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rc808

Buying a duplex condo (AKA a condex)?

rc808
14 years ago

So, I'm looking to buy a new house soon. I have a limit to what I can afford. I've been looking at several areas. I live and work in CT. However, there aren't a TON of jobs for my industry in CT. They're here, and it's better than most areas of the country, but there are TONS of those jobs in NYC.

I have a stable job. I do plan on staying there for at least 3 more years.

My commute right now is fine. 24 miles each way. All backroads with no traffic.

I've been looking at homes around this area, which isn't cheap, but a lot cheaper than down on the coast. I've found some nice places. Beautiful new townhomes, new single family homes, an almost-new home with lake views. Good stuff.

But I would keep this longer commute, and if I HAD to get a job in NYC, I'd be looking at a minimum 90 minute commute. Yikes.

At that point, I could do one of three things: deal with the commute (not something I want to do), sell the place, or keep the place and get a studio apartment in NYC for most weekdays. My income would likely increase moving to a job down there, so it might offset the rent.

Towns down on the coast are commutable to NYC. I looked at one town that's about a 50 minute train ride. Very doable. It's also 6 miles from my current work. House prices are very high in this town, and it's the least expensive in the area. Decent single family homes are well over 500k, and I can only spend about 400. I looked at some condos, and they're either too small or have units above them which I don't like. I saw some new construction townhouses but the construction was cheap.

I found a builder that has done many condex developments in town. They've been around a long time and do very nice work. The condex in question would be built in a great, quiet area and would abut woods, which I like. It's priced right for my budget and has everything I'm looking for. Some rooms are maybe be a bit smaller than what I like, but it's no worse than my current condo.

The only part that has me hesitating is that it is a condex. It's a 2-unit complex. You and your neighbor are the HOA. They set up an account for you to pay your dues every month and you have the same state by-laws and regulations that any condo would have. You have legal recourse if your neighbor doesn't pay. My fear is what happens if you disagree with your neighbor or get a complete jerk? He says his clients are happy and can provide testimonials, but I don't know. He's done a lot of these developments. In the same area he built a 8-unit complex that has been self-governed since the mid 80's with no problems.

This is the kind of setup I'd never be able to afford in this town as a single family and the other condos available are just not desirable. The nice thing about this town is the proximity to work, NYC and it's an easy area to rent something out because it's such a desirable area. You get more for your money up where I am now, and I could probably get a decent single family house or townhouse, but again, location, location, location.

So, I'm looking for advice, either from those who have owned in a similar situation with a 2-unit or similarly small "complex" or know something about it.

Advice is much appreciated!

Comments (8)

  • mariend
    14 years ago
    last modified: 9 years ago

    I personally would not do it even if it was a relative/friend? Before you make the decision, I would get legal advice. I don't see how two people could be a HOA? I agree, if you get a real jerk, and you pay your share and he/she does now?????

  • rc808
    Original Author
    14 years ago
    last modified: 9 years ago

    The builder is setting up strict guidelines and whatnot for the HOA, and establishing it along with a budget. Again, they've done several of these in this town since the 80's. I will definitely talk to my lawyer.

  • Rudebekia
    14 years ago
    last modified: 9 years ago

    I'm in a three person condo association, and there are plenty of two person ones in my neighborhood. So yes it does happen. My realtor said, in her experience, a two person association can have problems with, among other things, an impasse on decisions--no third person to break the tie if you disagree. Just something to think about.

  • C Marlin
    14 years ago
    last modified: 9 years ago

    There are many such condos in my area. Yes, there is a risk, but also it is likely to work for you. The people I know involved in these are happy, one has made remarks about their neighbor vetoing one thing, but nothing you wouldn't have in any condo.
    Bottom line here and I'm sure there, is you get a nicer place for your money. I just looked at one last weekend, for the price it was a good value, only negative, it wasn't a single family house, but for the price one can't buy a SFR.
    If you buy in a highly desirable area, it will probably work.

  • rc808
    Original Author
    14 years ago
    last modified: 9 years ago

    Yes, this area is highly desirable. Decent SFH are well over 500k, even in the recession. It's 45 miles to NYC and on the coast.

  • mkiv808
    14 years ago
    last modified: 9 years ago

    Hmm, anyone else?

  • funyellow
    14 years ago
    last modified: 9 years ago

    I looked at a place like this (which we did not buy). I would advise that you check on things like, how do you decide who to hire to fix the roof, etc? What if you like one contractor and the other owner likes another?

    Also, what happens if the other person stops paying their dues?

    There's a lot of trust you have to have in this situation. You might get along with who lives there now, but how do you know you'll get along with the next owner of that unit?

  • camlan
    14 years ago
    last modified: 9 years ago

    My brother bought a condex. It's a 1920's duplex that someone bought and flipped. The HOA charter has a lot of legalese to make sure that dues get paid, etc.

    The way his building is set up, he has one side of the building and the other owners have their side. The only common elements are the roof and the wall that runs down the middle to divide the two units. The roof was brand new when he bought the place and he's planning on selling before it needs replacement. Utilities are separate; yard work is done by the owners. I think he pays $50 a month dues, but that money is for future repairs/improvements. I think when he bought the place, the water was shared, but both DB and the neighbors wanted separate water meters and the flipper ended up getting those installed.

    He does give his neighbors some money each year to decorate the front of the house. They are really into holiday decorations, and as the two front doors are right next to each other, it looks odd to see one all dolled up and the other bare. As long as he doesn't have to buy the decorations or put them up, he's fine with spending about $50 a year to keep the neighbors happy.

    Because his neighbors are two older ladies, he does feel obliged to get out and shovel the shared front walk before they do--they are willing to shovel, but DB feels guilty about letting them do the work. I think he also mows their front lawn for them, but again, that's his own doing. The neighbors do bake him lots of cookies.

    He's been there three years and nothing has come up that required condo money being spent or the neighbors to agree on anything so far.