Condo Vs. House: What to Consider?

I bought my first home when I was 25 as a single woman. I knew as soon as I was going through my real estate course that buying made sense for me financially and I was going to prioritize making it happen. I saved up for my down payment for 12 months and then started considering properties in Cincinnati and Northern Kentucky. Ultimately, I opted for a condo. I knew safety was my top priority. I would possibly be living alone. I didn’t have a pet. I knew wanted access to highways, and I knew that I didn’t want to live in the suburbs. I also considered how busy I was. I knew that a huge renovation project was above my head, so I needed something move-in ready. I didn’t want a yard because on nights and weekends you will find me showing houses, not pushing a lawnmower. Thus, it was a simple choice, I knew it was going to be a condo.

I set myself up a showing at a place in Walnut Hills, a small area wedged right in between downtown Cincinnati and Hyde Park. The area is urban with a perfect mix of new businesses and old. I knew the area well because I attended high school at Saint Ursula Academy, which is right in the center of Walnut Hills on East McMillan. I purchased the first place I toured. This isn’t a typical buying process for most, but I am great at making decisions and sticking by them. Being a realtor I have the perk of already viewing a lot of different homes, in different areas, and different price ranges all over Cincinnati and Northern Kentucky. Right off the bat I knew what I wanted and how to get it. For anyone that does not have these insights in their back pocket, I have you covered. Here’s what to consider when deciding between a condo and a house.

Are Condos Cheaper than Houses?

Resale

Condo: Condos are tougher to re-sell. Why? There are fewer people looking for a condo versus those that are looking for a house. People prefer houses because they usually want a yard and a lot more square footage. Usually, there are more families or couples looking to buy a home. There is a double-edged sword when buying a condo. The plus is that when you are purchasing you can probably find a beautiful place that has been sitting on the market for 30+ days. You can attempt to get that price down, throw in some closing costs, or even a home warranty. Con, you are probably not going to be able to sell your place for the price you paid in the short run. The re-sale value is not there. The way that you can combat that is by renting it to cover the mortgage when you move. Keep it for 10 years then re-sell it.
Residential Home: The resale value of a home can be great. You have a better chance of increasing your ROI if you buy a house in an area that is changing and developing. Generally, the resale value is even better if you are handy and you re-do a bathroom or two, update the kitchen, and throw on some new paint - you could certainly realize a nice profit. More people want houses. That is just the way it is.

Safety

Condo: I’ll start by saying I listen to true crime podcasts daily. I knew living in a house by myself wouldn’t work for me, there are too many entryways and a lot of ground-floor windows. I chose a condo because there’s a gate for where I park my car, a gate surrounding my building, and two doors with codes between my front door. You have to get through four or five entryways just to access the building. On top of that, I chose a place that was on the fourth floor and the opposite side of the elevator. Annoying to get to? Probably. Perfect for me and my irrational fear of getting kidnapped? Yup.
Residential Home: Homes can be equally as safe. There are security systems that you can purchase, and you can replace old locks. You can also get a place with a garage entrance so you never have to be outside by yourself at all. There are plenty of ways you can make sure your place is secure and that you feel safe and sound.

Location

Condo: In my opinion, condos give you more access to central areas especially in business districts. This could be a pro or a con depending on the person. As a young real estate agent driving across the city on any given day, this was a huge plus.
Residential Home: When you are picking a house in a residential area, you only have what is available on the market, which can limit your options location-wise. If you’re wanting to live in a more popular suburban area, then the houses might be close together and the yard a little smaller. If you don’t want to be able to see your neighbors, you are limited by location because you need to go further away from the city.

HOA

Condo: Most condos have a Homeowner’s Association (HOA). This is essentially a board that takes care of the common areas. It’s a monthly payment that does not contribute to your principal payment. It’s a sunk cost, like rent. When it’s gone, it’s gone. A cheap HOA is about $3,000 a year. But if you had a large yard that you have to take care, don't be surprised if it costs as much as a yearly HOA fee.
Residential Home: Your monthly payments are probably going to be cheaper if you are buying a residential home versus a condo because of that HOA. You can contribute more to your principal each month, which can potentially shorten paying off your property sooner. This can save you money on interest. Often times, residential homes are arguably the better financial decision.

Home Maintenance

Condo: You will have to deal with some home maintenance for a condo. If the roof is damaged, you won’t have to call a roofer, but you will get slapped with your percentage of the bill that you pay through a one-time increase in your HOA. All the interior maintenance is your responsibility as well. What’s nice is you don’t ever have to worry about your landscaping. I enjoy walking through the courtyard each morning without ever having to push a mower.
Residential Home: There are going to be more home maintenance projects as a residential homeowner - if not for the sheer fact that you probably own more square footage. Make sure you check out the other blog I wrote on monthly, yearly, and weekly home maintenance projects you should be aware of here in the Career Corner.

Amenities

Condo: If you are younger or older amenities might be something you are looking for. What do both of these groups of people have in common? They usually don’t have young children. Therefore, when looking to buy a place, they can justify prioritizing a nice pool with a view or a gym within walking distance. They might want a lobby with a coffee maker or a person who sits at security every night.
Residential Home: The amenities of someone looking for a home could be “yard space” or “big closets.” It just depends on what your current needs and wants are. Any additional amenities you would like in your home you are paying out of pocket, no HOA here.

Parking

Condo: Condominium parking can be a headache. I have a situation where I live with someone, but we only have one spot in the gated parking area. Cars can get broken into a lot on the street.
Residential Home: Parking situations can range with each house. Houses can come with or without driveways or with or without garages. Decide what you want to prioritize and go for what suits you and your family's needs.

Pets

Condo: If you are not on the first floor of your condo, having a pet can be a pain. People do it, but they are walking up and downstairs and around the block at weird hours. They don’t have a yard where they can just let the pup run out the back. They are constantly forced to keep their dog on a leash if it’s not in their residence. Some HOAs do not allow pets at all.
Residential Home: Great for dogs. I think you can see why.

Should I invest in a condo or a house?

Either way, there is not a right and wrong decision because it’s based on what stage you are in your life. Do you need more space and accessibility? Would you freak out if you had to climb four sets of stairs to bring up groceries? Are you fine with not having a dog right now? These are things you should ask yourself when choosing between a condo and a house. I chose a condo because I knew safety and location was my priority and I also didn’t want a lot of space. A woman in the same position might prefer a house. Make sure you do your homework and ask your realtor all the right questions. Good luck and happy hunting!

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