Condo or House in ATX?

Question

I have lived and rented in Austin for the past year. I am ready to buy, but I am trying to decide between living in a townhome/condo setting closer to downtown or a single family home a little further out. 2+BR, 2+BA, $175k-$205k. I plan to live in the property with a roommate and fully rent out the property after 1-2 years. Thoughts?

Tim Kyle · Answer

In general I don't like Condos....HOA fees - That can change at any time out of your control. The management situation can change at any time. Their maintenance and what they do (customer service) is typically out of your control.

HOA rules/regs that can and will change. They can govern everything from what color the roof needs to be or when it is replaced, who you can hire, etc. They can even say that there are too many renters and kick investors out. The HOA can go upside down, or not carry the right insurance and lenders may not like that...

New construction Condos bring all sorts of problems. You might be competing against the developer when you try to sell. It's not like your unit is drastically different than the brand new, exact same floor plan on the other street. Doesn't mean the deals can't be good. It's just a much harder sell IMHO.

Jarrod Weaver · Answer

As @David Ivy mentioned above there are reasons for both and a market for both. It's a decision you must make regarding your long term investing goals. What are the support and resistance points you are considering for each?

David Ivy · Answer

@Taylor Patterson

There are a number of things to consider, many of which will depend on your particular lifestyle and goals. What do you have in mind when you say "little further out?" Below is a map of every 2+/2+ condo in the Austin-area on the market or sold within the last 90 days for $205k or under on the MLS:

Here is s a map of every 2+/2+ single family home in the Austin-area on the market or sold within the last 90 days for $205k or under on the MLS:

Notice that the single family homes and condos meeting your initial criteria are in basically the same areas. Either way you go, you won't be in or right near downtown. However, if you dropped down to 1 bed/1+ bath on your condo, you could get a little closer to downtown. That would rule out having a roommate, though.

I like single family homes over condos as rentals, in general, for a number of reasons. However, that doesn't mean there aren't advantages to condos. Check out this.