Should You Buy a Condo or a Townhouse?

Buying a home can be a stressful process, and all of the complicated real estate lingoes can make things even more confusing, especially for first-time homebuyers. If you’re in the market for a new home, there are a lot of considerations that must be weighed in before making the decision. More often than not, people confuse condominiums with townhouses. In reality, the two are different in several ways, including their physical appearance, maintenance costs, and even their location. Each type of housing has pros and cons—for your budget and your lifestyle. In this article, we will discuss it further. At the end of this page, hopefully, you'll be able to decide which one is best for you and your family. 

The Basics: Condo vs. Townhouse

What is a Condo?

Condos or condominiums

A condo, or condominium, is a single-residential unit that’s housed within a larger building. It's similar to an apartment in that it’s an individual unit residing in a building or community of buildings. But unlike an apartment, a condo is owned by its resident, not rented from a landlord. Condo layouts vary by building, but most buildings have several units per floor, so you may have other units above, below, or next to you. They can be found anywhere, from luxury high-rises in urban areas to residential buildings in suburban areas.

What is a Townhouse?

Townhouses

A townhouse is a cross between a single-family home and a condo. It's an attached home also owned by its resident. One or more walls are shared with an adjacent attached townhouse. Think rowhouse instead of an apartment, and expect a little bit more privacy than you would get in a condo. They’re typically two or three stories tall and share walls with the next-door properties, but they don’t have any units above or below them. Townhouses are often a popular option for first-time homebuyers and young families, and they can also be found in age-restricted active adult communities.

Key Differences: Condo vs. Townhouse

1. Ownership

Condominiums or condos are a type of real estate ownership. You are essentially buying the inside of the individual units along with a fractional co-ownership of any common amenities, things as recreation centers, pools, tennis courts, etc. 

While Townhouse owners actually own the land the home is built on along with the home itself. In many cases, you will have a front yard and a small yard or private outdoor space in the back of the property that you own as well. The amenities and common spaces are owned by the homeowners’ association but used by the residents. The homeowners are responsible for maintenance as well.

2. Amenities

Another difference between a condo and a townhouse is the amenities and common spaces that they offer. Amenities vary by community or building, but most condos have great amenities, like pools and gyms, that residents can share. 

Typically, townhouses have fewer amenities than condos, but some new construction townhome communities actually have more. Most townhomes have a clubhouse, playground, pool, or other amenities. However, many new construction townhomes, especially in age-restricted active adult communities, have resort-style amenities. Some even have tennis courts and private gyms that offer group fitness classes.

3. Privacy

Privacy is another key difference between the two home types. Owners of condos or townhouses typically have less privacy than owners of single-family homes. However, this comes with the benefit of living in a type of property that’s easier to maintain.  

4. Homeowners Association Fees 

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. Typically, townhouses have lower HOA fees because they often require less maintenance and have fewer amenities. However, that doesn’t mean you’ll always pay less to maintain a townhouse. if you aren’t paying HOA fees for the maintenance of your townhouse’s landscaping or exterior, you’ll still be responsible for paying for that maintenance when it’s needed.

5. Resale value

There’s no such thing as a sure investment. The resale value of your home, whether it’s a condo or townhouse 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 townhouse properties. Newer, updated spaces often command a higher value than an outdated spaces. This is true for condos as well as townhouses. However, outside of the home itself, condo owners must also be aware of their common area finishes, and if they are as modernized as their condo or not, which could impact value.

Bottom Line:

Despite all of the differences between condos and townhouses, these types of homes share many similarities and are both great options, depending on what you’re looking for. Like anything real estate-related it takes a little knowledge and homework to find the right fit. 

If you’re thinking about buying a home, connect with a real estate agent who can help you through this process. You may call me at (425) 299-5235 or send me an email at jsimmons@northpacificproperties.com. Looking forward to helping you out in your home-buying journey!