If I buy a condo in a building, will I be paying insurance, taxes and maintenance, utilities etc.?
September 16, 2009 by Builder Wong
Filed under Maintenance & Repairs
Even though, it’s usually a condo, not a total building? And similar to how much, compared to profitable for singular family houses or multi.
What you are responsible for paying varies from building to building.
In my complex, the Homeowners Association maintains the outside of the units and common areas, water, sewer, garbage. For this, we pay a monthly fee of $297. While the HOA has insurance to cover what they are responsible for, any insurance to cover the inside is the responsibility of the owner. Property taxes are also the responsibility of the owner-as are gas, electric, phone and cable.
To compare the two-I believe that there is a trade-off. A condo is less up keep to you personally since you only need to maintain the inside. For a fee, the outside is taken care of your you. There is probably less privacy in a condo, since your neighbors often share common walls.
While if you own a house, you must maintain all aspects both inside and out. The costs of which come solely out of your pocket. There is usually more privacy, since there is usually open space between houses and yards, etc.
Taxes and utilities are usually less in a condo because they are smaller and cost less to heat and build. But condo’s historically do not gain appreciation as quickly as a single family home.
if you are in a tradional building (like a converted old apt complex) then you will most likely pay a fixed rate per month to cover heat, garbage, water & sewer. The monthly amount varies – I’ve seen it as high as $300 or better. In my brain – a single family is better – you pay less for utilities all the way around (put em all on budget helper)
You pay an assessment, which is a fee based on your percentage of ownership. This keeps the building hallway lights on, sewer, garbage pickup, etc. You pay all the bills for the inside of the unit. Sometimes basic cable TV is included in the assessment. The charges would be the same as an apartment of the same size.
Most condos have active homeowners associations. You pay them a maintenance fee that covers trash, common maintenance (usually roofs are covered, but not always), and groundskeeping.
You are still required to pay homeowners insurance, flood insurance possibly, electricity, water, taxes and other maintenance. The association may take care of the roof, but if your dishwasher or water heater goes out, you are replacing it.
Condos vs single family homes can often run about the same amount, depending on size and other fees. But condos can be less headache in terms of having to keep up with yard work and replacing the roof. Your taxes are typically less because of less square footage. Electricity is usually lower because it’s a smaller unit and your surrounding units also help keep yours cooler.
You may end up paying more, or you could save alot of money. It varies and you should look at all the costs before you buy anything.
Generally, the condo association’s insurance will cover the structure of the building, and whatever’s INSIDE the walls- plumbing, etc. The condo association’s insurance will also cover the outside walls (the ones exposed to the elements) and the common areas. Inside the actual apartment is all your responsibility- fire, theft, homeowner’s insurances, etc.
Taxes would be paid as if you owned a house… you own the condo. Utilities are usually all your responsibility, unless the condo covers utilities, and usually that’s just heat and hot water. Electricity, phone, TV, that’s all you.
Maintenance fees are also separate, and usually paid separately of the mortgage. Also, if there’s any major repairs to be done to another building within your complex, you (and the other members of the association) could get hit with a "special assessment" where everyone kicks in money for the capital repairs of the condo complex.