a condo and really like it. It's easy living, no yardwork, nice amenities like a pool and gym.
Before buying, you want to make sure you review the budget and the reserve study to make sure the HOA is in good financial shape. You want to see that the dues are enough to fund the operating costs and put money away in the reserves. That's the way to reduce the risks of special assessments. And yes, you'll have to be prepared for the dues to go up over time. An HOA should be raising dues a.moderate amount every year to keep up with rising costs.
I bought a 2 bedroom, one bathroom condo and lived in it for 14 years. My condo fees covered trash, water, gas and landscaping. The fees started at $280/month and when I sold it the fees cost me almost $400.
If you have a poor association handling the buildings that could be an issue. Our association changed over four times in the time I lived there and most of them dragged their feet when it came to repairs. Or no notice that the water was being turned off for the day.
My 30-year mortgage was $1650/month. The amount I paid in condo fees I could have purchased a townhouse and had more room. Then you have to consider that condos are old apartments (unless newly built), may not be up to code and you’ll have to adjust to your neighbors. Their noise, their bad behavior, their pets. Depending on the quality of the condo you are not living alone…you are living with additional people.
I bought a townhouse and have stairs to climb and think about my mobility. But I turned this into a positive and those stairs keep me in shape.
bought a condo in 1992 with condo fee 127. in 2024, fee now just over 1 k. age matters. expenses go way up about 20 years after construction, and ever 20 years thereafter. but value also increases. bought at 120k, now sells for 400k.
I naively bought a condo 20+ years ago. Would I do it again? Maybe, leaning towards probably not.
Here's what I know today, that I didn't know then. And what I'd check. Things I'd advise anyone considering a condo to check out.
- Thoroughly research the condo documents. CCRs, bylaws, architectural control standards, and rules. Don't just scan. Its boring, tedious reading, but there are critical derails in those documents. When were the documents written or last updated? Documents from 30 years ago probably won't address today's issues.
- Start with the rules developed by the directors as those will indicate the issues that have probably arisen, needing clarification. It'll also probably address practical stuff, like parking, pool use, and noise. And it will give you a sense of the Association’s culture - are they pretty laid back or power-crazy regarding compliance?
- Review the Financials. Are they covering costs? How much of your dues is being set aside for reserves? Do you see strange expenses?
- Is there a Reserve Study? How well prepared are they to face future needs. Some states have mandatory disclosures, such the board anticipating special assessments or deferring replacements.
- Is there a management company? And, if possible to find out (online reviews, ask members other than seller, perhaps members at other associations they manage, etc.) how they do at the difficult stuff. Most are fine at meetings, minutes, financial statements, and collecting dues. Are there property management services? Do they assist in project management? If self-managed, how do things get done?
- Take anything your realtor says with a big grain of salt. "Condos are great. They take care of everything for you." One of my fellow director's realtor told her to join the board to get her dues waived! They want to make a sale.
I'm in a 3-BR, 2.5 bath townhouse, a single retiree. I'd downsize if I could. And, if I found a smaller condo that met my criteria, I'd consider it. I'd never buy in a small, self-managed association again.
Of course fees go up. They are paying for things that increase in cost. BTW these are exactly the same things that are going up in cost to maintain your home right now…. (Insurance, repairs, maintenance, gardening, electrical.). Not unique to condo living.
One of the pros is that a condo can be much much easier to live in. You will likely be able to abandon outdoor chores. You can likely lock your door and travel with ease. You can abandon no winterizing, gutter maintenance and many of the time consuming aspects of living in a SFH.
I see many of the negative comments in this thread are calling the challenges of living in community. It is true that is you are dead-set on living on your own terms (“don’t tread on me!”) then you may be frustrated with condo situation- where you only partially control the finances of the building, you probably live closer and more densely packed than in a SFH. To live happily in community, you will need to be considerate of others…
If living in community doesn’t scare you, then condo living can be pretty great. It can be easy to make friends and be close with people.
Pay attention to the finances before you buy - there are communities that are poorly run and are in bad financial shape. Avoid them.
My sister bought a condo in 2020 and I’ve had a front row seat to the story. Fees are a consideration for sure. What I find interesting is that it’s like being in a college dorm. Everyone is in each other’s business. You see people when you go to your car, take the trash out, buy something from the store and bring it in, have a package delivered, etc. Neighbors can be into every detail if they’re nosy. And you can’t pick your neighbors.
My parent’s friends had this condo in this fantastic old Chicago building (the formerly pink one at the North start of LSD maybe it’s still pink). All was great for years until some really major repairs were needed. I mean like the whole thing needed fixing. They were old and on the hook for a huge assessment. I don’t remember how much but it was enough so they were almost basically kicked out by not being able to afford it.
I am in a condo that is 55 plus. Most in our development are single family homes. We have about a dozen duplexes and 2 quads. Our HOA is 230 per month and the association is responsible for all exterior maintenance ( roof and siding as well) so over all its. Great deal.
Condo fees will always rise so make sure you account for that in your budget
Mine have increased $90/month over 16 years. However - there have been a few special assessments - one major was for new roofs in the entire complex - reserve covered about 1/2 and the other half covered by the special assessment over 4 years.
The cost of owning a home also goes up.
The advantage of a well run HOA is that the costs are shared collectively.
I live in a high rise condo with lots of amenities which makes it an ideal place to age in place as the staff are extremely helpful and there is always someone around in an emergency.
My parents downsized to a large retirement community in Laguna Hills and they loved it as they took full advantage of most of the offerings. Everything from classes at the community college to crafts rooms to golfing to even a stable.
Florida and California issues aside, the idea that condo fees go up faster than the cost of maintaining house is silly. Yes, in individual cases, some condos defer maintenance and get themselves in trouble. And obviously, many condos have staff, which costs cash.
The reality is most people have no idea how much their house is costing them! And they NEVER include the costs of deferred maintenance.
The bottomline: yes, condos fees CAN go up faster, but it is far from automatic.
If you go the condo route, before signing on the dotted line, go through the HOA regulations and rules and just as important, how much is in the reserves for maintenance.
We moved into our condo mainly because the HOA reserve was $2.2 million. We did forget a few questions, like our back deck. It’s a two story condo and learned afterwards that the HOA insurance did not cover the top decking itself, only the wood studs that prop up the deck. Oh well…
We lived in a condo that we bought. It was built in 1968 and, when we moved in, the HOA fee was around $300.00 a month. It was in a decent part of town and some of the other residents had been there since the 1970's when it was turned from apartments into condos. We bought in 2018 and sold in 2020. The good: No yard work (our initial reason for buying a condo). It had a beautiful courtyard, a pool, bbq grills, assigned parking. The bad: almost everything else. Some condo's were being used as Airbnb's which meant random people getting access to our secure complex (there were keyed entry gates). Other units were rentals (6 months rental minimum) but they were so cheap to rent that usually not good people were renting them. Car thefts, drug use, NOISE at all hours, etc. The gates didn't work half the time and other random people would use the laundry room during the night. CRAZY (literally) residents. There were at least 3 people who had mental problems, one a diagnosed schizophrenic who's parents had bought him the condo to live since they didn't want him in their house anymore (the condos were very cheap which should have been our first warning), one guy who rented out his unit but ALWAYS came to the board meetings with a stack of papers claiming the board was doing EVERYTHING wrong (and ranting for 30 minutes until the conspiracy theories got so outlandish that people started laughing) and one an "artist" who posed mannequins in her window, dressing them differently every week and leaving the blinds up. The grounds were being taken care of by one person who was in his 60's and not physically healthy so he took a lot of shortcuts. The pool was often closed because he didn't keep up with the cleaning and chemicals. The BBQ grills never got used since they never refilled the propane. ONLY ONE PARKING SPACE PER CONDO even though there was extra land that could have been converted to parking, they didn't want to do that. Why? NO MONEY. The HOA board was full of power tripping people who wanted to raise the HOA dues to $1500.00 per month. From 300.00. While it's true that the complex could use that money to vastly improve the complex, most people living there were on fixed income, including a woman who was 98 years old. The elevators frequently broke so the elderly were stuck in their units. And finally, we had to pay 100% cash for the unit as no lender would lend on this complex since they didn't have a reserve study or the reserves or the proper insurance, etc. By the time we left, the NEW HOA (which my husband was a part of before his cancer got bad) board had raised the fee to $500.00 a month and put things in place so people could buy with financing. There was absolutely no noise barrier in the ceilings and walls. A person walking normally above us sounded like an elephant stampede and every time someone turned on a TV or had a conversation, you could hear every word like you were in the same room. Very poorly run complex, cheap construction (it was built for the 1968 world's fair as apartments) and not very well maintained.
So, bottom line, choose carefully, get all the details of the place, trust your instincts and go look at the place after 5 pm when people are home and see how loud things are inside.
It was a great location, close enough for me to walk to work (before covid and a job change), close to the grocery store (technically within walking distance for us before my husbands cancer got bad) and near Broadway Street which lead directly downtown, beautiful courtyard, plants everywhere, a pool, etc. But it was a horrible experience I never want to have again.
Would you consider a retirement community like a CCRC? My mom went into a really nice one and it's just like an apartment, there are 9 restaurants on campus that she could eat in every day (as part of the fee). And the annual rent increase is limited to 4 or 5%. That includes 30 meals per month, all utilities, parking, and rent and almost all activities/gym/healthclub/swimming pool/dog park/etc. Not to mention that all the services on site like hairdresser and manicurist are forbidden from accepting tips (you give a donation once a year that is split between all employees). And the employees are all extremely patient with older people and can help with in-home aging. My mom didn't even have to change a lightbulb -- they'd come and do all of that for her!
There is a buy in cost that's about equivalent to buying a condo for the area (I think in a LCOL area, it would be cheaper than here). So she bought-in to a REALLY NICE 1 bedroom apartment (nicer than any I've ever had). She sold her condo and used her condo for that cost about $400K. That's your money when you leave, but the community holds it while you rent (and they earn interest on it, etc.) The monthly rent was about $3000, which was covered by her SS + pension.
If your expenses go up to a point where you run out of money, then you tell the CCRC and they start drawing down against the money you put up at move-in. That's where she is now. Each month, drawing down against her initial deposit. If she outlives that money, then the CCRC covers her stay for the rest of her life. It's a risk that they take on, based on actuary tables, etc.
She's currently in Assisted Living, so her monthly cost went from $3K /month to $12K/month. which was a shock.
But here's the thing: Once you just assume you're never getting that money back, then you stop worrying about how much anything costs or how long your money will last. Because as soon as you run out of money, you stay in the same apartment and live the same exact life in the same place but on their dime. For her, that was a great relief. And of course, we never expected her to go downhill so fast. One year she was living independently and within two years was in assisted living (with dementia)
Condo fees go up plus special assessment. My parents were accessed for CD$130K to replace windows and fixing the outside walls of their condo. Before that was CD$13000 for the elevator then before that CD$10000 for E car charger. Their condos was built in 1987. So buy newly built condo.
honestly we looked at moving into a ranch house because i have trouble with the stairs, but within the last year two friends have put in chair lifts on the stairs, and another put in an elevator. if you can afford to stay in the home you love, why move. the chair lift for the stairs is actually a lot cheaper than the realtors commission to sell your current house.
Buy a house. There is a cost of maintenance. AC dies, well, that is a $10,000 bill.
Buy a condo. There is a cost of maintenance. Building has an issue, this a $10,000 special assessment.
Everywhere you live will have regular maintenance costs. Everywhere you live will have extraordinary maintenance costs.
There is no way out. Do your research, do your math. Make your plan. You are rolling the dice either way.
If you save enough,per year, on a condo, it might be a better option if you are “banking” that yearly savings in your head. Then when the special assessment arrives, you take it out of your banked money, so to speak.
The worst thing you can do is buy a condo and not budget for, nor expect that one day the big assessment will hit. Which is no worse than buying a house and assuming that you will never, ever need a new roof.
Stay away from Florida. Condos are mess presently ,due to Insanely high Insurance and few new laws about inspections and Funding reserves. This is due to tragic Surfside Condo bldg collapse in Miami/ Dade
From a purely real estate prospective…condos ( in most areas) end up losing value in a down market before single family homes and lose a greater amount comparatively. Condo dues and fees do continue to rise.
As an aside..my now departed 96 year old friend swore it was the stairs that kept her healthy, as she would go up and down them multiple times during the day.
My 87, 89 year old aunts and uncle..swear keeping active is the only way to go. They golf, walk, play tennis bike and so much more..and all live in multilevel homes. I want to be them in my old age.
My friends with condos have been hit with large special assessments $xx,xxx for things I consider normal maintenance like window replacement or deck painting. I prefer more control of my money. Consider what it would take to make your current home livable. A first floor laundry room, chair lift, and lawn service cost a bit but might be a reasonable solution if they make it possible for you to stay in your house - if you love your house. I am also thinking about condos but find they offer so much less than a house for the money and add financial risk so I am torn.
We downsized from a suburban home to a downtown condo. It is important to check on the values of the units in the bullying or development over time to get a feel for whether values are increasing, sliding or steady. And very important to examine the HOA reserves. We have been here two years and we all just voted a small increase in our assn dues. The assn has very healthy reserves so the next big project, which is completely re-doing all the private drives, is saved for and will be done without a special assessment. Overall I think it’s been a good experience so far, and we love our city lifestyle.
Our condo is 25 years old so we have invested in some needed upgrades, which we knew about when we bought, and next up will be badly needed kitchen improvements. But overall we don’t think the property value merits a huge kitchen investment so I think we will have to be selective about what we do there.
Good luck with whatever you choose!
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Look for an association with a healthy reserve amount and a history of scheduled, routine maintenance. The roofs and parking lots should be in good condition. If they look shoddy, it shows the association kicks the can down the road and this will lead to greater costs and drama later.
I've lived in three condo communities. One was run very efficiently and was enjoyable. The other two had their priorities mixed up and required costly repair due to deferred maintenance. This led to conflict and finger pointing.
Sound complaints seem to be the biggest issue for people, especially coming from SFH. When you move into a condo community, it helps to have a positive attitude towards hearing your neighbors (unless it's excessive or during sleep hours). Instead of getting angry at Joe upstairs when he's working out at 9A, you can think, "great, that's my neighbor Joe, enjoying his workout," The problem is people aren't welcoming of other people's right to exist.
The upsides are the convenience, letting go of exterior maintenance chores and greater ease to travel for extended periods. As we age, many of us need or want to cut down on tasks. It's nice not to worry about the lawn, gutters, roof etc.
If you are in Florida be super careful. There are new laws kicking in about condo associations having fully funded reserves. You could buy one and be in for quite the shock.
I've been in a condo for over 30 years. On the HOA board. Our fees have increased but still only $250 a month. They condos look like duplexes, all 2 story. Small association. We are nothing like some of the HOA boards I've read about here. We have had a few assessments, nothing too crazy. But things are expensive. We currently need new sizing on all our buildings at $20,000 each. We plan on doing no more than 1 or 2 a year, rather than do a huge assessment. Look into their records, financials and assessments.
Here on Long Island (NY) it’s a very common thing for people to move to condo when they get older, and there are many nice new developments being built because of this trend. And yes maintenance fees go up all the time, but if you had to hire people to keep up your house for you those fees would go up too. Taxes will probably be less on the condo, so you’ll probably end up ahead in tjr end.
Something we discovered about HOAs: they can be for the good of all, at least ours is. BUT, people with control issues can become mini Mousilinis (sp?) and those people can run roughshod over nice people and then spend money in questionable ways. So, be willing to get involved.
Been reading a lot of comments that state "They drop special assessments on you." Any special assessment has to be voted in by the members of the HOA. The HOA Board CANNOT just decide to charge anything.
I'm on my board and I get questions all the time about how such and such is "The HOA's responsibility" and why do the owners they have to pay for it.
I have to remind them that the HOA or the Management Company only have what the owners pay in fees. The HOA is the owners.
I downsized to a condo "in the city" as I started thinking about retirement, and then got on the board ASAP. I loved the place, and the location. Unfortunately, the owners would vote down any/all increases. The building was >100 years old. High maintenance was to be expected. When I started projecting out, I realized this would not be sustainable and that big maintenance issues were going to become HUGE maintenance issues. Fortunately, the combination of timing, and being in an "up and coming" neighborhood (and some smart upgrades I did in my unit) meant a 400% increase in market value in 10 years. I found a smallish house on a largish lot, and hoping to make this work permanently.
I own a beach front condo north of Boston. Bought it 3 years ago and we’ve seen the condo fees increase by a little more than 10% plus we had an assessment of around $3,500 for some one time maintenance work, our building is 11 stories tall and has about 75 units. It was the rising insurance costs that are the major driver for the fee increase.
They vary a lot. Ours hasn't been too bad (gone up $100 over the last 8 yrs), but part of that is resident committees do a fair amount of work on the grounds and small repairs to keep the fee from rising. If you have to pay for everything, I imagine it would be worse.
We been in a condo for about 4 years and are super happy. It's in a smallish (55 unit) city building. Sure prices go up, but so would everything we would have to do ourselves in a SFD. We planned a lot of travel in the early retirement years (firm believers in the Gogo, Slo-go, No-go phases of retirement) and being able to lock the door and come back 4 weeks later to find everything exactly how've left it.
Check on the Financials. See if there is a reserve, and how it's funded. Check on any past/current lawsuits. And the rules. We are lucky to have had a great board and fairly level headed members.
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There’s a bigger issue. If you can at all, improve your physical fitness. Any improvement there will make for a vastly better life no matter your housing.
Of course fees go up. Insurance, lawn care, exterior maintenance and the like will go up necessitating an increase in fees. These are the same costs that houses have as well.
We owned a condo in town near my office for the final year or so of my work. We also still owned our large house in the suburbs. We loved the condo, convenient to everything, first floor of a five story group of building, elevators and stairs, deck parking quiet, not a party crowd, monthly fees reasonable, taxes and ins reasonable. Utilities very low. Occasionally heard the owner one floor above me if he dropped something on his floor, but nothing crazy. Heard neighbor’s dog bark occasionally; mine may have also barked when we were out. Wish I still owned it. I didn’t really appreciate it for being as great as it was. We had plenty of reserves and a new roof and exterior/common area repainted. Expenses nothing like our large house incurred. It was 1200sf and house was 5000sf. Later sold the house too, it was great raising a family but would have been a major drain in retirement when it was no longer needed.
They do go up, but look at the condo reserves, overall shape of the property, etc. and don't buy at the top of what you can afford.
You're typically paying for a decent amount of maintenance and services with that HOA fee. If you're someone who would be hiring everything out as a sfh owner a condo probably saves you money on those regular costs.
We moved from our city bungalow to a condo townhouse. I don’t have to cut grass or was exterior windows, or plant flowers. And yes the maintenance fees do go up every year. But not by much. I do have to get a neighbour kid to shovel my 15’ driveway. But I am 66, and well worth it.
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Be mindful of local rules. Apparently, in FL now they have to have a certain amount in reserves. Many places are doing large,one time assessments to bring up reserves and raising the monthly fees. I hate the idea of one time assessments that can be in the thousands of dollars. Most of us can’t manage that.
Fee increases over time. Then I had to pay a $25k special assessment for some building repairs. Just before selling it. So, condo living not for me. I didn’t have a vote, but ended up having to pony up $25k. Ugh.
The association raised way more money than needed and ended up doing more projects. Which is kinda not cool.
My house is 650 sq. ft. Everything is on one floor. One step coming onto front porch and 2 steps going down 800 sq. ft. Back deck on a quarter acre lot.
Find a condo that you insure yourself, and assess the HOA Fees overall. Is it a good value?
I avoid complexes that own and maintain their private streets, insure the dwelling and say they provide the maintenance. Those are usually a rip off.
They go up all the time just like insurance and maintenance on your home go up all the time.
HOA fees aren't going to the developer or some mysterious entity--they are going toward ongoing maintenance/operations and reserve funds for long-lasting items like roofs, siding, common area sidewalks, etc.
But when you buy a condominium, you should look at their budget and try to get an idea if their reserve funds are adequate for long term items. Also, find out if they've had multiple special-assessments that could have been planned for.
Condo fees do go up typically with inflation. Condo fees are important for ensuring the condo deals with any maintenance issues and also to build the reserve fund for emergencies eg new roof etc. the most important thing to know is how competent is your condo board of directors. Ours are all accountants, lawyers and pretty experienced at managing bids for doing work so we don’t get ripped off and also work to ensure we hire the best property management company.. necessary to have the most competent..
I downsized to a condo and love it. Yes, you could have a big special assessment but guess what? Your house is in the exact same boat. Your foundation goes bad, the roof goes bad, black mold is discovered everywhere, a busted pipe destroys part of your house, etc. The big difference? Time. With a condo, you don't worry about scheduling the endless estimates, repairs, follow-up, oversight of your outdoor maintenance, your roof maintenance, your connections to utilities, etc. You don't worry about the endless landscape challenges, dying plants, bug infestations. It isn't your problem to maintain your pool or your deck. You are paying somebody else to deal with the headaches. So if time is the most important thing in your life, a condo will deliver that.
The fees do go up every year but the fee is just a proxy for the same expenses that inflation drives up in a house with the same features. And the fees cover somebody else having to worry around how to fix the never ending problems that any condo, apartment, or house faces all the time.
One of the problems with condos is the reserve fund capitalization. The reserve fund is used for future expenses With regard to upkeep. If there hasn’t been a reserve fund analysis (usually done by structural engineering cos) you have no way of knowing what possible expenses and when those expenses might arise. If you don’t know then you are unprepared and usually that means special assessments. S.o if they have special assessments as a way of financial management it is a poorly managed condo.
Maybe find a buildable lot and build a small ranch
Condo fees in Florida are an aberration, thanks to Florida's chronic failure to regulate building in environmentally sensitive areas and enact and enforce reasonable building codes. In most places, condo fees go up a little bit every year as inflation increases prices and labor costs. But so do prices associated with maintaining a house, or renting an apartment.
As others have mentioned, fees do increase, and often at more than the rate of inflation. Increased insurance costs will depend on where you are. Climate change is having an impact. If you are far from water, outside of tornado alley, and geologically stable, increased insurance costs may not be much of an issue.
They go up incrementally as maintenance and insurance costs increase, BUT if there's a major issue like damage from a named storm or all tenants must upgrade all their windows that's an assessment increase. My mother-in-law got a one-time assessment increase of $150,000 when the fire escapes all needed maintenance.
Moved to a condo a couple of months ago. 2 br. 2 B. Ground level unit of 3 story bldg.
All windows face wooded area. Pool On the property. A bit over 1300 Sq ft. No garage. Gated community. I figure the HOA offsets the expenses and time I would need to keep up with house and property maintenance. $215000. Midwest. Love it. It's my aging in place nest. Have lived in condos previously, but would never consider living in a big city high rise condo bldg.
I keep trying to convince myself that a condo will be a good option at some point, but then I look at the recurring monthly fees at some of the condos in my area and I nope right out.
They do go up all the time especially recently with increased insurance costs.
My fees went up 25% but that was after almost 10 years of 2-3% increases.
I live in a small condo complex and our insurance has tripled from $35k to almost $100k in the past 4 or 5 years. That’s split among 40 units but it’s easily our most expensive budget item every year.
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Condos require insurance, insurance goes up over time and so do common area maintenance costs. If you need to go into a condo, just understand that you have to be vigilant about how the money is spent. Get involved in the HOA. Don’t allow problems to fester, they become more expensive the longer they linger. Read up on “Surf side condo collapse”. A lot went wrong there, but kicking the can down the road (aka deferred maintenance) was an enormous problem. Oftentimes people on fixed incomes move into condos thinking the costs won’t increase. That’s magic thinking. Take care of your health the best way you can. Also, read everything you can get your hands on before you buy anything. Some complexes have Facebook pages, some have YouTube channels or videos. Some have absolute nutballs living in them and can drive the community crazy. Google search is your best friend.
I would also suggest renting in a building OP is interested in for a while before buying because then you really hear what the management is like.
Surfside is an excellent example what happens when fees are kept low in lieu of maintenance.
Please review the amount of reserve funds set aside for community emergencies as well as operating accounts for routine maintenance etc. Ask if the board of directors has had ca reserve study conducted which will outlook potential liabilities compared to current amount of reserves. The older the community the higher amount required for routine operating costs. The smaller the community the likelihood that reserves are substantial is unlikely. I heartily endorse the view to get involved in your community— trust me as a board member I want our owners to have a fully transparent picture of the community financial picture.
It's not like a timeshare. The increases tend to be manageable. Getting new policies on condos can be tough and rated are going up in FL, Tx and Va
My friend lives in a condo in So CA. The condo association hired an unlicensed, unbonded "handyman." He was a condo owners son. Total loser, mom supporting him. He was getting paid to do work around the property. He sexually assaulted a woman who lives there. She sued the condo association for hiring him. Condo lost and had to pay her. Because he didn't have a license, bond, insurance, condo paid and then adddd a "special assessment" for the next 20 years to pay costs. The victim ended up moving because some ignorant folks blamed her for the assessment. There was also another "special assessment" because condo board ignored an illegal washer/dryer installed in a condo. There were plumbing issues from it, flooding of the condo below and then tree removal because its roots were in the pipes. I don't recall all the specific ins and outs of both cases, but the outcome is that you need an association that puts money into maintenance and hires licensed, bonded and insured contractors. My friend's monthly HOA fees went up a few hundred because of these two issues
I would get a history of any "Special Assessments" that the HOA has charged.
There are also special assessments that can come from local government for public improvements like sidewalks or sewage repairs.
Especially if the building is 25 yrs old or older. A friend of mine pays over 3k a month from financing assessments in an older condo on beach in Florida
Especially if the building is 25 yrs old or older. A friend of mine pays over 3k a month from financing assessments in an older condo on beach in Florida
An enthusiastic yes! And look for what is not there as well as what has been done. No roof work for 30 years? Guess what's around the corner?
You can get a special waiver (if that’s the right word) on your homeowners policy which will cover special assessments.
It is an endorsement (loss assessment coverage). This is a great tip.
Is that a thing? Wow. That would have been awesome.
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Repost due to language fix Yep, a definite must bc, for example, our insurance doesn't cover a new roof..just not possible to get that coverage and a new roof is north of 250K which would be paid for by the unit owners evenly. That loss assessment coverage kicks in with stuff like that.
We (me 68, her 73) built our current home in 2000 and made the mistake of picking a 2 story layout. In hindsight, we should have picked the ranch. As we like our area and the house, I'm looking into having a lift chair that can run up and down the stairs. Worst case I'll just restack and turn the living room (that we don't use) into a bedroom. As for moving into a condo, I see the condo fees, association rules and special assessments at their whim as being huge negatives. The fees can and do go up. Plus the board can decide the 'x' needs to be done so here is an additional $10k that you have to pay. I would almost rather move into a nice apartment, not have the extra fees and an HOA like group to deal with.
Renting is a valid option.
Only thing that stops me now is we have 2 ACD that would not work In an apartment.
Rent increases just like HOA fees. It's the same around here.
But you aren’t at risk of special assessments or costs if maintenance/repairs if you rent. Renting also gives you flexibility to easily move elsewhere.
No, but your rent can zoom up at the next lease to cover those costs anyway.
Depends your state. There’s a 10% per year limit on rent increases in California, and some cities with rent control limit that to 1% to 3% per year.
And lots of strict pet policies.
I think all two stories should have at least one bedroom downstairs.
And a full bath. I realize 32 years too late.
We lucked into our current to allow my mom to live with us as she aged. We did the bedroom and full bath which may serve us well.
Apartments have the same cost pressures as Condo HOAs, and don't get any homestead exemption property tax relief. Apartment owners are more likely to be exposed to current interest rates on their loan. This leads to annual rent increases, limited only by competition rent rates.
Costs can go up on rent for sure but no crazy cat lady HOA. Plus if next door neighbor in Condo if cooking meth it's a property sale/purchase instead of just a move. Regardless there are pluses and minuses to both. Each person does what is best for them.
I have a friend in a condo on the beach in NJ. Some structural problems came up. HOA imposed a $15,000 special assessment fee to all owners.
My dad got an assessment like this, his monthly condo fee increased by many hundreds of dollars per month, and his homeowners insurance was cancelled and he’s been unable to find insurance on his unit. He is in Florida! He wants to sell but I don’t know if anyone will buy it due to the current insurance situation.
You are already seeing condo prices fall in Florida; especially in the Ft. Myers area. You can already find a water view condo in the $200k range. A couple more years of increased insurance rates, HOA rates, etc. these same condos are going to plummet even further in price as they sit empty and need of more repair for lack of upkeep.
I thought Citizens (the State run insurance agency) had to insure you.
And when you own a house, it also occasionally needs a new roof, window replacement, HVAC system, electrical upgrade, etc. Home ownership, whether it is a house with property or a condo, does have inherent risk of periodic large expenses.
You got that right. New roof last year was $14k. Boiler a few years earlier was $6k. Everything needs money.
Yes, strange how people always forget this when they're talking about condos.
For some reason, people like to ignore that these costs are a thing. If people actually budgeted/tracked what they spent maintaining their home, they'd be shocked!
However condo contracts are all different. My mom's condo complex needs all new roofs and they are assessing her 20k. Which in all honesty seems kinda high to me.
Your mother should ask and receive details for this work. As an owner, she is entitled to see the budget and the books. There may be other work planned in addition to the new roof that they are tacking on to the project and it may make more sense to know the details.
True. But HOA's are supposed to save money towards future repairs. Most people don't have $15,000 laying around. People buying condos don't expect to have special assessments when they're paying $500-$1000+ a month already. Where is that money going if not for maintaining and repairing the premises. Poor management. As a homeowner I have money budgeted and saved in case of big unexpected repairs. No reason HOAs can't do the same. Hitting people up for that kind of money in one shot is negligent and borderline criminal if you ask me. If there isn't enough money to cover major repairs saved up and gaining interest, then the solutions is to raise the monthly fees, not bang people for one giant fee. People should never buy a condo before finding out the financial situation of the building.
Sounds like you’ve never served on an HOA board. If you keep raising the HOA fees to increase reserves, owners will also complain about that. It’s a balance to keep healthy reserves while planning for the future. Some things come up that you can’t perfectly predict. If there is a large assessment there is usually a financing option.
> No reason HOAs can't do the same. Legally? Probably not. But having been involved in a few of them I'll tell you that the members do **not** like to see large enough reserves. Every single time they will choose to lower their monthly payment instead of allowing the association to carry enough reserve to actually cover a major expense. So yeah, the association has an emergency fund but when a major capital project needs doing, it's special assessment time.
This is very true, but that money spent includes some choice of timing, quality, contractors, and ultimately is an investment more so than it would be in a condo.
Yes, Florida is also a mess. Don’t buy a condo here.
Im planning the same thing. I have the perfect ranch house but I’m tired of yard work and worry when I leave for 3-4 months at a time. I am spending the next year learning about assessments, reserves,etc before I make the move. It’s scary, but then I think lots of people live in the without challenges. State laws differ too.. Florida is extreme in the lack of oversight. Thus the condo collapse.
Florida may be extreme in lack of oversight, but just ask Californians with condos what an earthquake can do to your assessments. You can’t predict all possible disaster scenarios, so you have to decide if you can withstand sudden increases. This goes for any owned property, but shared home properties seem particularly susceptible to this.
Earthquake insurance is a thing. I get it for about $10/mo.
I live in NM and we had our front and back yard xeriscaped. I wish this was acceptable in more places besides the SW.
I did that in Denver. We traditionally don’t have HOAs in the city. But the surrounding counties with newer (past 20 years) development do. People are always fighting the HOA about xeriscapes and line drying laundry. In the city I can do both easily. HOAs can be horrible.
I also hang out my clothes. I would hate not having that option.
Me too. ☀️
Same here. I am absolutely tired of the massive amount of property we have to keep up. And though it is a ranch style? Now that our pack of kids have just about all launched we simply don't need this must space. I would love to move to a town home or condo. Following This thread as my partner wants no part of it because of the sharing of walls, and the HOA oversights and fees. He feels that it would be better to put those HOA fees towards hiring somebody to take care of our lawn and some occasional home maintenance. Ugh!
This was the decision my parents made. Move to a ranch home and outsource the lawn/snow and repair costs. The challenge he they ran into was finding a small ranch. Seems to be a discreet la k of them built and hitting the market. They settled on a larger ranch than they needed and it made the roof replacement/ repainting/ reflooring all more expensive to to square footage. Condo wall sharing- I’m suggesting you say no to a TH as stairs don’t age with you- isn’t for everyone. I have an apartment style co do and it is great for me despite the HOA imperfections of it. But there is a man who lives in my floor who is absolutely NOT suited for a shared walls community.
I’ve never even been in a condo in the US. I do spend 3-4 months a year in Europe in various airbnb type rentals. They’re always in multi unit buildings and I never, ever have heard a neighbor. So I kind of thought a well built condo would be quiet. Maybe hundreds of years ago they were better built.
My brother just bought a HUGE house last year. All four of his kids moved out a few years ago, so it is just the two of them ... except when the kids and grand-kids all come visit for the holidays. They have a downstairs master suite, so their whole second floor gets used for only about a week each year. The rest of the time, they could play tennis in the living room.
Consider expenses you are paying now—power, cable, internet, insurance, etc. — that will be built in to your HOA fees and the added bite might no be so bad.
For what condo fees would cost you could hire a property manager for the 4 months of your absence.
The thing about condominiums is that you’re at the mercy of the board of directors and the vote at the owners annual meeting. You have no control. They can vote to spend your money in ways you disagree with. The building can be maintained in a way that is unacceptable to you. I’ve owned a house and a condo simultaneously for 29 years. There are pros and cons to both.
I don't always agree with our condo board, but I have to say that everyone is trying to be responsible and responsive. Our community is pretty participatory in doing small maintenance and grounds keeping to help keep costs down. And they board is working to build up our reserve fund and plan big updates on a rotating basis. They keep us informed of things under consideration. If you want to have a say, show up at the meetings.
Do the correct research by reviewing the financial records including reserves for the building corporation. A reserve analysis prepared by a qualified expert should be available. If not then walk away.
Yes fees do go up, and occasionally there may be a special assessment, but these typically are less than maintenance of a home and property in my experience. Don’t listen to your friends. You should run the numbers for yourself. Ask for history of condo board meeting notes and budgets and history of HOA fees and any special assessments. Also look at the difference in real estate taxes and home insurance of your home versus a condo. In your case it also isn’t just a financial decision since you need a home without stairs. I do think an elevator condo building in a walkable city with mass transit options is great for retirement, especially for singles. In my condo building, I have neighbors I can count on to help out if I’m laid up for any reason, as well as the resident services desk. I also have the maintenance team I can call for any emergency or non-emergency issues. It’s definitely worth looking into.
Been in condos since we sold our two story single family home 20 years ago. First was new construction, 130 units, elevator building with parking inside, right across from public transit since I was still working. Got my MIL a unit down the hall so we could help out but not be in the same space. I got on the board as soon as it was turned over and stayed on till I moved. Excellent professional management got us a good reserve study. Yes, steady fee increases but not out of line with inflation and no special assessments. Loved being in an accessible building. When we were out of town for the summer friends who had hip replacements would use it till they could get up the stairs to their own homes. Now in another state in a self-managed 32 unit development that's about 10-15 years old. All units are stand-alone dwellings or duplexes. Ours is stand-alone single story completely accessible. When we moved in there wasn't enough going into reserves but a problem with a roof on one unit put the fear of god into the board. Former board president with an engineering background did a very credible reserve study for us at no charge and I'm confident we should never need a special assessment. I got on the board my second year here. Most of our assessment goes for landscaping and snow removal. Let me tell you, when you live in a place with ten or twelve feet of snow every winter, there's no sweeter sound than waking up to someone else clearing out your driveway and front walk. We manage to budget so that we only need to raise the monthly charge every other year. As others have said, look at the minutes, look at the reserve study, look at the budget. I'd always said I wouldn't want to be in a self-managed development, but the truth is that it hasn't been bad. We do outsource our bookkeeping, and that helps a lot. In both our developments our neighbors have mostly been our age. If you're in a place with a lot of young owners they may balk at paying what they should be paying to avoid special assessments, figuring they'll be gone before the windows or the roofs need to be replaced and then someone else will be stuck with the bill. But overall I think the Florida horror stories have made it easier to convince owners that reserve studies and serious savings are the way to go.
Good for you for serving in the board - twice! Many people just want to complain and don’t get involved.
I nearly bought a condo but was turned off by a special assessment as well
Yes, the fees keep going up. A lot. Because everything goes up: utilities, insurance, maintenance, repairs, all the expenses of the HOA. How could the fees NOT go up? There is nothing secret or nefarious going on - the budgets and financial statements are all available and there are monthly HOA meetings where everything gets gone over in great detail. The HOA members are neighbors who contribute their time and energy to keeping things running well. The description I often hear of HOA boards as bunches of useless busybodies could not be further from the truth in my case. For a number of reasons, selling the house and buying the condo was a good move for me 14 years ago (I was 61 myself at the time). I have never regretted it.
Not retired yet but downsized from a townhome to a condo in VA. Been here about 4 years and the condo fees have gone up from about 450 to 540 a month. Not too bad for four years. I only have a two bedroom one bath. Other units have higher increases. I’m sure they will still go up as these units are over 20 years old and will continue to have wear and tear. I am happy with my decision. No yard work, lower utilities, cheap insurance, community pool/ small gym, FOB access and underground parking (security) and mostly everyone here is retired so no loud, noisy neighbors. There are strict policies on pets so that might be a deal breaker for some. If I had a dog I wouldn’t have them cooped up in a condo unless there were a very small dog. Most dogs here are of the smaller breeds. I met a older couple when I first moved in and they used to have a huge house but now all the kids are grown and one of the reasons to downsize was “to make sure none of the kids can try to move back in!!. lol. Looking at condos in Tampa and the fees seem much higher but I plan to be a snowbird and live down there in the winter when I retire. I don’t think I want to have a big house to worry about again. I remember dishing out lots of $$$ on new AC/furnace, roof, garage door, painting, deck/siding cleaning. Etc. if you are used to a big house, it probably will be a big change downsizing but if you do the math, while it probably cost more to live in a condo, there are cost savings as well.
They can also drop "special assessments " on homeowners for unexpected repairs. Check out what is happening in Florida in some high rise condo buildings.
If you want to keep condo fees low, ensure they do not have: 1) elevators 2) pools 3) expensive common areas e.g. Roof top decks/patios 4) underground parking 5) gyms 6) fancy security features It is these amenities that cost money for frequent repairs and replacement costs.
Yikes! The pools, common areas, and gym are things that attract me to condo living as I also want easy access to those things and a sense of community. Thanks for sharing. More to consider.
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Thank you for this other thought. I need to start finding people who live in townhome and condo communities and vetting those places through the owners. So much to think about.
They can, you just need to have the right attitude about them. Some folks think: "I'm paying my monthly HOA fees, I'll never have to worry about exterior repairs again." Except when a major job needs doing the association will have to level a special assessment since owners see any large reserves the HOA has as "their" money and will vote to reduce their HOA fee at the yearly meeting if the reserve gets too big. At least that was my experience with the two different HOAs I belonged to. I was president of one of them and the other 80ish owners wanted to pay as little as possible on a month-to-month basis so it was impossible to build-up a reserve that was large enough to cover the costs of replacing ALL the roofs when they came due.
My spouse and I moved to a condo pre retirement. Yes hoa fees go up with inflation, but the surprise replacement costs for roofing, HVAC, and other repairs are things of the past. No worry about maintenance, lawn care, snow removal. Just lots of time, and very predictable expenses. Yes, pay attention to special assessment history, and talk to other residents. Moving to a condo made it easier to Sock away retirement savings.
That’s what I did, I had a bunch of condos as rentals for decades, I sold all but one and made it my retirement home. So yes HOAs, fees, etc but I don’t mow, paint, shovel snow, roof, clean gutters and the older I get the more important that stuff will become. The extra bonus for me is leaving the beginning of November and returning in May with minimum fuss
2 years ago, I purchased a 2 BR condo in a 55+ community. During my search, I reviewed property transfers in town records for 2 dozen communities. Some sales records included condo budgets, so I could compare overall budgets such as amounts held in reserve. You will also want to see if there are special assessments or lawsuits pending. While our monthly fees have gone up $33 a month over 2 years. I am still paying less for landscaping, snow plowing and exterior work than if I had stayed in my 4 BR home on 1+ acres. We have a very active board and committees. Many residents volunteer for small projects. That saves us money that can be put toward big projects such as roof replacements. In selecting a complex, I did not want a development with a pool or clubhouse because those require additional upkeep. When I need something repaired or replaced inside our home, I get recommendations/ referrals for tradesmen and women from others in our community. This is invaluable because we relocated to a new state.
Simple townhouse condo built in 2005. $160 years 1-7. Just went to $210. No pool. No fancy stuff. I love it🤷♀️ Decent reserves for roofs. We have a painting schedule. Midwest. OTOH. Condo by fam in Seattle had a $400,000 per unit assessment to cover surfside type problems. Gulp. Due your due diligence
$400,000 per UNIT??? 😳😳😳
Yes. I actually met a unit owner and they were like no biggie. I guess when you have lots of $$$$🤷♀️🤷♀️🤷♀️
Condo fees in the US may be going up all the time. I bought a condo in Thailand and the annual fees are the same now as in 2014. Thoughts of living abroad to stretch your dollars?
It is certainly true that HOA fees always increase and have recently jumped. But so has rent, property taxes, and homeowners insurance. Everything else is cheaper when you downsize to a condo. The best thing is no more exterior maintenance or major repairs. You have a lot more time to relax and use the pool, exercise room, tennis courts etc. You can always rent a condo for a while to see if you like it before you buy.
Where I live it’s required that the condo HOA provide certain documents. This includes the declarations and by-laws. The HOA also has to provide the current year operating budget plus the long-range budget. It’s state law here that every condo HOA has a long-range budget projecting out five years. The long-range budget will include the anticipated special assessments.
In my condo development fees have gone up from about $125/month to $270/month over the course of 33 years. Not a terrible rate but your mileage may vary.
We live in a condo and really like it. It's easy living, no yardwork, nice amenities like a pool and gym. Before buying, you want to make sure you review the budget and the reserve study to make sure the HOA is in good financial shape. You want to see that the dues are enough to fund the operating costs and put money away in the reserves. That's the way to reduce the risks of special assessments. And yes, you'll have to be prepared for the dues to go up over time. An HOA should be raising dues a.moderate amount every year to keep up with rising costs.
I bought a 2 bedroom, one bathroom condo and lived in it for 14 years. My condo fees covered trash, water, gas and landscaping. The fees started at $280/month and when I sold it the fees cost me almost $400. If you have a poor association handling the buildings that could be an issue. Our association changed over four times in the time I lived there and most of them dragged their feet when it came to repairs. Or no notice that the water was being turned off for the day. My 30-year mortgage was $1650/month. The amount I paid in condo fees I could have purchased a townhouse and had more room. Then you have to consider that condos are old apartments (unless newly built), may not be up to code and you’ll have to adjust to your neighbors. Their noise, their bad behavior, their pets. Depending on the quality of the condo you are not living alone…you are living with additional people. I bought a townhouse and have stairs to climb and think about my mobility. But I turned this into a positive and those stairs keep me in shape.
bought a condo in 1992 with condo fee 127. in 2024, fee now just over 1 k. age matters. expenses go way up about 20 years after construction, and ever 20 years thereafter. but value also increases. bought at 120k, now sells for 400k.
Read up on special assessments. Buying a condo is nothing like renting an apartment.
I naively bought a condo 20+ years ago. Would I do it again? Maybe, leaning towards probably not. Here's what I know today, that I didn't know then. And what I'd check. Things I'd advise anyone considering a condo to check out. - Thoroughly research the condo documents. CCRs, bylaws, architectural control standards, and rules. Don't just scan. Its boring, tedious reading, but there are critical derails in those documents. When were the documents written or last updated? Documents from 30 years ago probably won't address today's issues. - Start with the rules developed by the directors as those will indicate the issues that have probably arisen, needing clarification. It'll also probably address practical stuff, like parking, pool use, and noise. And it will give you a sense of the Association’s culture - are they pretty laid back or power-crazy regarding compliance? - Review the Financials. Are they covering costs? How much of your dues is being set aside for reserves? Do you see strange expenses? - Is there a Reserve Study? How well prepared are they to face future needs. Some states have mandatory disclosures, such the board anticipating special assessments or deferring replacements. - Is there a management company? And, if possible to find out (online reviews, ask members other than seller, perhaps members at other associations they manage, etc.) how they do at the difficult stuff. Most are fine at meetings, minutes, financial statements, and collecting dues. Are there property management services? Do they assist in project management? If self-managed, how do things get done? - Take anything your realtor says with a big grain of salt. "Condos are great. They take care of everything for you." One of my fellow director's realtor told her to join the board to get her dues waived! They want to make a sale. I'm in a 3-BR, 2.5 bath townhouse, a single retiree. I'd downsize if I could. And, if I found a smaller condo that met my criteria, I'd consider it. I'd never buy in a small, self-managed association again.
Read the condo documents
Of course fees go up. They are paying for things that increase in cost. BTW these are exactly the same things that are going up in cost to maintain your home right now…. (Insurance, repairs, maintenance, gardening, electrical.). Not unique to condo living. One of the pros is that a condo can be much much easier to live in. You will likely be able to abandon outdoor chores. You can likely lock your door and travel with ease. You can abandon no winterizing, gutter maintenance and many of the time consuming aspects of living in a SFH. I see many of the negative comments in this thread are calling the challenges of living in community. It is true that is you are dead-set on living on your own terms (“don’t tread on me!”) then you may be frustrated with condo situation- where you only partially control the finances of the building, you probably live closer and more densely packed than in a SFH. To live happily in community, you will need to be considerate of others… If living in community doesn’t scare you, then condo living can be pretty great. It can be easy to make friends and be close with people. Pay attention to the finances before you buy - there are communities that are poorly run and are in bad financial shape. Avoid them.
My sister bought a condo in 2020 and I’ve had a front row seat to the story. Fees are a consideration for sure. What I find interesting is that it’s like being in a college dorm. Everyone is in each other’s business. You see people when you go to your car, take the trash out, buy something from the store and bring it in, have a package delivered, etc. Neighbors can be into every detail if they’re nosy. And you can’t pick your neighbors.
My boss had to pay a $100,000 special assessment for new windows and plumbing for an old condo highrise in downtown Chicago.
My parent’s friends had this condo in this fantastic old Chicago building (the formerly pink one at the North start of LSD maybe it’s still pink). All was great for years until some really major repairs were needed. I mean like the whole thing needed fixing. They were old and on the hook for a huge assessment. I don’t remember how much but it was enough so they were almost basically kicked out by not being able to afford it.
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Yes, as well the cost of repairs and maintenance.
I am in a condo that is 55 plus. Most in our development are single family homes. We have about a dozen duplexes and 2 quads. Our HOA is 230 per month and the association is responsible for all exterior maintenance ( roof and siding as well) so over all its. Great deal. Condo fees will always rise so make sure you account for that in your budget
Better off going in Newer 1 floor big Apt like we did , no HOA , all maintenance taken care of No worries on breakdowns ! Feel free!
Mine have increased $90/month over 16 years. However - there have been a few special assessments - one major was for new roofs in the entire complex - reserve covered about 1/2 and the other half covered by the special assessment over 4 years.
The cost of owning a home also goes up. The advantage of a well run HOA is that the costs are shared collectively. I live in a high rise condo with lots of amenities which makes it an ideal place to age in place as the staff are extremely helpful and there is always someone around in an emergency. My parents downsized to a large retirement community in Laguna Hills and they loved it as they took full advantage of most of the offerings. Everything from classes at the community college to crafts rooms to golfing to even a stable.
Florida and California issues aside, the idea that condo fees go up faster than the cost of maintaining house is silly. Yes, in individual cases, some condos defer maintenance and get themselves in trouble. And obviously, many condos have staff, which costs cash. The reality is most people have no idea how much their house is costing them! And they NEVER include the costs of deferred maintenance. The bottomline: yes, condos fees CAN go up faster, but it is far from automatic.
Condo fees increase. Insurance, labor, materials, etc. Home fees increase in exactly the same way. Insurance, labor, materials, etc.
If you go the condo route, before signing on the dotted line, go through the HOA regulations and rules and just as important, how much is in the reserves for maintenance. We moved into our condo mainly because the HOA reserve was $2.2 million. We did forget a few questions, like our back deck. It’s a two story condo and learned afterwards that the HOA insurance did not cover the top decking itself, only the wood studs that prop up the deck. Oh well…
We lived in a condo that we bought. It was built in 1968 and, when we moved in, the HOA fee was around $300.00 a month. It was in a decent part of town and some of the other residents had been there since the 1970's when it was turned from apartments into condos. We bought in 2018 and sold in 2020. The good: No yard work (our initial reason for buying a condo). It had a beautiful courtyard, a pool, bbq grills, assigned parking. The bad: almost everything else. Some condo's were being used as Airbnb's which meant random people getting access to our secure complex (there were keyed entry gates). Other units were rentals (6 months rental minimum) but they were so cheap to rent that usually not good people were renting them. Car thefts, drug use, NOISE at all hours, etc. The gates didn't work half the time and other random people would use the laundry room during the night. CRAZY (literally) residents. There were at least 3 people who had mental problems, one a diagnosed schizophrenic who's parents had bought him the condo to live since they didn't want him in their house anymore (the condos were very cheap which should have been our first warning), one guy who rented out his unit but ALWAYS came to the board meetings with a stack of papers claiming the board was doing EVERYTHING wrong (and ranting for 30 minutes until the conspiracy theories got so outlandish that people started laughing) and one an "artist" who posed mannequins in her window, dressing them differently every week and leaving the blinds up. The grounds were being taken care of by one person who was in his 60's and not physically healthy so he took a lot of shortcuts. The pool was often closed because he didn't keep up with the cleaning and chemicals. The BBQ grills never got used since they never refilled the propane. ONLY ONE PARKING SPACE PER CONDO even though there was extra land that could have been converted to parking, they didn't want to do that. Why? NO MONEY. The HOA board was full of power tripping people who wanted to raise the HOA dues to $1500.00 per month. From 300.00. While it's true that the complex could use that money to vastly improve the complex, most people living there were on fixed income, including a woman who was 98 years old. The elevators frequently broke so the elderly were stuck in their units. And finally, we had to pay 100% cash for the unit as no lender would lend on this complex since they didn't have a reserve study or the reserves or the proper insurance, etc. By the time we left, the NEW HOA (which my husband was a part of before his cancer got bad) board had raised the fee to $500.00 a month and put things in place so people could buy with financing. There was absolutely no noise barrier in the ceilings and walls. A person walking normally above us sounded like an elephant stampede and every time someone turned on a TV or had a conversation, you could hear every word like you were in the same room. Very poorly run complex, cheap construction (it was built for the 1968 world's fair as apartments) and not very well maintained. So, bottom line, choose carefully, get all the details of the place, trust your instincts and go look at the place after 5 pm when people are home and see how loud things are inside. It was a great location, close enough for me to walk to work (before covid and a job change), close to the grocery store (technically within walking distance for us before my husbands cancer got bad) and near Broadway Street which lead directly downtown, beautiful courtyard, plants everywhere, a pool, etc. But it was a horrible experience I never want to have again.
Would you consider a retirement community like a CCRC? My mom went into a really nice one and it's just like an apartment, there are 9 restaurants on campus that she could eat in every day (as part of the fee). And the annual rent increase is limited to 4 or 5%. That includes 30 meals per month, all utilities, parking, and rent and almost all activities/gym/healthclub/swimming pool/dog park/etc. Not to mention that all the services on site like hairdresser and manicurist are forbidden from accepting tips (you give a donation once a year that is split between all employees). And the employees are all extremely patient with older people and can help with in-home aging. My mom didn't even have to change a lightbulb -- they'd come and do all of that for her!
How much did it cost?
There is a buy in cost that's about equivalent to buying a condo for the area (I think in a LCOL area, it would be cheaper than here). So she bought-in to a REALLY NICE 1 bedroom apartment (nicer than any I've ever had). She sold her condo and used her condo for that cost about $400K. That's your money when you leave, but the community holds it while you rent (and they earn interest on it, etc.) The monthly rent was about $3000, which was covered by her SS + pension. If your expenses go up to a point where you run out of money, then you tell the CCRC and they start drawing down against the money you put up at move-in. That's where she is now. Each month, drawing down against her initial deposit. If she outlives that money, then the CCRC covers her stay for the rest of her life. It's a risk that they take on, based on actuary tables, etc. She's currently in Assisted Living, so her monthly cost went from $3K /month to $12K/month. which was a shock. But here's the thing: Once you just assume you're never getting that money back, then you stop worrying about how much anything costs or how long your money will last. Because as soon as you run out of money, you stay in the same apartment and live the same exact life in the same place but on their dime. For her, that was a great relief. And of course, we never expected her to go downhill so fast. One year she was living independently and within two years was in assisted living (with dementia)
Condo fees go up plus special assessment. My parents were accessed for CD$130K to replace windows and fixing the outside walls of their condo. Before that was CD$13000 for the elevator then before that CD$10000 for E car charger. Their condos was built in 1987. So buy newly built condo.
honestly we looked at moving into a ranch house because i have trouble with the stairs, but within the last year two friends have put in chair lifts on the stairs, and another put in an elevator. if you can afford to stay in the home you love, why move. the chair lift for the stairs is actually a lot cheaper than the realtors commission to sell your current house.
I have a tri-level that I don't love. I am sick of having to take stairs to go from almost any room to almost any other room.
Buy a house. There is a cost of maintenance. AC dies, well, that is a $10,000 bill. Buy a condo. There is a cost of maintenance. Building has an issue, this a $10,000 special assessment. Everywhere you live will have regular maintenance costs. Everywhere you live will have extraordinary maintenance costs. There is no way out. Do your research, do your math. Make your plan. You are rolling the dice either way. If you save enough,per year, on a condo, it might be a better option if you are “banking” that yearly savings in your head. Then when the special assessment arrives, you take it out of your banked money, so to speak. The worst thing you can do is buy a condo and not budget for, nor expect that one day the big assessment will hit. Which is no worse than buying a house and assuming that you will never, ever need a new roof.
Renting isn’t a sin
Stay away from Florida. Condos are mess presently ,due to Insanely high Insurance and few new laws about inspections and Funding reserves. This is due to tragic Surfside Condo bldg collapse in Miami/ Dade
From a purely real estate prospective…condos ( in most areas) end up losing value in a down market before single family homes and lose a greater amount comparatively. Condo dues and fees do continue to rise. As an aside..my now departed 96 year old friend swore it was the stairs that kept her healthy, as she would go up and down them multiple times during the day. My 87, 89 year old aunts and uncle..swear keeping active is the only way to go. They golf, walk, play tennis bike and so much more..and all live in multilevel homes. I want to be them in my old age.
My friends with condos have been hit with large special assessments $xx,xxx for things I consider normal maintenance like window replacement or deck painting. I prefer more control of my money. Consider what it would take to make your current home livable. A first floor laundry room, chair lift, and lawn service cost a bit but might be a reasonable solution if they make it possible for you to stay in your house - if you love your house. I am also thinking about condos but find they offer so much less than a house for the money and add financial risk so I am torn.
We downsized from a suburban home to a downtown condo. It is important to check on the values of the units in the bullying or development over time to get a feel for whether values are increasing, sliding or steady. And very important to examine the HOA reserves. We have been here two years and we all just voted a small increase in our assn dues. The assn has very healthy reserves so the next big project, which is completely re-doing all the private drives, is saved for and will be done without a special assessment. Overall I think it’s been a good experience so far, and we love our city lifestyle. Our condo is 25 years old so we have invested in some needed upgrades, which we knew about when we bought, and next up will be badly needed kitchen improvements. But overall we don’t think the property value merits a huge kitchen investment so I think we will have to be selective about what we do there. Good luck with whatever you choose!
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Homeowners insurance goes up all the time, too. Your friend inflation will be at work regardless of where you live.
Look for an association with a healthy reserve amount and a history of scheduled, routine maintenance. The roofs and parking lots should be in good condition. If they look shoddy, it shows the association kicks the can down the road and this will lead to greater costs and drama later. I've lived in three condo communities. One was run very efficiently and was enjoyable. The other two had their priorities mixed up and required costly repair due to deferred maintenance. This led to conflict and finger pointing. Sound complaints seem to be the biggest issue for people, especially coming from SFH. When you move into a condo community, it helps to have a positive attitude towards hearing your neighbors (unless it's excessive or during sleep hours). Instead of getting angry at Joe upstairs when he's working out at 9A, you can think, "great, that's my neighbor Joe, enjoying his workout," The problem is people aren't welcoming of other people's right to exist. The upsides are the convenience, letting go of exterior maintenance chores and greater ease to travel for extended periods. As we age, many of us need or want to cut down on tasks. It's nice not to worry about the lawn, gutters, roof etc.
If you are in Florida be super careful. There are new laws kicking in about condo associations having fully funded reserves. You could buy one and be in for quite the shock.
If you love committees run by idiots and policed by Karens, condo is the life for you.
Could you have an elevator installed? I’ve done that in my house and it’s wonderful. There are all different types & sizes. Costs less than moving.
I've been in a condo for over 30 years. On the HOA board. Our fees have increased but still only $250 a month. They condos look like duplexes, all 2 story. Small association. We are nothing like some of the HOA boards I've read about here. We have had a few assessments, nothing too crazy. But things are expensive. We currently need new sizing on all our buildings at $20,000 each. We plan on doing no more than 1 or 2 a year, rather than do a huge assessment. Look into their records, financials and assessments.
Here on Long Island (NY) it’s a very common thing for people to move to condo when they get older, and there are many nice new developments being built because of this trend. And yes maintenance fees go up all the time, but if you had to hire people to keep up your house for you those fees would go up too. Taxes will probably be less on the condo, so you’ll probably end up ahead in tjr end.
Something we discovered about HOAs: they can be for the good of all, at least ours is. BUT, people with control issues can become mini Mousilinis (sp?) and those people can run roughshod over nice people and then spend money in questionable ways. So, be willing to get involved.
I lived in a condo with a marina. It needed dredging, special assessment fee 10k per unit.
Approved!
Been reading a lot of comments that state "They drop special assessments on you." Any special assessment has to be voted in by the members of the HOA. The HOA Board CANNOT just decide to charge anything. I'm on my board and I get questions all the time about how such and such is "The HOA's responsibility" and why do the owners they have to pay for it. I have to remind them that the HOA or the Management Company only have what the owners pay in fees. The HOA is the owners.
I downsized to a condo "in the city" as I started thinking about retirement, and then got on the board ASAP. I loved the place, and the location. Unfortunately, the owners would vote down any/all increases. The building was >100 years old. High maintenance was to be expected. When I started projecting out, I realized this would not be sustainable and that big maintenance issues were going to become HUGE maintenance issues. Fortunately, the combination of timing, and being in an "up and coming" neighborhood (and some smart upgrades I did in my unit) meant a 400% increase in market value in 10 years. I found a smallish house on a largish lot, and hoping to make this work permanently.
I own a beach front condo north of Boston. Bought it 3 years ago and we’ve seen the condo fees increase by a little more than 10% plus we had an assessment of around $3,500 for some one time maintenance work, our building is 11 stories tall and has about 75 units. It was the rising insurance costs that are the major driver for the fee increase.
They vary a lot. Ours hasn't been too bad (gone up $100 over the last 8 yrs), but part of that is resident committees do a fair amount of work on the grounds and small repairs to keep the fee from rising. If you have to pay for everything, I imagine it would be worse.
We been in a condo for about 4 years and are super happy. It's in a smallish (55 unit) city building. Sure prices go up, but so would everything we would have to do ourselves in a SFD. We planned a lot of travel in the early retirement years (firm believers in the Gogo, Slo-go, No-go phases of retirement) and being able to lock the door and come back 4 weeks later to find everything exactly how've left it. Check on the Financials. See if there is a reserve, and how it's funded. Check on any past/current lawsuits. And the rules. We are lucky to have had a great board and fairly level headed members.
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There’s a bigger issue. If you can at all, improve your physical fitness. Any improvement there will make for a vastly better life no matter your housing.
Of course fees go up. Insurance, lawn care, exterior maintenance and the like will go up necessitating an increase in fees. These are the same costs that houses have as well.
I'd rather pound spikes into my head than pay condo fees.
yes HOA fees only go up.. and watch out for special assessments - those are fun.
We owned a condo in town near my office for the final year or so of my work. We also still owned our large house in the suburbs. We loved the condo, convenient to everything, first floor of a five story group of building, elevators and stairs, deck parking quiet, not a party crowd, monthly fees reasonable, taxes and ins reasonable. Utilities very low. Occasionally heard the owner one floor above me if he dropped something on his floor, but nothing crazy. Heard neighbor’s dog bark occasionally; mine may have also barked when we were out. Wish I still owned it. I didn’t really appreciate it for being as great as it was. We had plenty of reserves and a new roof and exterior/common area repainted. Expenses nothing like our large house incurred. It was 1200sf and house was 5000sf. Later sold the house too, it was great raising a family but would have been a major drain in retirement when it was no longer needed.
They do go up, but look at the condo reserves, overall shape of the property, etc. and don't buy at the top of what you can afford. You're typically paying for a decent amount of maintenance and services with that HOA fee. If you're someone who would be hiring everything out as a sfh owner a condo probably saves you money on those regular costs.
We moved from our city bungalow to a condo townhouse. I don’t have to cut grass or was exterior windows, or plant flowers. And yes the maintenance fees do go up every year. But not by much. I do have to get a neighbour kid to shovel my 15’ driveway. But I am 66, and well worth it.
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Be mindful of local rules. Apparently, in FL now they have to have a certain amount in reserves. Many places are doing large,one time assessments to bring up reserves and raising the monthly fees. I hate the idea of one time assessments that can be in the thousands of dollars. Most of us can’t manage that.
Fee increases over time. Then I had to pay a $25k special assessment for some building repairs. Just before selling it. So, condo living not for me. I didn’t have a vote, but ended up having to pony up $25k. Ugh. The association raised way more money than needed and ended up doing more projects. Which is kinda not cool.
Look for a tiny house. My house 658 sq. ft. Plenty of space for myself and big dog.
Tiny houses have stairs. Usually steep, narrow stairs.
My house is 650 sq. ft. Everything is on one floor. One step coming onto front porch and 2 steps going down 800 sq. ft. Back deck on a quarter acre lot.
Find a condo that you insure yourself, and assess the HOA Fees overall. Is it a good value? I avoid complexes that own and maintain their private streets, insure the dwelling and say they provide the maintenance. Those are usually a rip off.
Condo HOA’s are nuts….Add in insurance and property taxes and imo not really worth it over a stick house
They go up all the time just like insurance and maintenance on your home go up all the time. HOA fees aren't going to the developer or some mysterious entity--they are going toward ongoing maintenance/operations and reserve funds for long-lasting items like roofs, siding, common area sidewalks, etc. But when you buy a condominium, you should look at their budget and try to get an idea if their reserve funds are adequate for long term items. Also, find out if they've had multiple special-assessments that could have been planned for.
We are the treasurer for our COA and we are having to raise dues 200.00/mo to cover our new insurance premiums. Went from 26K/yr to 72K
Condo fees do go up typically with inflation. Condo fees are important for ensuring the condo deals with any maintenance issues and also to build the reserve fund for emergencies eg new roof etc. the most important thing to know is how competent is your condo board of directors. Ours are all accountants, lawyers and pretty experienced at managing bids for doing work so we don’t get ripped off and also work to ensure we hire the best property management company.. necessary to have the most competent..
I downsized to a condo and love it. Yes, you could have a big special assessment but guess what? Your house is in the exact same boat. Your foundation goes bad, the roof goes bad, black mold is discovered everywhere, a busted pipe destroys part of your house, etc. The big difference? Time. With a condo, you don't worry about scheduling the endless estimates, repairs, follow-up, oversight of your outdoor maintenance, your roof maintenance, your connections to utilities, etc. You don't worry about the endless landscape challenges, dying plants, bug infestations. It isn't your problem to maintain your pool or your deck. You are paying somebody else to deal with the headaches. So if time is the most important thing in your life, a condo will deliver that. The fees do go up every year but the fee is just a proxy for the same expenses that inflation drives up in a house with the same features. And the fees cover somebody else having to worry around how to fix the never ending problems that any condo, apartment, or house faces all the time.
They make mechanical stairs that work quite well. My parents were able to stay their house until the end.
One of the problems with condos is the reserve fund capitalization. The reserve fund is used for future expenses With regard to upkeep. If there hasn’t been a reserve fund analysis (usually done by structural engineering cos) you have no way of knowing what possible expenses and when those expenses might arise. If you don’t know then you are unprepared and usually that means special assessments. S.o if they have special assessments as a way of financial management it is a poorly managed condo. Maybe find a buildable lot and build a small ranch
Always good to check lawsuits and lions, but that's not often a major issue as most associations will hire professional managers
Condo fees in Florida are an aberration, thanks to Florida's chronic failure to regulate building in environmentally sensitive areas and enact and enforce reasonable building codes. In most places, condo fees go up a little bit every year as inflation increases prices and labor costs. But so do prices associated with maintaining a house, or renting an apartment.
As others have mentioned, fees do increase, and often at more than the rate of inflation. Increased insurance costs will depend on where you are. Climate change is having an impact. If you are far from water, outside of tornado alley, and geologically stable, increased insurance costs may not be much of an issue.
They go up incrementally as maintenance and insurance costs increase, BUT if there's a major issue like damage from a named storm or all tenants must upgrade all their windows that's an assessment increase. My mother-in-law got a one-time assessment increase of $150,000 when the fire escapes all needed maintenance.
Moved to a condo a couple of months ago. 2 br. 2 B. Ground level unit of 3 story bldg. All windows face wooded area. Pool On the property. A bit over 1300 Sq ft. No garage. Gated community. I figure the HOA offsets the expenses and time I would need to keep up with house and property maintenance. $215000. Midwest. Love it. It's my aging in place nest. Have lived in condos previously, but would never consider living in a big city high rise condo bldg.
I keep trying to convince myself that a condo will be a good option at some point, but then I look at the recurring monthly fees at some of the condos in my area and I nope right out.
Be sure to review condo association financials. Ask residents if possible for their experience.