Should I Buy a Townhouse or Single Family Home

Over the past year, more millennials have entered the housing market place as first time homebuyers than any other demographic. Because this generation tends to prefer active urban living, and prioritizes luxury fixtures over square footage, townhomes and condos seem like natural, logical options for an affordable first dwelling.

Condos and townhomes (divergence between these two vary by definition, just they generally mean the same thing) offering starting time-fourth dimension homebuyers an affordable manner to invest in homeownership, especially in vibrant urban environments. Notwithstanding, you're a immature, first-time homebuyer, so before you call your agent and tell them you lot never want to tour a single-family domicile once more, review all the pros and cons of buying a condo or townhome as your first home.

Pros of Ownership a Townhome as a First-Time Homebuyer

• Great locations and easy admission to urban living
• More affordable prices
• Lower renovation costs
• Lower utility bills and insurance costs
• Low maintenance living and shared amenities
• A strong sense of community
• Safer living environment
• More than freedom, plus equity

Condos and townhomes have many benefits for first time homebuyers, including corking locations and more than affordable pricing. According to Sarah Boggs, a realtor selling condos in downtown Miami, condos and townhomes in urban nerve centers are in demand with home shoppers because of, "The proximity of work and fun besides as amazing views and amenities in the buildings." For home shoppers looking to buy their outset domicile in a hot real estate market, condos and townhomes can help them save money. Phil Evans, buyer specialist with Keller Williams Realty, establish that in San Francisco, condos cost on average $100,000 less than unmarried-family unit homes.

At that place are ongoing financial advantages associated with these housing options, as well. Toll-conscious first-time homebuyers tin save money while living in a condo or townhome when comparison the costs living in a unmarried-family home. A combination of shared renovation and maintenance price with lower utility bills brand life in a condo or townhome easy and affordable for buyers who practise not want – or financially can't – shoulder the full burden of managing the upkeep associated with a single-family dwelling house.

With condos and townhomes, a homeowner's association, or HOA, is financially responsible for repairs and upkeep. HOA fees may additionally cover city services, lawn intendance, pest command, and insurance. The simplicity and ease the this maintenance model provides tin can be swell for get-go-time buyers and retirees. Along with peace of heed when it comes to emergency repairs and ongoing maintenance, buying a condo or townhome alleviates the brunt of yard work and landscaping. You lot as well won't have to worry about snowfall removal or cleaning the puddle.

The purchase of a new townhome or a condo could mean admission to extra civilities. Oft these communities will have a swimming pool, spa, fitness center, covered parking, common areas, and gated security. For many younger buyers, these features would be unattainable when ownership a single-family home. Retired empty nesters may also love being able enjoy the maintenance-gratis puddle with their grandchildren.

"In that location is as well a sense of customs present in condo communities that is not e'er nowadays in other communities," says Rodney Fentress, a real estate professional at Keller Williams. These communities have intangible benefits in addition to the money they save homebuyers. Townhomes foster a shut-knit sense of belonging and safety thanks to shared amenities — and the thought that your neighbors are your friends who take your dorsum when you proceed vacation.

"Everyone likes privacy, but most want to feel like they are close to help, activeness (the buzz of downtowns), and work. Condos oft provide this feeling," says Evans. Buying a condo or townhome as your first home allows you to alive in your ideal location while saving money and becoming function of a secure, caring customs.

Owning a condo is very similar to renting an flat, except that the owner has the freedom to change their unit as much equally they like, every bit long every bit it's within the written standards set forth by the customs. Dissimilar renting, however, the buyer builds equity with their investment. This equity comes in handy when it'due south fourth dimension to purchase a larger abode in the futurity. Therefore, it makes a bang-up stopgap solution for the first-time homebuyer who is nevertheless preparing for the added costs and responsibilities of a single-family unit dwelling house.

Cons of Ownership a Townhome as a Kickoff-Time Homebuyer

• Home shoppers oft need college down payments
• VA and FHA loans are not generally available to home shoppers interested in townhomes
• Units do not appreciate every bit quickly and lose value when markets shift
• Must account for homeowner associations and fees
• Boosted maintenance fees
• Shared walls

Just like whatsoever type of house, condos and townhomes are not always the best dwelling house plans for all homebuyers. "Many people don't realize that financing is more difficult when you buy a condo and the heir-apparent typically needs a larger downwards payment," says Boggs.

While condos and townhomes cost less overall than a traditional single-family home, home shoppers typically demand higher downwardly payments to get loans these smaller homes, and generally cannot employ VA or FHA loans to these types of homes. If you are thinking about buying a condo or townhome equally your first home, there are still assist programs bachelor to outset-time homebuyers, just be ready to navigate a more complex financing process and save for the higher downward payment.

First-time homebuyers should pay attending to the divergence in appreciation rates between townhomes and unmarried-family unit homes, too. Townhomes and condo units do not appreciate as fast as single-family homes, and can lose value faster when the housing market value shift downward. Take some time to understand your existent estate market before investing in a new condo or townhome, especially if you plan on selling the house in a few years.

Owning a condo or townhome can cut maintenance and utility bill costs, but showtime-time homebuyers must account for condo and townhome association fees when calculating their monthly bills. In addition to monthly HOA dues, which go toward maintaining the edifice, grounds, and amenities, residents sometimes have to pay special cess fees for unexpected costs, like roof repair. When deciding on what y'all can beget in a condo or townhome, factor in HOA dues and requite yourself some jerk-room in your budget for special assessment fees.

Near of the cons of buying a condo or townhome as a first-time homebuyer stem from a financial arrangement that can have more layers than what's associated with buying a single-family home. In that location can also be some issues with sharing walls with neighbors. Thankfully, most new townhomes are built so owners don't have to worry about overhearing their neighbors.

Home shopping as a first-fourth dimension homebuyer can seem hard, but deciding if yous want to live in a new townhome tin brand your home search easier by narrowing downward the available housing market options. As you shop for your get-go home, keep your needs and lifestyle in mind before deciding to invest in a townhome, condo or a single-family home.

If y'all are looking to buy your first new home, let us know if you would buy a condo or townhome, and why or why not, in the comments below.

After graduating in 2016 from The University of Texas with a degree in English, Sanda Brown became a content author for the BDX with a focus on website re-create and content marketing.

At the BDX, Sanda helps write and edit articles on NewHomeSource.com, writes website copy for builders, and manages a team of freelancers that work on additional content needs.

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Source: https://www.newhomesource.com/learn/pros-cons-buying-condo-as-first-time-buyer/

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