Is It A Good Idea To Combine Two Condo Units Into One?


Some people move to single-family homes when they outgrow their condo units. Others, however, purchase the condo next door and combine it with theirs to create bigger spaces. While the latter may be the smarter option in some situations, here are two things you need to consider before doing it.

Double the Housing Costs

It's natural to assume that, when you combine two condos, all the associated costs will be merged together as well. Unfortunately, that's not always the case. Depending on condo HOA bylaws and city regulations, the two units may still be considered separate residences, even though you renovated them into one cohesive living space.

As such, you'll be billed twice for all housing costs including utilities, taxes, insurance, and even condo fees. For the most part, this will likely only result in annoyance and inconvenience, because you'll have to write two sets of checks every month for housing expenses.

However, it can quickly become a complex and problematic situation if the issue extends to your mortgage. For example, you may have to take out two mortgages because the local tax authority lists each unit as separate properties. You could end up losing the entire combined property if you fall behind on one mortgage and the bank forecloses on the loan.

It's important to talk to a real estate agent about how a combined condo would be treated by local utility and government agencies, and develop a financial plan that encompasses those costs and issues.

Separating May Be Painful

While merging the two condos may not be a big deal, separating them later could turn out to be a headache. Depending on the renovations made to the property, you may have to invest quite a bit of money to return the units to their previous separate state.

If you managed to get a lender to put both units under one loan, you'd have to either sell both units at the same time or, if you sell them one at a time, find another way to pay off the loan so the mortgage company will remove the lien and let the buyer take ownership of the unit they bought.

Before combining condo homes, it's critical to think about your long-term needs and goals. If at any point you think you'd want to go back to having two separate condos, it's probably best to keep the financial stuff independent from each other and only do as much renovation as you're willing to pay to reverse when it comes time to revert the condos to their original state.

For more information about combining condo homes or to purchase a second unit near wynmoor village, contact a real estate agent.

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