Moving to Miami? When to consider a condo vs. single family home
Buying a condo vs buying a single family home may seem like an odd comparison. But there’s plenty of comparisons that can be made, from what you’d be buying to the application process. So what exactly are the differences? And should you buy a condo vs. a single family home? Read on below.
What’s a condo?
A condominium, or “condo” for short, is a privately owned individual unit within a community of units. The owner of a unit typically owns the interior of that unit and some exterior elements. Common & shared areas such as pools, garages, gyms, hallways, etc. are owned collectively by the condo owners. Condos can be found in high-rises, apartment-style complexes and even (surprisingly to most) detached structures similar to single-family style homes.
Difference between a condo and a house
When you own a condo, you own a single unit within a community of units that’s overseen by a condo association. The association assesses things like monthly fees, maintenance of commonly owned areas, insurance for the property besides your unit and other shared expenses.
Owning a single family home, on the other hand, includes the property and usually the land the property sits on. Some neighborhoods feature Homeowners Associations (HOAs) that can operate like a condo association (management of common areas for example). But unlike condo associations, you don’t need an HOAs approval to sell your home.
Maintenance
A key difference between a condo and a single family home is that maintenance for condos is typically handled by the condo association. This maintenance can include gas, electric, plumbing, HVAC, paving, lawn care and more. For single family homes, you’d be overseeing property maintenance yourself. When considering which property to purchase, think about the level of property maintenance you’d like to have and what you can work with before making any decisions.
Application process
One major difference between buying a condo vs buying a single family home is the application process. Since a condo is managed by the condo association, they cover maintenance on the various units. During the application process you should ask about the financial health of the association, since this can impact your ability to pay back a loan. As such, condos are seen as higher financial risks than single family homes would be. Be warned, this process can take up to 30 days and include an in-person or virtual interview before you are approved.
Unexpected Expenses
When you purchase a single-family home, part of the process includes hiring an inspector to do an in-depth inspection of the property to confirm that everything is in working order (and what it will cost to fix things that are not). We recommend doing inspections before purchasing a condo as well, but that inspection will focus on the unit itself and not the building it resides in.
It’s important to analyze the financial statements of the condo association going back a few years to see the financial shape the building is in and how maintenance has been handled. This will help you ensure that there will be no unexpected expenses cropping up in the next few years after you purchase the property. Financial reserves are crucial in a condo.
The Kern Team
Moving to Miami is the start to a great new chapter in your life. Part of the journey is finding the right property. Whether it’s a condo or a single family home, the Kern Team is ready to help you find that perfect property. Give us a call and start your chapter today.
