The townhome vs condo argument is an interesting and often contentious discussion with different opinions on each side. The advantages of these two special real estate types really depend on the surrounding environment as well as the internal layout. Here are the basics of the townhome and the condominium so that you can make an informed decision about your next property choice.
What is a townhome?
A townhome or townhouse is a non-uniform unit that is meant to be as close to an unattached property as possible. The property is considered a multiunit structure, but the units seem detached as a living space and from the curbside view.
Townhomes are often confused with twin homes, duplexes, and triplexes. Officially, a townhome has one property per lot. A twin home, duplex, or multiplex may have multiple units on a single real property structure. This has many implications for the responsibility of the townhome owner and accounts for much of the limitation in the responsibility of the homeowner’s association (HOA), a topic that is covered below.
What is a condo?
A condo is an individual unit that is attached to a larger real property and apartment complex structure type. The condo is owned by an individual while the connected resources are owned jointly by all homeowners within the structure and managed by an HOA.
The word condo is short for condominium, a real estate property type that is often confused with an apartment and a co-op. These terms are used interchangeably in informal speech; however, they have definite meanings to the real estate professional, and the official meaning may affect your buying choice.
What are the shared advantages of condos and townhomes?
The major advantage of condos and townhomes is the feeling of living in an independent structure without the expense of dealing with the outdoor maintenance. Condos and townhomes are usually both managed by an HOA that handles the maintenance of the exterior property and the community resources. The ownership structure of both the condo and the townhome are independent, meaning that the owner has autonomy and responsibility within the domicile even though the larger structure that contains it may be communal property managed by an HOA.
What are the differences between condos and townhomes?
Although both types of housing are usually managed by HOAs, townhomes may have more independent autonomy and responsibility. The law requires that condo HOAs be responsible for certain common resources; there are many less legal requirements for a townhome. Check with the terms of your townhome to see exactly what the HOA covers and what you are responsible for.
Condo owners should also be careful of where the line of private ownership stops: In some condos, attached porches are actually not included in the definition of the private domicile. This does reduce the responsibility of the owner for upkeep; however, many HOAs will try to circumvent this responsibility, banking on the ignorance of the owners.
Because townhomes usually cover less of the communal resources, their HOA fees are usually lower.
There is also an aesthetic difference between the townhome and the condo. In most cases, the condo more resembles an apartment while the townhome looks like a multilevel home.
Should I pick a townhome or a condo?
The major difference between the townhome and the condo is not the architecture; it is the lifestyle that both structures cultivate.
The pricing between townhomes and condos is fairly similar, with both property types selling for approximately the same range of prices in similar neighborhoods and locations. Any difference in pricing usually comes from the prestige that is associated with the neighborhood rather than the type of layout that a unit has.
However, townhomes tend to appeal more to families, while condos tend to appeal more to young professionals and couples without children. Condos tend to be built in much larger structures, with many complexes containing dozens of floors. These complexes more easily accommodate common areas. The horizontal nature of the townhouse tends to limit the amount of units that can be incorporated into a single development. Common areas are also harder to consolidate, meaning that there will be less people in the average townhouse super structure than in the average condo super structure.
Both condo and townhome owners pay property taxes, but only the townhome owner has real property under the domicile. This may be a point of contention for people who actually want to own the land underneath their feet, although it is usually just a cosmetic legal point.
Townhouses usually offer a more private lifestyle. With a condo, you may have neighbors on eight sides of your unit, while a townhouse usually has a max of two. The lower number means less noise, although the thickness of the common walls has a lot to do with this as well.
A great deal of your experience in a townhome or a condo will have to do with your HOA. No matter which layout you choose, make sure that you go over the cash flow and the terms of the HOA that will govern the larger area. Do not be afraid to ask for references and talk to current residents in the building. No matter how incredible a property you see from the curbside, there are always issues to deal with on the inside. You want the condo or townhouse property with the least amount of them.
2 Point Highlight
Condos and townhomes are usually both managed by a homeowner’s association (HOA) that handles the maintenance of the exterior property and the community resources.
Condo owners should also be careful of where the line of private ownership stops: In some condos, attached porches are actually not included in the definition of the private domicile.
