When Is a House Less Expensive Than a Condo?

The majority of people make the broad-spectrum assumption that a condominium is almost always less expensive than a single family home in the same neighborhood. This is a rather short-sighted assumption as it takes only one factor in to account – the purchase price. There are many other expenses to consider.

 

Buyers seem to live and breathe their budget, and who can blame them. Purchasing a property is typically the largest financial transaction any person will make in their lifetime. Buyers usually know what they are comfortable with spending as the purchase price; however, that purchase price is only one factor in a larger equation.

 

Here is a great example that will let us compare 2 properties and the “real” cost of owning them.

 

1221 Stonecutter Drive #7214 Celebration, FL 34747 – listed for $287,950

3 bedroom 3 bathroom (1854 square feet) condominium located on the 2nd floor of an elevator building in Celebration. It also includes a 1 car garage.

 

1020 Nash Drive – listed at $374,900

 

3 bedroom 2 & 1/2 bathroom single family home in Celebration with a first floor master bedroom and 2 car garage.

 

 

At first glance, you would assume that the property with the almost $90,000 lower list price would obviously be less expensive to own, but that is not the case. So in this instance, the property with the higher purchase price is actually less expensive on a monthly basis. Without having the large condo fee, the potential buyer has much more monthly budget that could be put towards their purchasing power instead of condo fees. Plus a single family home is typically a better long term investment. The condo fees can scare off potential buyers down the road or make the property too expensive for their budget. It is important to assess monthly budgets and carrying costs as well as the purchase price. This is where our expertise can help you.

 

If you are in the market to buy, please contact us so we can help you get the most value for your budget.