Why don't more people consider buying and living in condos? (Jacksonville: for sale, oceanfront)

[Wordsmith12]

And I mean buying them to make them their primary residence, not to sell/rent them out immediately.

My wife and I bought a 2/2 unit in the Kendall area and have been living there comfortably for over 3 years now. (The only downside has been the traffic, but we enjoy being in close proximity to so many restaurants.)

It works for us because we plan to have a small family (1 kid), we're both low maintenance, and we knew we wanted to minimize upkeep. Not saying we wouldn't consider looking at houses and townhouses further down the line, but we're both happy where we're at now.

Given the inventory shortage and ridiculous prices homebuyers are faced with in South Florida, why don't more of them consider living in a condo at least a few years? That way, you'll at least be building equity.

I also recognize some couples may intend to have several kids and thus desire more space, but there are plenty of 3/2 units that afford generous space (1200-1500 sq ft).

Seems like you're probably more likely to find a reasonably-priced condo in a desirable area (e.g., Coral Gables, South Miami, Brickell, The Grove) than you are an affordable house.

Correct me if I'm wrong, but isn't this the only option middle class buyers have in places like New York and Boston? It feels as though houses are becoming too expensive for most people in Miami, which is also the case in the Northeast.

It seems most people would rather buy a house in Homestead or another less desirable area than a decent condo closer to, say, downtown Miami or Westchester.

I would imagine some people are adamant about having a yard and not sharing walls with someone else, even if they knew they'd have quiet neighbors. And I know some HOAs can be a pain, but they also take care of a lot of stuff you'd have to tend to on your own with a SFH.

[elchevere]

Some people like having a backyard, some don’t like having strict regulations at some buildings, some don’t like being forced to valet in some buildings or dealing with elevators, and some would rather put $800 / 1000, and higher HOA’s into their home....I’m not a green thumb, not a handyman, and am single so a condo makes sense for me but not others.

[oronzous]

I grew up in a 4/3 condo and we were not rich. How many bazillions would be a 4/3 condo in Miami today?

[Eeko156]

Because HOA's can go up at any time for any amount, special assessments can easily rack up, and the resale on condos is not as high as a SFH. Also, too many rules, no yard, etc.

I am not even sure condo ownership would beat renting.

[janet bubby]

Shared walls. When I think of the bad neighbors I've shared walls with through the years, it's really unappealing to think of a situation where they were also owners and therefore I'm stuck with them indefinitely. We get clunkers here sometimes but if they can't get themselves under control, the landlord evicts.

[Marc Middleton]

Originally Posted by janet bubby

Shared walls.

Despite the reasons above from some people, this one above is usually number 1.

Also, you can buy a house with 3.5% or 5% down. Most condos require 15%-20% down so the barriers to entry are worse for buyers. Unless you find a super solid building with not many renters and a good reserve balance, then you can get in for 5% down conventional.

Most people think its HOA fees, but really those aren't that bad and not often the reason. If you can get a 'no-frills' building, your HOA fees on a 2/2 might only be $300-$400/mo, and that includes your water, sewer, trash, most of your insurance, and sometimes even basic cable. Compare that to a house where your insurance policy is $2200-$3000/year (about $200/mo) then $75/mo for water/sewer and then trash billed separately, plus higher cost of utilities and then yard maintenance.

[MadManofBethesda]

Originally Posted by Eeko156

Because HOA's can go up at any time for any amount, special assessments can easily rack up, and the resale on condos is not as high as a SFH...

They can't go up at any time for any amount. The bylaws usually spell out how and when the fees can be increased by the Board. If they want or need to raise them higher than the stated amount, the Board needs to go to the unit owners for approval. Similarly, special assessments must be voted on and approved by the unit owners.

Originally Posted by Eeko156

I am not even sure condo ownership would beat renting.

Depends. My oceanfront condo has increased in value over $200k since I bought it 5+ years ago. If I had been renting the unit during that time (and rents are actually higher than my mortgage + HOA fee), that appreciation would belong to my landlord.

[Hammocks Bum]

We own a Condo and a Townhome in Seminole County, both occupied by our 2 daughters, just under 2 blocks away from each other, one has a Casselberry address, the other a Winter Springs one.

Originaly bought the small Condo as a get away place from Miami and also for family members to use, from Pinellas County.

We always thought the Condo would be great for the wife and I when old and retired...but Mother in Law lives with us, 93 and on Paliative Care.

So life goes on and we just wait and see what tomorrow may bring...One thing for sure is that the Condo remains a choice, but never the Townhome....Up and down the place is for the birds. The day the older daughter moves out from that place ON goes the For Sale Sign in under 24 hrs.

We love the area where the units are located, but traffic, just like the Miami Suburbs at Rush Hrs, IMPOSSIBLE.

It's a Florida Thang with Traffic, all Areas Related to The entire Keys, S Fla, SW Fla, WPB, Orlando and Daytona Bch, Tampa Bay, Ocala and Gainesville, Jacksonville, even Tallahassee...AT Rush Hr you better go hide somewhere while that happens during the Day.

[Wordsmith12]

Originally Posted by Marc Middleton

Also, you can buy a house with 3.5% or 5% down. Most condos require 15%-20% down so the barriers to entry are worse for buyers.

This is a good point. I did have to put down more money for mine.

There seems to be a perception that only two kinds of people buy condos: (1) retirees (2) Unless it's a luxury condo in the Brickell area or on the beach, people who can't afford a house.

We could have opted for a house, but I felt a condo was the right choice for us because we're low maintenance. (I'm the farthest thing from a handyman and didn't want to worry about mowing grass, roofing, etc. My wife, for her part, hated gardening.) I also wanted a pool and a balcony.

As someone mentioned, while the HOA fee isn't cheap ($400), it includes garbage, water, pool, security, etc.

And by owning a condo, we save a lot in taxes and insurance compared to those who own a house.

[Marc Middleton]

Originally Posted by Wordsmith12

As someone mentioned, while the HOA fee isn't cheap ($400), it includes garbage, water, pool, security, etc.

And by owning a condo, we save a lot in taxes and insurance compared to those who own a house.

Exactly. As a R.E Broker, its a common perception that I deal with constantly. They think the HOA fees are pure 'money wasted', but how much is water ,sewer, trash , yard maintenance, and your annual homeowners vs condo insurance? If you buy the right place, you can sometimes come out ahead with your HOA fees or maybe $100/mo in 'wasted' money. Not bad for having much less maintenance. of course if you are a growing family, there is no yard or garage so that's a problem. But for a lot of people ,its a great option that often gets overlooked.

But again, once you overcome these objections, it still comes down to 'living in a building/sharing a wall' vs space to stretch out/keep to yourself.

Also, if you travel a lot, condos are way better. You don't have to keep your house 'buttoned up' constantly while worrying people are figuring out your schedule and breaking in.