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Re: Condo verses single family house Posted by MI-Roger [Email] (#882) [Profile/Gallery] (more from MI-Roger) on Sun, 1 Dec 2013 15:53:10 In Reply to: Condo verses single family house, No Snaab, Sun, 1 Dec 2013 15:24:08 Members do not see ads below this line. - Help Keep This Site Online - Signup |
We were looking at this to help my sister-in-law find lower cost housing than apartment complexes. Apartment developments are at near all time high occupancy rates which translate into high monthly rents. What I didn't realize until I was schooled by the Mortgage Broker was that the monthly Condo Fees do not include the real estate taxes. You have to pay your monthly mortgage, your monthly association fees (usually in the hundreds of dollars per month) AND the real estate taxes which are also hundreds of dollars per month!
In our case this Condo would have been a "second home" for my wife and I which we would have been renting to my sister-in-law at near cost. The second home status means Michigan real estate taxes are higher than on a primary residence - potentially much higher.
The Mortgage Broker said that Condos are not a low cost property choice as many falsely believe, the association fees are actually a high cost means of having someone else arrange for your lawn care and snow removal. He said a potential purchaser could save a lot of money by buying a single family home and hiring all their own maintenance services.
I read your post a second time and question your Realtor's opinion as to required down payment amounts. What we were told (but then, whose advisor is correct?) is that higher down payment amounts are required for investment property, but a second home can be financed at standard down payment amounts. The dividing line between second home and investment property is gray at best but since I think your present employment situation includes free housing, any purchase should be considered as a primary home or second home and not investment property.
Ask lots of questions and contemplate the responses before making your decision.
->Posting last edited on Sun, 1 Dec 2013 16:12:11.
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
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