How is a condominium a bargain if I'm paying monthly fees?

Condominiums can be an appealing alternative when home buying as you usually get more home for your money. By sharing the cost of common areas with other owners, condo owners pool their resources and this usually leads to more amenities than you might get with a single family home.

When you share the common area, that means you also have to share the expenses of maintaining these areas. This actually allows you to have more amenities for less money. It may seem like this means you are paying an "extra" fee every month to own the condo.

It's important to understand not only what the monthly fees are, but what those fees provide. Many associations cover expenses that you would have to pay yourself as an single family homeowner. Some of these expenses might be minor like trash removal but some may be more substantial like insurance or a roof replacement.

You may find that the fees may even be less than you would pay just for insurance alone on a single family home. When you look at it this way, those fees are actually saving you money making a condominium a more affordable option than buying a single family home.

Always ask questions about your condo fees, and what they include. As someone that has served on the board of a condominium association, I will take the time to make sure you are totally comfortable with the condo association's financials before you commit to purchasing your new home.

Neil