The Case for Buying a Condo

May 28

If you want to own a home but are worried about filling up your weekends with house projects, buying a condo or a townhouse might be the perfect option for you! In addition to being less work to maintain, condos and townhouses are especially attractive during this period of higher interest rates given their affordability.

The pros of condo/townhouse ownership

There are many reasons a condo or townhouse may be more attractive to you than owning a single-family residence. Let’s look at why buying a condo or a townhouse in Portland may be the right move for you.

Price Tag – By far, the most attractive aspect of buying a condo in Portland is the price tag. Finding an affordable single-family home in Portland that doesn’t have a number of condition issues can be a headache. Depending on what you are looking for, you can still find a great condo in the $200-350k range.
Location, Location, Location – There are lots of condos available in prime urban locations around Portland. If you are on a budget but hoping to live in an ultra-walkable neighborhood with all the fun shops and restaurants, a condo may be your best bet.
Maintenance – If you don’t want to spend your free time mowing the lawn, pulling weeds, and pressure washing, condo and townhouse ownership provides a less maintenance intensive experience. Spend more time hanging art and picking the right paint color and less time sweating in the yard.
Community – Condos and townhouses are great options for people who are craving more of a sense of community. Living in a large building or complex offers lots of opportunity to meet and socialize with your neighbors and being a member of the HOA gives everyone a collective sense of working toward the common good.
Amenities – Want a pool or a hot tub without having to maintain it? Wish you could walk down the hall to your gym? Larger buildings and complexes often have amenities like recreational areas, meeting spaces, and storage that you wouldn’t be affordable in a single-family home.

What is a condo anyways?

Condos (or condominiums) refer to a type of home ownership where the homeowner owns a unit within a larger building or complex and share ownership of the land and any common elements of a property. There are a number of different types of condos in Portland, Oregon. From turn-of-the-century multi-story buildings loaded with vintage charm to newly constructed cottage clusters, there are a ton of great options to take the first step toward home ownership. Let’s take a look at the different types of condos available:

Condo Building – This is the most common type of condo in Portland. This type of condo refers to a larger building or complex of buildings that includes several condos within. In Portland, you’ll find these buildings in more centrally located areas of town. Larger buildings, especially those that are newer construction, typically have more amenities like fun common areas, storage, and recreational facilities.
Converted Condos – The second most common type of condo in Portland is larger single-family homes or multi-family homes like duplexes and triplexes that have been converted to condos. This type of condo offers an ownership experience that is a little closer to living in a single-family home in terms of having slightly more privacy and is more likely to include some yard space.
Detached Condo – Detached condos are condos where there are no shared walls but the land is still jointly owned. With no shared walls, this type of condo offers extra privacy and is the closest form of condo ownership to living in a single-family home.

What is the difference between a condo and a townhouse?

The primary difference between condos and townhouses is that the homeowner owns the land directly beneath their townhouse. Townhouses are attached homes where the homeowner owns the unit itself, the land beneath the unit, and share ownership of the common elements of the building or complex. The land you own usually includes a bit of yard and/or space for parking. Like condos, some townhouse complexes have fun amenities like exercise facilities or pools.

What is an HOA and how does it work?

All condos and most townhouses have an HOA, or homeowners’ association, in place to manage and govern the common areas and take care of maintenance. The HOA is a private organization formed by a developer when a complex is built or afterward by a community of homeowners. All homeowners are usually required to be members of the HOA and the HOA is governed by a board of directors who are chosen by a community vote.

The HOA’s core responsibilities include producing guidelines for the maintenance and management of the common spaces, defining what alterations are acceptable to a unit, and enforcing rule violations. The HOA collects a monthly fee that goes toward both short term maintenance needs like landscaping and longer-term projects like replacing siding or roofs. The monthly fee residents are assessed is determined based on the community’s needs and is voted upon by the community.

Maintenance: Who’s responsible for what?

While every condo and townhouse have different maintenance responsibilities based on their HOA agreement, here is what is typical in terms of what you can expect in terms of maintenance. When you own a condo in a larger building or complex, you are typically responsible for maintaining the unit from “drywall to drywall”. In other words, you’re responsible for all the house systems, floors, and drywall inside your unit. The plumbing, electrical, and structural components that are in the walls or outside of your unit are typically the HOA’s responsibility. For townhouses, your maintenance responsibilities can extend to electrical, plumbing and HVAC systems that are in walls and underground. Your responsibility for those systems usually ends at the border of your property and the common space. Exterior elements like roofs and siding are typically the HOA’s responsibility, although a homeowner may be responsible for windows and doors.

The cons of owning a condo or townhouse

We’ve looked at all the reasons owning a condo/townhouse in Portland is a fantastic option. But, like all forms of home ownership, there are downsides to consider.

Shared walls – With the exception of detached condos, both condos and townhouses have at least one shared wall. To many this isn’t a big deal, and most buildings are constructed to limit sound transfer between units. But for those with barky dogs, loud kiddos, or musical instruments, sharing a wall can feel like a deal breaker.
Appreciation – As a general rule, attached housing tends to appreciate at a lower rate than detached housing. Condo/townhouse ownership is still a good long-term investment, but you won’t necessarily see the same returns as you would with a single-family home.
HOA Fees – This isn’t necessarily a con, but it may feel like one to some. Depending on what the HOA fee covers and the availability of amenities, your monthly HOA fee can be quite steep. As you are shopping for a condo or townhouse, make sure you are aware of what your monthly HOA fee will cost and what it covers. As you are evaluating the HOA fee, it’s important to remember that a portion of your fees are being set aside to fund surprise repairs and big-ticket items like roofs.

In Conclusion

For some, buying a condo or a townhouse is a no brainer! Whether you want to be in the heart of the city with fewer maintenance responsibilities or you are finding that affordability is a challenge, buying a condo or townhouse is a great alternative to renting. Especially in down markets, buying a condo can be a golden opportunity for buyers who are looking for a deal. So, if you’ve read this far and you’re tired of renting, consider this your sign to reach out. We’ll talk about your housing goals and come up with a personalized approach to buying a home.