Single Family vs. Condo: Which is best?

Hey, everybody, this is Dan back with another video. Thanks for tuning in, where today I'll be explaining some of the things that you should consider when thinking about whether you're going to purchase a single-family home versus a condo.

Financing: Usually More Options for a Single Family

Now of course, since I'm a mortgage lender, I'm going to start off by comparing some of the financing options that are available for purchasing either a single-family home or a condo. Now, in general, most loan programs will have an opportunity to be used for either type of home. However, it is typically easier to use conventional financing when purchasing a condo compared to some of the government programs such as FHA and VA, as those types of programs for FHA and VA state that the condo association itself has to be proved with that type of program. And if it's not at the time that you're making the offer, that's something that could cause delays in the closing as it has to be determined whether the association is able to be approved with FHA or VA, whereas with conventional financing, yes, we still have to get some information from the association themselves to make sure that they have everything in order. But in general, it's a lot more common to see conventional financing when purchasing a condo. And with single family homes, it's a little bit more flexible and the programs established may be more easily available for purchasing a single-family home as you don't have to meet those other standards with the association.

Cost & Maintenance: Condo Convenience

Now, the next topics I'd like to cover is cost and maintenance of the properties. In general, you may find a lower purchase price of condos compared to other single-family homes of similar size and in similar location. Now when purchasing a condo, you're going to be able to look up and see how much the association dues are per month for that condo. And those association dues are typically going to cover things like your master insurance policy, snow removal, yard maintenance like cutting the grass, and also landscaping. And so you can budget easier with the condo for those items compared to if you own your own home, you have to have the upfront expense of purchasing the equipment, the lawnmower, the snowblower shovels, other tools that you need for landscaping and things like that. So you have more control over those, but you have to also spend your time doing them. And those costs could fluctuate depending on what you really need to get those jobs done and also the replacement of any of those pieces of equipment that you need to maintain the property yourself. Or again, with a condo, things like that are typically included in the HOA dues, but you'll want to make sure and ask those questions before purchasing a condo so that you know exactly what is included in your monthly association dues.

Space: Single Family Privacy

The next item to compare is space. Typically, with a condo, you may have some shared walls, maybe a little bit less square footage, and a little bit less privacy with the neighbors being very close to you. And if you're a social person, that might not be a big issue for you. Whereas with a single-family home, typically you might have a little bit more area inside and outside of the home where you have your own yard and maybe even room for expansion that you don't have to abide by the Hoa bylaws in order to do other things to your property. And with the condo, you might have to run it past that association to get approved first.

Amenities: Going To a Pool

Now, one area where condos typically have the upper hand is with the amenities. A lot of condo associations might have things like gyms, pools, or common spaces that you can rent out and enjoy included in your condo association dues that are all maintained and available for you, whereas with a single-family home, all those types of amenities are private, and they are up to you to put in and maintain.

Location, Location, Location: Urban vs. Suburban Life

The next thing to consider is location, whereas condos are typically located in more urban areas, giving you access to things like public transportation, entertainment and close to maybe where you're going to be working at. It is ideal for people that like to live closer to the city, whereas with single family homes those might be more so located in rural or suburban areas which offer you a little bit more privacy, might be a little bit longer commute to get to where you want to go. But if you enjoy a little bit more peace and quiet, single-family homes may be preferable for you.

Rules & Restrictions: Association & HOA

Now, when discussing rules and restrictions comparing condos and single-family homes, you'll typically find that condos will have some more limitations, that if you'd like to do anything to your property, there are certain things that you have to run by that association first, and certain things that you just in general might not be allowed to do. And with a single family home, typically you're going to have some more flexibility for what you'd like to do to your home. Although I will say with single family homes, you still may be located in an hoa yourself. So if that's the case, you still have to follow those rules and guidelines. But in general, you're going to have more flexibility doing what you want to do to your house if you have a single-family home.

Lifestyle: What works best for you?

And now I'd like to touch on the lifestyle compared to living in a condo and a single-family home. Whereas living in a condo might be great if you're a single person, you're a couple or have a small family and you enjoy that urban type of lifestyle. Whereas if you have a little bit bigger family and you value your space and being outdoors, then a single-family home might be preferable for you.

Conclusion

So, in general, if you prioritize convenience and low maintenance, a condo is likely going to be the best for you. Whereas if you value privacy and more space, then single-family home is probably your choice. And just besides these, there's many different factors that will go into you making this decision. Even thinking about the future. Things like if you plan to start a family or expand your family, or if you think whatever you do for work that you might be able to work from home in the future and maybe that privacy then would be more important to you. All things to try and consider, and I know we can't know all the answers, but I really do hope that this video was helpful for you. If you enjoyed it, please let me know. Is there anything else that you think that I missed? I'd really love to hear from you all. I enjoy doing these so I will be back with another video again really soon. Thanks again for stopping by. Hope you all have a great day.