Investing in Condominiums and Townhomes

Condominiums and townhomes are ideal for potential buyers that little time to spend on yard work.

TOWNHOUSES

Townhouses are connected by shared walls and common driveways.  These days, they can be lavish, large and individual, with open floor plans and elevators.

Pros of townhome living include a community with neighbors. Also, many communities offer amenities like gyms, pools, golf courses and spas as part of common charges or available for an annual fee.

Cons of townhome living include attached units or clustered together so it may feel cramped. Landscaping and yard maintenance is often the individual’s responsibility. Common areas are usually cared for by the community. Your townhome is part of a greater whole. Residents are often responsible for assessment to fund repairs of parking areas, exterior painting and other maintenance tasks for common areas.

CONDOMINIUMS

Condos are usually similar to apartments but you own it outright. Like a single-family dwelling, and unlike a co-op, you own a deed to your condo. Condominiums have neighbors typically by common walls, floors and ceilings. Residents share common areas like the lobby, party room and other amenities.

Pros: You own your place and do what you’d like, within the confines of your condo association rules. There’s no yard to mow or exteriors to paint. Condos are usually more affordable than single-family detached homes and have offer amenities.

Cons: You pay monthly homeowner’s association (HOA) fees to fund maintenance, common-area repairs, insurance and a contingency fund. You have association rules to follow, which can control everything from how you pitch your trash to what furniture you’re allowed to place on your balcony. And like any unit that shares walls, privacy may be an issue.