As the Baby Boomers are selling their large homes, modest homes or just moving into smaller quarters they may not be "saving" money. The reason to downsize in Minnesota or at least the Twin Cities should be for the lifestyle change. Many of the town homes and condos in the southwest corner of the Twin Cities are as expensive as owning a home.
This is what is on the market at this time:
Square footage: 2000-2500
Town Home ~ $275,000
Condos ~ $485,000
Homes ~ $315,000
Square footage: 1500-2000
Town Homes ~ $211,500
Condos ~ $279,000
Homes ~ $252,500
Add Association fees onto your mortgage which can run from $200 - $1200 depending on the amenities and if they have been managing the funds correctly.
Questions to ask when reviewing a Home Owners Association (HOA) documents:
1. How much are the monthly fees? Has there been a recent increase, are they expecting an increase?
2. What does this fee cover? Insurance, heat, water, amenities, common areas
3. Ask for a copy of the Rules and Regulations and if they are enforced.
4. How much is in the reserves?
5. Are there any pending assessments?
6. Is this a privately managed association or is an outside party managing the funds?
7. How many own their condo and how many rent? Is there a ratio, an example would be that there are 15% rentals allowed? How is this enforced?
8. Has this HOA been involved in any lawsuits?
9. Ask for a copy of the financials. This is not usually given out unless an offer has been accepted.
Whatever you choose a condo, home or town home make the change in order to improve your life. Many of the condos are very social and are designed for one level living with heated garages. Town homes are usually set up to be like living in a house with shared walls and amenities, there are very few one level living town homes. A single family home can be perfect depending on the individual and their personal and physical needs.
Hopefully this will help you chunk down the options from a financial perspective.
