There are many things to consider when purchasing your home. One of the key factors is deciding what type of home is best suited for you. Condos, townhomes and single-family homes each have their own set of pros and cons. To make a smart decision, here are a few factors to consider:
Many people are drawn to the convenience factors of condos. Condo owners have access to amenities such as pools, playgrounds, gyms, courtyards, event rooms, and other common areas. Condos typically have a doorman, security cameras and locked entryways that offer a feeling of safety to condo owners.
Your monthly mortgage payment for a condo will include a HOA fee that covers insurance, maintenance and other amenity fees. Condos usually warrant a lower homeowners insurance rate than other types of homes since you are only insuring the interior of your unit.
Some downsides to owning a condo include being subject to the rules of a board and management company, the potential of HOA fee increases, and a lack of privacy.
Like condos, townhomes come equipped with amenities and conveniences that are covered by an HOA fee. Townhomes typically come with more space than condos since they are multiple stories, and you have ownership of the roof, lawn and driveway. Owning the actual land the townhome sits on gives owners the ability to landscape and decorate the outside of the home.
Townhomes have homes attached to one or both sides of the unit, so lack of privacy remains an issue. Similar to condos, you are subject to board rules. Since townhome communities typically have uniform exteriors, an owner’s ability to make exterior material updates or paint selections can be limited.
From a financial standpoint, you will experience the same HOA fees that condo owners’ have and a slightly higher insurance rate since you will be insuring both exterior and interior spaces.
Single-family homes offer more space and privacy than condos or townhomes. Owners have a greater sense of ownership since they can make decisions when it comes to home improvements, paint colors and expansions.
Typically, single-family homes retain a higher resale value than condos or townhomes, and owners pay few to no property management fees. HOA fees may still come into play depending upon the neighborhood. Owners are fully responsible for all maintenance and upkeep of the home. This includes the cost of landscaping, lawn upkeep and any unforeseen home repairs.
Do you know which type of home you want? Contact a loan advisor today to make your homeownership dreams a reality.