subject: Palm Springs Condos – Mastering the Full Price of Ownership [print this page] There are a lot of reasons why folks invest in condo properties in Palm Springs. Frequently the main motive is the affordability factor. Condominiums normally run you a percentage of what a similar home might cost you. This is attributable to the sharing of the common areas in addition to the lack of cost associated with the land alone. Nonetheless, a person ought to consider the comprehensive cost of ownership when taking into account this more inexpensive alternative. Quite often people fail to fully grasp that in addition to the mortgage there are other charges associated with owning Palm Springs condos.
Some of the fees associated with condos:
HOA Fees These monthly charges cover things such as common area repairs and maintenance, insurance, gardening, landscaping, garbage, sewer, water, cable, security and other costs. The particular services that are taken care of fluctuate from condo to condo so be sure to verify with your Realtor prior to making a final decision. There might be a $200 or even more difference between HOA fees in various condo complexes.
Insurance The HOA fees will generally cover insurance for the exteriors of the buildings, structures and common areas. Your personal property however will not frequently be covered. So, if you will enjoy your personal property covered, then you'll certainly need to sign up for a personal insurance policy. Additionally to this personal policy, if you put less than 20% down on your mortgage loan then you will be obligated by the bank to maintain PMI or Private Mortgage Insurance. This PMI will need to be carried until you have paid down 20% of your equity in the condominium.
So let's compare 2 Palm Springs condos and compare and contrast the cost of purchasing each.
Condo 1: Tiffany Circle, Palm Springs, CA
Price: $175,000
Size: 1433 sq. ft.
2 Bedroom 2 Bath
Year Built: 1979
HOA Fee: $300
Property Tax: 1.25%
Condo 2: Paseo Raqueta, Palm Springs, CA
Price: $175,000
Size: 1465
2 Bedroom 2 Bath
Year Built: 1979
HOA Fee: $456
Property Tax: 1.25%
I'm sure you might notice that excluding a very small difference in square footage these Palm Springs condos are basically the same. So for both condominiums, your mortgage payment with 20% down you'd pay $891.65 every month. If you include the HOA fees, your payments would jump to $1191.65 and $1347.65 respectively. That $156 per month results in a 13% higher payment for the bigger HOA. Because of this you ought to really contemplate seriously which one of the Palm Springs condos you would choose.
Something that is not considered in this scenario is what the HOA fees cover. If one covers cable television and the other one does not then that difference in cost actually ends up being less than $156. Just be sure to deal with all points with your Palm Springs Realtor. You really don't want to put an offer in on a condo because it has a cheaper HOA only to figure out that the cost variation was based on fewer services that perhaps, you would have preferred in the other condominium.
Palm Springs Condos Mastering the Full Price of Ownership
