Archive for March, 2010

I wanted to take time this evening to go over a very common question I’ve been receiving from clients as of late. When people are looking in the condo market they ask what are the taxes? what is the condo fee? I answer with the typical $250-300 answer and this causes the buyer to reel back in horror as they think about they’re monthly expenses. I did the same thing when I was shopping for my first place. The idea of an additional couple hundred bucks going out the door each month can be overwhelming unless you know what that money does for you.

I touched up on this topic briefly in a previous post but as in any homeownership situation there are costs incurred. If you own a house you typically pay for a homeowners policy covering you in case of various situations. One of the things that cause the yearly fee to be so high on a home is that this policy covers you in case of slip and fall. When you’re in a condo the fee you pay covers you in case of someone slips and falls in the common areas. This is a major thing to note because this fact helps you understand the lower level activity in owning a condo. With the fees you pay that go into your snow removal, landscaping, outside repairs, and recreational activities you don’t have to spend all your time on the maintenance and upkeep of your place. Most towns including Bridgewater charge it’s residents for trash pickup which is also included in your condo fees. In the Bridle Club, where I live, I recieve trash pick-up 3 times a week which is more than the single-family residents around the block.

The bottom line is that owning a condo or single-family home is a major decision. You need to ask yourself, how much time do I have to handle the various tasks that come along with a house. I personally love the fact all the outside tasks are taken care of my the association and I can focus on other things of interest. The fees you pay are comparable to those you spend living in a house. Run the numbers and do the math, you’ll see what I’m talking about. When in doubt talk to your mortgage professional and have them go over numbers with you, you’ll be surprised at what you may find out.