First Time Home Buyers: House, Condo or Townhouse?

Posted by on Tuesday, December 20th, 2016 at 1:07pm.

Trying to decide what type of home to buy can be daunting for a new home buyer, particularly when you don’t know what your life might look like a few years down the road. Let us help you narrow down the potential possibilities by looking at the advantages and disadvantages of all the options.

Townhouse

What makes a townhouse a townhouse? First off, a townhouse is attached, sharing at least one common wall with another, similar-designed home. And, living up to their name, townhouses are usually clustered in core areas within a city, directly within all of the hustle and bustle. Because of their close proximity to downtown, they generally have less yard and square footage than detached single-family homes. This can be a bad thing for some, but for small families or someone who doesn’t want a lot of upkeep, a townhouse can be a perfect solution. This is usually not the best choice for older folks, as many townhouses have multiple levels with a lot of stairs.

Advantages: Close to city center, less yard maintenance, owning the land your home sits on
Disadvantages: Sharing common walls, potential HOA fees, decreased privacy, less space, usually multiple levels

Condo

A condominium is a hybrid between an apartment and a house which offers many of the same advantages (and disadvantages) of apartment living. For a first-time homebuyer, this could be a natural transition. Condo living is a great choice for young professionals or older folks who don’t have the time or energy for maintenance, but would prefer to pay the HOA fee for someone else to handle those things. Condos also tend to come with added bonuses like pool, workout facility, penthouse for event rental, etc. Depending on the condo, this can be a cheaper option than a detached house or townhome. Just prepare for significantly less space and the potential of having to pay for an additional on-site storage space as well as a parking space.

Advantages: Close to city center, walkable to restaurants and retailers, maintenance-free, building amenities, sometimes great views
Disadvantages: Monthly HOA fees, close to neighbors, no yard, lack of guest parking

Single-Family Detached Home

Location is the most important thing in choosing a home. If you can find a single family home in the location you want to be, then it could be a great option for you. While condo dwellers pay an additional HOA fee every month, you can put that money toward your mortgage. Just be prepared that with home ownership comes great responsibility. You’ll have to set aside funds to cover any major issues that might arise, as well as money to cover monthly expenses like landscapers (if you choose to not do it yourself). A single-family home will likely give you much more space to grow your family, which can be the deciding factor for some. Just be prepared that more space means more cleaning and upkeep.

Advantages: More space, yard, privacy from neighbors, no HOA fees, equity building, tax breaks
Disadvantages: Yard work, general home maintenance responsibilities, longterm commitment