FWIW, I use a cold & draughty garage with no insulation. Yes it's cold in winter so I use electric heating. And yes, it's expensive, I suppose, but compared to the rest of the electric bill (all-electric bungalow, storage heaters, frozen wife…, plus coal fire) it's actually peanuts.
I've tried the WD40 route (smelly and messy) for the lathe, and eventually ended up using a pair of Self Regulating 10W heaters from RS Components.. With these, the lathe never has that bone chilling numbing feel in winter and never gets condensation. The downside is that the heaters run at 38W which, although higher than 2 x 10W is actually within spec.
I've also fitted one of them to my milling machine, but not to the drilling machine or the grinder, neither of which suffer from condensation. It probably also helps that I keep both lathe and mill covered by a cloth cover and a plastic cover on top.
I have some experience of dehumidifiers and like others here, the darn things needed emptying frequently. Interestingly, the previous house (also all-electric with storage heaters) suffered badly from condensation. The present bungalow is a lot better. I put it down to the open fire drawing lots of air through the building hence getting rid of the damp air.
Regards,
Peter G. Shaw