NWR: Condo vs. house

Think for your future.

You want kids? Buying a one bedroom condo won't work for that. I'm not against condos, but it would make more sense to buy something that works with your future plans.

How long do you think you would want to live in that condo? If you're going to save a bunch of money (I know, it's a really technical term for how much you're going to save) - maybe you could upgrade in a few years a little more easily?

ETA: FH and I are staying in his house, which is way under our housing budget, and I'm taking a full time job in the area - we don't plan to stay here forever - but it's all about saving for our future.

We're planning to build a house, and the things we want are on the upper end of our budget - but staying in the cheaper house, and me working more is saving us a ton for future plans.

If you want kids in the next 5 years, I would keep saving till you can get 2-3 bedrooms in a good school district.

I purchased a condo in the city. We didn't have children at the time. Now we have two and we really want to look into a house but it's harder having to sell or rent etc. It would have been easier if we bought a house but thankfully it's spacious enough that we have some wiggle room until we figure it out.

I would caution on the one bedroom though. That might be harder (not impossible) to sell in the future.

Goodness no---don't buy a 1 bedroom if you're thinking of having kids. There's no guarantee you can resell so why put yourself in a potentially bad situation?

If anything, downsize to a 1 bedroom rental now and save that extra for a larger downpayment in 3-5 years when you have kids.

I personally don't like condos. The fees associated are often outrageous.

That being said, is pest control a thing you think you'll need? Are you purchasing the condo? If so, what are their resale values? Do they sit on the market for a long time or sell quickly? These are things to look at if you do choose to go that route, and plan on expanding your family in a few years.

Also, downsizing on space means downsizing on stuff. Do you have a bunch of stuff to get rid of? Do you have storage in the condo, or would you need to rent a place?

Guest space is critical, but can be solved with a pullout couch. They're not ideal, but they are a bed. Make sure if people are coming to stay you let them know that's what you have. and invest in a mattress topper for the couch because that really does help.

Is there a possibility you could rent out the condo in the future? Does it need any upgrades - so if you do minimal work you could improve the value?

FH and I bought a lot in a good school district and are working on site plans and such - we are aware that even if we have a child soon after the wedding (besides the waiting period for our trip to a country with Zika) we have quite a few years before we need to worry about sending a child to school. Although I don't want to stay in this house, nor this town/neighborhood - I know even if we start to make plans the day we find out we're pregnant in the future - we still have at least 4+ years before sending him/her to school - which would be enough time to build equity and re-sell.

Condos have crazy strings attached. Honest to God, FH decided he'd never have one because they typically ban grilling on your own porch or deck.

Rising HOA costs can be killer too. In my area, its not unheard of for HOA to be equal or more than the mortgage, which is insane

I don't think buying a condo in the city is necessarily the best idea if you're thinking kids in the near future. Perhaps rent a condo in the city for now and think about purchasing a home in the suburbs once children come into the picture.

Going from a 3 bedroom house to a 1 bedroom condo will require a lot of adjustment. I probably wouldn't do it for that reason alone!

Knowing that you want to start a family and move in the next 5 or so years - do you think that it will be difficult to resell the condo then?

We are in a 3 bedroom house now and I can't imagine moving somewhere smaller. Also, the neighborhood has really gone down in the last 5 years since FH purchased his house (before he met me) and I KNOW we're going to have an awful time trying to resell in 2-3 years when we want to move. I also HATE condo/apartment/townhome living cause you can't choose your neighbors!

Maybe a pro-con list would help too!

Make a pro-con list.

We live in a condo and I love it. I thought we would be here longer. It is SO much cheaper than a house because we only need "Walls-In" insurance and my property taxes haven't gone up a ton. It is also crazy cheap to heat and cool and our association is really picky, so our complex is very neat and everything is taken care of very quickly. It is also safe, friendly, and quiet.

We are now moving into a house because we found one we life that we can grow into.

I think it depends on how long you want to be there. Our house will run us about 800 more a month than our Condo, but we can afford it and it is worth it to us now.

The HOA for this place is actually pretty low- $163. We would probably live in it for at about 5 years, then try to rent it out for a while rather than sell it right away

ETA: I started typing this before I got to read some of the responses, and I'm definitely reconsidering now. Our current house is for whatever reason really cheap, and we'd stay here, but it's not in an ideal area for us. So it's either stay here, rent somewhere else that's way more expensive, or buy.

It is a personal decision. I would not buy a place that is not big enough to fit children if you want children in the next few years. You should at least get a two bedroom condo. Also beware of HOA fees for condos which can be very high. The pest thing shouldn't be a concern though.

I work in DC and bought a house in Northern Virginia about 20 miles away. I hated living in an apartment when we lived closer to the city and we got on each others nerves all the time. I personally wish that I lived a bit closer in because my commute sucks. But I have a big 4 bedroom 3.5 bathroom house and a yard in a safe neighborhood with good schools. I may move someday when I can afford those same things in a closer area. For now I am happy with my decision.

I agree with Linds line of thinking with the possibility of renting the condo out in the future if you could afford to keep it and still by another place when you do have kids.

FH went back and forth on this for a while when we first started house hunting. I am a huge fan of living in the city, within walking distance to things, but we know we want kids soon so decided against it.

Keep in mind that the amount you're approved for goes WAY down with condos, because lenders have to factor in HOA fees (typically several hundred dollars a month). For every $50 per month in HOA fee, it translates to about $10,000 less in buying power. Keep in mind also that your homeowner's insurance will cost SO much less.

@Richard, it really depends on her area. In my area condos have COMPLETELY skyrocketed in value over the last few years. I am working on a mortgage for someone purchasing a $960,000 condo downtown. It was last purchased only 2.5 years ago for something like $650,000, and that's definitely not an abnormal case here.

We had a semi similar issue: small church, huge reception venue (and large guest list in mind). I loved the church and that it was the church FH grew up in, but I knew I could not possibly get my guest list down enough so that everyone would be comfortable during the ceremony. We ended up choosing a different church. It's best to account for the entire guest list in all capacities. Good luck!