Condo Fees & Home Owners Insurance - STX
We're considering a move to STX and trying to evaluate our finances and what we can afford down there.
On condos, it seems like the condo fees are really high? What do most of the condo fees include? Why are they so high?
On a $150K house - about what would the cost of home owners insurance be? I'm sure it would be high because of hurricanes but can anyone give me a really rough idea of what to expect so we can figure out what we might be able to afford?
Thank you 🙂
The condo fees give a lot of people sticker shock, but if you itemize out what they pay for and line them up side by side with a house you might like to purchase, buyers often find that the condo fees aren't padded as much as they at first thought.
Condo fees typically include:
Liability insurance for the HOA
Standard hazard insurance on the dwelling structures
Wind storm insurance (most projects, although a few "self-insure")
Pest control services
cable tv package
swimming pool and maintenance
security (sometimes a guarded/gated entrance)
management of the complex
sometimes there are tennis courts, hot tubs, BBQ areas, etc.
Some condos include water and others charge separately for this
Some condos include basic telephone and with others you set up your own direct service if you want it.
With a house, you can expect to pay for full-coverage insurance according to the following general formula:
80% of purchase price X 3% = annual premium
The 80% is because you don't have to insure the land value and that's an approximate deduction you can expect.
The 3% is also approximate and can be a little higher or a little lower depending on factors that may give you extra deductions, such as if the property has hurricane shutters or not, the kind of roof it has, if it's a waterfront property or inland, etc.
So for a $150K purchase price on a house, you can expect an approximate annual insurance premium of $3600 for full coverage including windstorm protection.
For low to moderate priced condos, the HOA fees often include $300-$600 per month for full insurance, with another $200-$300 monthly to pay for all the other services provided. If you don't want a swimming pool and security and the ocean views you often get with condos that you would not be able to get with a $150K house, then the house might save you a little $$. If you don't want to skimp on the amenities, a condo is often the most affordable way to go.
That was the most helpful answer! Thank you.
Are there any three bedroom condo complexes? A lot of the ones I saw were two bedroom at most. I love 'The Reef' but those only have one bedroom and 'Carden Beach' is a bit out of our price range until we win the lottery.
There are a few three bedroom condos on the isalnd.
Incidentally the Reef has 50 one bedroom condos and 51 two bedroom units.
Currently the only unit for sale is a two bedroom.
Alexandra, That's GREAT info! I wish I would have had that three years ago before the market went crazy!
Regarding condos, do you know which ones currently allow pets --- we are kicking around the idea of buying but have the cats...