Posted by: chris on Jan 12, 2011
Someone asked a very common question yesterday and I thought it would be best answered in an article. Yesterday I was asked:
"Chris, What are the average on going expenses such as taxes, insurances, association dues. What about association assessments for renovation, etc. What exposure does an owner have to their "whims". I would like a good handle on these type of dynamics. Thanks, ............just a brief overview would be great"
There are several expenses involved with owning a condo.
The first thing we should cover are the association fees. Things covered in condominium association fees will vary by condo but are usually fairly uniform. Association fees in Panama City Beach Florida normally cover water, sewer, and basic cable. They also cover insurance on the outside of the condominium and the building. Also covered is the on-site management and grounds keeping. You will need to purchase homeowner's insurance to cover the inside of the condo as well as all your belongings. You can expect to pay $500-$700 a year for a homeowner's policy. Electric bills shouldn't be all that expensive. I have a few 3 bedrooms and my electric bill usually runs around $80 a month for an individual condo and rarely goes over $100. End units will be more expensive because you catch more sun and are missing a shared wall with another unit. In addition, you will be responsible for a basic phone bill. You also need to estimate property taxes and the easiest way is to expect to pay 1% of the value of your condo. If you condo is worth 500K, you should expect a bill for roughly 5K from the bay County Property Appraiser.
The second part of your question is a topic all to itself, I have a second article covering that (Owner exposure to condominium associations and their fees