I have to say, I don’t often think about living in an apartment/condo but lately I’ve been reminded that it may be a frugal choice for many people. Currently in the city I am in (for now), a 2 bedroom apartment in a good area, with access to downtown, parks, malls, banks and Doctors (all within 30 ish minute walk/7-10 minute drive) go for about $650-$750 a month (approx 400 UK pounds). This includes all your bills except your phone, there is no tax to pay, many of the apartments have garden plots you can use for free (each the size of a large UK allotment), free outdoor parking or garage facilities and some have gyms or outdoor pools. Add to that there is an internet/phone deal for residents which costs $40 a month (about 25 UK pounds) which gives you free phone calls within Canada night and day, land rental and unlimited internet. The apartments are large by UK standards and would probably fit the average 3 bedroom semi house into it! Having compared costs associated with renting a 2 bedroom house in a similar area with the added bills you’d have to pay, you are saving approximately $500 (300 UK pounds) a month.
I’ve also had a look at the cost of condos here (apartments you own) they are about $25K less than a small house with the same number of bedrooms but again include the bills (apart from cable, internet, phone) and there is no maintenance to worry about. Many of them also have gyms or outdoor pools which can also save you a monthly membership to a fitness facility (which range from $35-$45 a month for a local rec centre membership). One area as a buyer you need to think about though is the condo fees, some seem very reasonable ($110 a month) others are like a second mortgage! From what I see how much the building has makes a big difference, for example indoor pools seem to increase the prices tremendously.
So my frugal tip for this week is don’t discount apartment/condo living as a frugal choice. Many come with great amenities like a private garden plot, a gym, great bus routes on the doorstep and lovely large balconies. It may not be right for everyone but if the ability to pay for repairs, shovel snow, keep up the garden or maintain a home or save for buying is a challenge on your budget or for your lifestyle, maybe apartment or condo living is right for you!
Have you ever lived in an apartment or condo? Was it a frugal choice for you?
That is a really good tip, it actually never occured to me that you could find a building with a garden which residents can use. I have always thought condo living might be a good solution, will look into it seriously now, thank you. I think previously I worried about the monthly fees you have to pay to the association, your tip made me see that I just need to look for buildings with lower fees and only pay for what I need. I’m not a swimmer so an indoor pool isn’t attractive.
I currently live in an apartment, and I never want to own a house. The constant maintenance doesn’t appeal to me at all. Yes, you have something you own in the end, but my time is as valuable (if not more valuable!) to me than my money. I don’t relish the thought of spending loads of time doing household repairs, or paying someone else to do them.
I live in an apartment now and I’m a little confused why it would NOT be a frugal choice. What is less expensive in your part of the world? (that’s an honest question, I’m not being sarcastic) Are you comparing apartment/condo living to renting a house, or just renting a room from someone?
Anyway, I live in one of the most expensive parts of the US and there’s a much lower rate of home ownership here than in other states. No one I know makes enough money to own their homes on a single income. All of my single/younger friends live in apartments, and the couples seem split between apartments and houses. Condos get mixed reviews – they’re considered harder to resell than a house, you get the hassle of apartment-like living without the freedom that renting includes, and you usually don’t get yard/garden space (though this varies, and may be a good thing for some!).
Living in an apartment can be great! I’m in a lovely walkable neighborhood (are you familiar with walkscore.com? my neighborhood gets a 98!), and am 3 miles from work. I’ve gotten a garden project going with several of my neighbors – we have a patio and a filled-in pool that just had miscellaneous shrubs planted as filler. With the building owner’s permission, and with some funds they provided, we took out some shrubs, built some raised beds, and are enjoying our first harvest right now. And I have the added benefit of not being responsible for my space – in four years, I’ve gotten a new stove and had major ceiling/wall work done because of a leak. It was aggravating and messy, but didn’t cost me any money.
That’s awesome! Where I was before it was just as expensive as a small house – as you were responsible for the fees & tax (even as a renter). So I’d gotten out of the habit of thinking that each area is different! Also because bills are included here that makes such a difference
So glad an apartment works for you!!!
I think that’s a really good point about it depending where you live. I think condos are great and I know someone who is raising a family member’s child, who is a single woman who moved into one for many of the same reasons you mentioned. For her house repairs were making her go into debt so it was no longer worth it, she also found that there were some other greak perks like the grannies in the building who would happily take care of her son for her!
I’ve heard of buildings where the fees are over $550 a month so obviously many of those won’t be worth it, but I think looking around you can find some bargains! Also some of the newer condos have good deals where you get the first year or even two years free of maintenance fees, this would let you save up a bit. Some condos are houses turned into apartments which can be less expensive too.
Great post! Housing is so expensive, it’s good to be aware of all the options!
I also meant to say that people are often unaware some condos and apartments come with outdoor space, a house turned into apartments may give each a small piece of the back garden!
Good grief. Yet another example where we in the UK seem to be (erm, trying to find a polite word) as far as housing is concerned.
I really do think we are ripped off in so many ways here. I have just been on a 2 week holiday in the UK and I swear we could have flown off somewhere hot and sunny for half the price.
Sadly you are so right. While the big cities here are more expensive, they do not compare at all to the cost of London, England or Surrey, Hampshire, Berkshire etc. The UK is so so so expensive when it comes to housing, childcare and transport at least double for all three!
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