When you’ve saved up enough for a first home, have begun to consider settling down seriously, the kind of home that you probably imagined having is a house. Over the years, however, the emergence of condos and their unique features, as well as the flexibility of apartment renting, has been changing the minds of those who have yet to decide on their first real estate venture. But have you given any thought on the possibilities you can have as a townhouse owner?
Don’t jump into the condo bandwagon just yet, and hold off on signing the lease of that door apartment until you’ve considered how a townhouse trumps both of these dwelling options.
“What is the difference between a condo, and a townhouse?” is one of the most common questions that real estate professionals hear. When you are ready to become a homeowner or rent a home, you may consider a variety of home styles. The most popular types of housing for first-time homebuyers and home renters include single-family houses, condominiums, and townhouses. If you are ready to consider a new home for yourself, and your family, a condo vs townhouse conversation is a good thing to have with a real estate professional in Norterra. Once you can consider the small and large differences between these two housing styles, it will be easier to know which is the right home for you.
When you talk to a real estate professional dedicated to maintaining your interests, you can discuss all of your needs for housing together. If you have decided that you want either a townhouse vs condo there are some things to consider to make that final choice. First, ask your RealtorⓇ about the neighbourhood, schools, and workplace commute as well as any other questions that may affect the property value of the townhouse or condominium you are dreaming of. If you aren’t quite sure if a townhouse or a condo is the right fit for you, take a look at how the top two options for single-family housing stack up against each other. Looking for home builders? Look no further! MJS Construction Group has you covered.
If you’ve thought about owning a home, but feel there’d be too much space to maintain, you need to evaluate townhouse vs. condo purchases.
First-time home buyers with little money saved and no time for home maintenance may benefit the most from starting in a condo or townhouse and upgrading to a house later on. Baby Boomers and seniors can also benefit from the little upkeep and lower costs that a condo or townhouse have.
They are often less expensive than single-family homes in regard to both the initial investment as well as monthly payments, even when factoring in various fees.
Let’s compare the two, so you can understand which is the better fit for you.
Condos Vs. Townhouses
Condos are a community within a building, where an individual instead of a landlord owns each unit. Their size and features are similar to what you get when renting an apartment. The only real difference is the ownership factor.
Townhouses are more similar to single-family homes, in that you have land to care for and their structure more closely resembles that of a house as opposed to an apartment — more on that in the section below.
Location and structure
Condos are often available in prime downtown locations, and their structures are very similar to apartments. They’ve often been called “luxury apartments.” When it comes to millennials, condos are quite attractive. That’s because many millennials understand buying a property in a prime location will pay off one day. As soon as it starts to feel like they’ve grown out of their little nest in downtown, they can move elsewhere and turn their former home into a rental.
Townhomes are closer to the suburbs, or — at best — nearby urban areas (if city life is your preference). They’re generally two, sometimes three, stories high and are designed in rows.
Condos come in a wide range of styles. They could be part of a group of cottages, a large high rise or anything in between. Townhomes are usually built in rows, with the units sharing at least one wall. Quite often, townhouses have two or three stories. Your preferred style will determine your choice between a condo vs townhouse.
Condos are usually apartments within a complex. As a result, owners only own the interior space of their investment properties. Other areas such as the lawn, halls, gyms, pools, parking lots, and the building’s roof are the property of the Homeowners Association (HOA). On the other hand, owners of townhouses own their property’s exterior and interior, including the driveway, lawn, and roof. If the townhouse investment property is part of a large neighbourhood, there could be some communal areas such as parks, pools or playgrounds for your future tenants to enjoy.
You can’t talk about the condo vs. townhouse breakdown without mentioning homeowners’ associations (HOAs). This is one of the biggest things that separates these types of properties from single-family homes.
When you purchase a condo or townhouse, you are required to pay monthly fees into an HOA. The HOA, which is run by other tenants (and which you can join yourself if you are so inclined), handles the day-to-day maintenance of the shared spaces. In a condo, the HOA is managing the building, its grounds, and its common interior spaces. In a townhouse community, the HOA is managing common areas, which includes general grounds and, in some cases, roofs and exteriors of the structures.
In addition to overseeing shared property maintenance, the HOA also establishes rules for all tenants. These may include rules around renting out your home, noise, and what you can do with your land (for example, some townhome HOAs forbid you to have a shed on your property, even though you own your yard). When doing the condo vs. townhouse comparison for yourself, ask about HOA rules and fees, since they can vary widely from property to property. At MJS Construction Group, we offer a wide range of home builders Melbourne.
Even with monthly HOA fees, owning a condo or a townhouse typically tends to be more affordable than owning a single-family home. You should never buy more home than you can afford, so condos and townhomes are often great choices for first-time homebuyers or anybody on a budget.
In terms of condo vs. townhouse purchase prices, condos tend to be cheaper to buy, since you’re not investing in any land. But condo HOA fees also tend to be higher, since there are more jointly-owned spaces.
There are other costs to consider, too. Property taxes, home insurance, and home inspection costs vary depending on the type of property you’re purchasing and its location. Be sure to factor these in when checking to see if a particular home fits in your budget. There are also mortgage interest rates to consider, which are usually highest for condos.
There’s no such thing as a sure investment. The resale value of your home, whether it’s a condo, townhome, or single-family detached, depends on a number of market factors, many of them outside of your control. But when it comes to the factors in your control, there are some benefits to both condo and townhome properties.
A well-run HOA will ensure that common areas and general landscaping always look their best, which means you’ll have less to worry about when it comes to making a good first impression regarding your building or building community. You’ll still be responsible for making sure your home itself is fit to sell, but a stunning pool area or well-kept grounds may add some extra incentive to a potential buyer to look past some small things that might stand out more in a single-family home. When it comes to appreciation rates, condos have generally been slower to grow in value than other types of properties, but times are changing. Recently, they even surpassed single-family homes in their rate of appreciation.
Figuring out your answer to the condo vs. townhouse debate comes down to measuring the differences between the two and seeing which one is the best fit for your family, your budget, and your plans. There’s no real winner—both have their pros and cons, and both have a fair amount in common with each other. Find the property that you want to buy and then dig into the details of ownership, fees, and cost. From there, you’ll be able to make the best decision.
Let’s Now Dissect Some Differences:
Turn Yourself Into A Landowner
If one of your unfinished missions in life is ownership of land, then owning a townhouse is basically what you consider compared to a condominium, where this residential building is still owned by the company who developed it.
Funny, but it is true, a little piece of Earth comes for every purchase. It does sound like an advertisement from a fast-food company offering toys for every specific meal, but that is what you get for buying a townhouse. You get to own the piece of land where your unit stands on. Isn’t that great?!
Cheaper And Larger Floor Area
Although the condominium might be a bit cheaper compared to buying a townhouse, you might as well check the bigger picture. Townhouse designs indeed have a compact layout that maximizes everything on its floor area. Considering that in mind, this meant you are getting your money’s worth since no area was left without a purpose. If you prefer a spacious home that includes auxiliary spaces, then this is ideal for your family. In contrast, a condominium floor space is not as promising as what a townhouse can offer.
Get Your Own Brand New Car…Garage!
Ever consider counting parking tickets? Are you getting to be impatient with your neighbour blocking the driveway? Townhouses are providing a safe place for you to keep your prized ride. You get your very own parking spot from which this space is often under a guarded and secured gated area, eliminating the needs for paying parking fees. A condominium also has this amenity as they can offer it as an add-on since there is an additional premium for this feature.
Are You Mr Fix It?
The comparison between these two types of residence in the case of maintaining your unit is pretty much the same. Both have to pay some monthly dues to a Homeowners Association (HOA) for a townhouse and a Condominium Homeowners Association for maintaining the common areas of their respective complex. You are entitled to care for the inner fixtures of your house while you’ll have to talk to the HOA regarding the external portions of your unit.
Why is this entry in the Pros and Cons Section? Well, of course, you have to figure out how big these associations are. As a townhouse would have fewer units compared to a condominium, the association would be composed of a fewer number of homeowners. That implies if you have pleaded your case to anyone, then it is easier to talk to a smaller group as to make your case in a large society.
Given that it’s just opposite your wall, a townhouse would have another neighbouring unit on either side where both of you shares the same party wall. A condominium unit, on the other hand, has all of its sides just adjacent to another unit, besides of course that your ceiling is someone else’s floor and your floor is someone else’s ceiling.
Suppose you wouldn’t mind sharing a wall or two. In that case, a townhouse is perfect for you unless you want to share all sides of your unit along with your floor and ceiling. You can go with a condo where you can also share a lobby, hallway, elevator and every commonly available area.
Insomuch as comparing a townhouse and a condominium, there will be one evident difference between the two residential structures. There is this comfortable environment in a townhouse that nurtures a living room design for small houses compared to the apartment or rental style atmosphere in a condominium.
Condo vs Townhouse: Which is Best For Me?
In the condo vs townhouse debate, you must consider the best aspects of each option before you know which is the right style of home for you.
What is a Condo Best For?
Ideally, condos are for residents who enjoy apartment-style housing with common areas and shared outdoor spaces. If you are someone who anticipates living in apartment-style housing with a neighbour above, below, or next to them, then a condominium might be best for you. A condo is best for someone with the ability to climb stairs, live communally, and enjoy nearby attractions like restaurants, shopping, and businesses.
The bottom line: Condos are best for people who desire an economical building, shared outdoor areas, and a communal lifestyle.
What is Townhouse Best For?
Considering a single-family home means that you can include condos, townhouses, and houses in your search. However, townhouses offer unique features making them ideal for a middle-ground option within the community property categories. The perks of this type of home include community living, more space than a condo, and multiple floors which can be the ideal layout for families who need multi-level living space. Some townhouses include small outdoor spaces ideal for gardening, pets, and even a garage for your automobiles. If you are prepared for the additional maintenance responsibilities of a single-family home, a townhouse is a good option.
The bottom line: Townhouses are best for people who require a single-family home, but desire more space within a community property. Check out our range of Melbourne home builders for your dream house.
Community properties, including apartments, condominiums, and townhouses, are ideal for people with independent lifestyles. Comfortable and cozy, these types of communal homes are appealing for some people. However, over time you may outgrow these types of properties, and desire a single-family home.
Before you make your final decision complete this comparison of condos vs townhouses, this step is an essential consideration before you rent, or purchase a new home. While condominiums are convenient, if you are ready to take responsibility for more property upkeep, and you have room in your budget for it, a townhouse could be the right choice for you.
So, which is better? The decision of whether to purchase a condo vs townhouse often boils down to the lifestyle of your potential tenants, as well as your desired return on investment. Young, first time real estate investors with no time for property maintenance or little property ownership experience may want to start with buying a condo rental, and then later upgrade to a townhouse. If you’re a more experienced real estate investor looking to expand your investment portfolio, you may benefit from owning either townhomes or condos.
The benefits of owning a home instead of renting offer buyers several tax advantages, the ability to grow equity, and of course, a place to call your own. And, the current real estate and mortgage market conditions have created the perfect opportunity to transition from writing a monthly rent check to investing in your own home. Whether you’re looking to finance a townhouse vs. a condo or vice versa, we’re here to help.