Deciding which type of home is best for you – house, condominium, townhouse or apartment – can be a struggle. Each type has its own benefits and drawbacks, it all depends on your life and specific circumstances. But it’s best to know the differences and how it will align with your life before making the decision.
Differences Between House, Condominium, Townhouse and Apartment
This option offers the most privacy and freedom of the 4 different options. You have more opportunities to personalize your space. You don’t share a wall like you do with a condo, townhouse or apartment. Additionally, the outdoor space is usually the largest of the 4. On the down side, a house is situated on its own lot which leaves you with the responsibility of maintaining the lawn and structure. Also, purchasing a home has the most cost upfront with a down payment, closing costs, and other homeowner fees.
A townhouse is typ4ically a multi-leveled & narrow structure that connects to others in a row or block. The building has a small parcel of property either in the front or the back. This option offers a mix of both a house and condo, which may be the best of both worlds for some. Similar to a house, townhouse owners are responsible for some maintenance and repair. HOA fees are generally lower than that of a condo since there are less shared amenities.
A condominium or condo is an individually owned unit of a larger structure. A condo is generally less expensive than a house or townhouse due to their smaller size and they come with no land. However, with a monthly mortgage payment combined with HOA fees, the cost of living can increase. You are only responsible for the inside of your unit which means less maintenance responsibility. The outside of the unit is considered the common area and ownership is shared with all the condo owners in the building, which means less privacy. As a condo owner, you will live in close proximity to others including sharing certain amenities.
An apartment is similar to a condo in that it’s a unit inside a larger building. The largest difference than the other 3 options is that apartments are rented rather than owned. You may get similar amenities as a condo, but you only pay monthly rent to the landlord. Because of that you won’t be building equity to use in the future. Renting an apartment is likely the least expensive option, especially since you won’t be paying monthly HOAs. You must rely on the landlord for all maintenance inside and outside of the unit. The space is not yours to personalize and may be required to leave after your lease is up.
Will It Work For Your Life?
Purchasing a house is the best option for those who would like to invest in their financial future since you will be building equity. Additionally, it will give you the opportunity to put down roots and the space to start or grow your family. You will have the security of knowing you can handle significant life changes. The privacy and freedom to personalize your space as you please.
For those that would like more space than what a condo or apartment can offer but aren’t yet ready for owning a home, this is a great between option. It’s ideal for homeowners who don’t want the responsibility of maintaining a large home and yard. It could be a great fit for those looking to get out of renting in a large metropolitan area to owning their own home in a more residential area.
If you’re looking for a low-maintenance residence with shared amenities and a strong community feel, this would be a great fit. They are typically located in more of a metropolitan area with access to shopping, dining and entertainment. This will allow for a shorter commute than in a suburban area.
An apartment is a smart choice for those who don’t want the responsibility of home ownership just yet. It would be a stepping stone into living on your own, knowing that you are not yet building equity. Also, it would be good for those who don’t plan to stay in one area long-term.
Ultimately, you will need to do what feels right for you and your situation. But we hope to have helped in making a decision in the right direction. No matter what type of home ownership you are looking for, we are here to help. Feel free to contact us with any questions!