What is the difference between condo and townhouse

Why join a gym when everything you need is just steps from your front door. Another benefit is a sense of community, especially for people that like social interaction. There are downsides to condo and townhome living. To start, this type of community provides much less privacy than a single-family home.

The common walls mean you're most likely to hear noisy neighbors and your neighbors are most likely to hear you. Rules, regulations, covenants, and restrictions are a big part of living in a condo or townhome community. These rules are in place to make the community more appealing to a wider range of people. While many of the restrictions may seem a bit much for some, they are appealing to others.

This goes for single-family homes with an HOA and especially condo and townhome communities. When you close on the property, you agree to adhere to the rules, covenants, and guidelines of the community. Failure to abide by these guidelines can result in warnings, fines, and in some extreme cases property liens or a cloud on the Title. Pet restrictions are another disadvantage to living in a condo or townhome community. Homeowner associations will often implement breed restrictions as well as weight restrictions.

Limited parking is another drawback to condo and townhome living. Most condominiums will have limited parking options consisting of carports or outdoor parking in assigned spaces.

Some condos do come with a garage but these are rare. Townhomes are similar in this regard, while townhomes are more likely to come with a garage, it will most likely be a one-car garage, fine if you only have one car. If you are the type of person that requires multiple cars, this is something to consider before buying. Storage is another consideration when buying a condo or townhouse.

This one is similar to the parking issue. While both condos and townhomes will most likely have storage, it is limited.

If you need to pay for that storage, this expense can quickly eat into any savings you realized by purchasing a condo or townhome. Fees are another financial consideration when looking at any community that has an HOA. These fees go to cover the cost of maintaining the community as well as the amenities enjoyed by the residents. These fees can add up and eliminate any savings advantage you thought you were realizing by buying a condo or townhome.

In many cases, the advantage you realize in a lower payment can be eliminated by high fees. These fees are generally implemented when the costs of improvements exceed the amount of money in the reserve fund. Special assessments are a very controversial subject because they generally result from poor planning and lack of foresight about the condition of the property and the state of the reserve funds.

If you are considering purchasing a condominium or townhouse, there are a number of things you need to keep in mind as you proceed. One of the most attractive aspects of purchasing a condo or townhome is consistency in pricing.

Because the units are so similar, pricing is easier to deal with than in a single-family property. Because there is minimal variation between units in these communities, pricing is more consistent. It doesn't matter if you're buying a condo vs townhouse, you are Buying into a covenant-controlled community. This purchase is accompanied by certain expectations and adhering to the covenants is one of those expectations.

When you close on the property, you are agreeing to adhere to those covenants. The penalties for failing to adhere to these rules can start with a simple warning followed by potential fines and in some extreme cases end with a lien on the property. No one wants to go through this experience. So, before you close on a property with an HOA, read the governing documents. Talk to the current residents and find out what the hot issues are.

You want to make sure you are buying into a well-run community. Make sure there are no big issues that might require a special assessment.

Owners ultimately pay for upkeep, repairs, and maintenance so you want to know if a big expense is looming before you close on the property. Another thing you can learn from the current owners is how the board and management group deal with owners and their requests. The relationship should be cooperative and respectful. If the relationship is adversarial, you will want to proceed with caution. When we compare financing for a condo vs townhouse, the process is similar to financing a single-family home, the only real differences that affect condos vs townhouses.

Since condominiums offer more risk for the lender, the interest rate will be a little higher. With proper planning by homeowners in the community, those fees become investments into the livelihood of the property and the units themselves. Neighbors rely on each other as a collective to keep the neighborhood moving forward, especially during tough economic times.

A well-managed and maintained townhouse or condo community can give an owner the leverage they need when selling their unit, reducing the amount of time the property sits on the market. A successful community is also the key to holding value during an economic downturn. This rings true for both condos and townhouses. Condo and townhouse communities can be up close and personal with neighbors.

Whether your homes are physically attached or not, living in a townhouse or condo community gives you the opportunity for more socializing. Need a cup of sugar, perhaps? Want to meet in the lounge for a cup of joe?

Many developments also factor security into their budgets. Then there are the perks of shared costs for things like lawn maintenance and going to the board with neighborly disputes, instead of the tool shed — kidding.

We know that condo owners typically pay higher HOA fees because of their ratio of shared space, while saving on supplemental insurance. At the end of the day, a condo might be less expensive than a townhouse, but the money you save might not be much, if any, when you factor in HOA fees. Although HOA boards act on behalf of their members, they do have the authority to push repair projects and, with approval, can enact one-time fees for repair projects.

The next risk to consider is in resale value. Many new developments are being built more efficiently and offer low initial prices to stay competitive with other properties. This means that as your unit ages, you may be competing with newer and less expensive developments. Something to consider when making the investment.

Finally, there is the community lifestyle. This is a double-edged sword. Besides physically sharing walls — and even floors and ceilings — everyone is living in close proximity.

The truth is, condos and townhouses share so many similarities that the smallest differences can become defining factors. The biggest when weighing a townhouse versus a condo is you and your personal preferences. But remember, your influence can help make a community successful.

So, consider how you can contribute — whether you serve on the board, become a vocal and well-informed HOA voter, or at the most basic level, just read and consider your contracts carefully and understand your obligations. All that being said, condos vs.

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We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Alternative Investments Real Estate Investing. Table of Contents Expand. What Is a Townhouse? What Is a Condo? Condo vs. Townhouse vs. Who Should Buy What. Key Takeaways Townhouses, which are generally attached to other residences, are defined by ownership—which includes the land the home is situated on, front and backyard areas, and the home's exterior.

Condominiums provide the most hands-off approach to homeownership and are physically indistinguishable from rental apartments. Condos are often cheaper than townhouses because they come with no land; the exterior and land are considered common areas shared by all residents.

Condo owners pay monthly homeowner association HOA fees that can be significantly higher than those on townhouses, partly because they cover exterior maintenance. Detached homes often provide owners with the most freedom when it comes to improving the structures or the land that comes with them, but they may lack many of the amenities of condos and townhouses.

House: Key Differences Condominium Townhouse Detached House Initial cost Often the least expensive housing option Typically less costly than a detached house Prices range widely by size and location Ongoing fees Monthly dues to homeowner association Monthly dues to homeowner association Generally none What you own Your individual unit, but not the land or other common areas Your home plus the land it sits on and possibly a yard Your house plus the land under and around it Amenities Condos often have shared amenities like a swimming pool or fitness club May also have shared amenities like a swimming pool or fitness club Amenities depend on what was there when you bought or have since added Responsibilities You aren't responsible for mowing the lawn or other upkeep You aren't responsible for mowing the lawn or other upkeep Lawn mowing, snow removal, repairs, etc.

Related Articles. Partner Links. Condominium Condos or condominiums are housing units in a large property complex that are sold to buyers. While apartments are generally rented, condos are owned.

A homeowner's association HOA makes and enforces rules for a subdivision, planned community, or condominium building; its members are residents. Landominium Landominium refers to a unit, built as part of a residential development, whose owner owns both the unit and the land on which it is built.