Condo vs. Townhouse: Which Is Right for You?

Condo and townhouse housing is enticing. It's particularly so in urban areas where neighbourhood restaurants, coffee shops, and shopping centers are only a short walk away!

Maybe you're a first-time home buyer seeking an excellent spot at a reasonable cost. Or perhaps you're tired of the stress of getting a bigger home and are ready to downsize! In any case, the idea of living in a condo or townhouse has you excited.

You might be thinking: Do all townhomes have HOA? Is one larger than a different one? What's the difference between a condo and a townhouse, anyway?

And they are all terrific questions! We'll clarify the differences between condos and townhouses, and we'll help you regulate the advantages and disadvantages—including the expenses of each!

What Is A Condo?

First, what is a condo? A condo (short for condominium) can be defined by its kind of ownership. Condos typically reside in a structure with identical units side by side, similar to an apartment building. The difference is that you own the inside of your apartment instead of simply renting it.

The rest of the building is shared by every resident, who pays fees to the homeowners association. The HOA offers essential upkeep and insurance for everything outside your home. This comprises the structure, landscaping, and shared facilities like swimming pools or leisure halls.

What Is A Townhouse?

A townhouse (sometimes known as a townhome) is an example of architecture. It's a multilayer focus that shares walls with adjacent residences on one or both sides. If you own a townhouse, you own its interior, exterior, and the land on which it is situated. So you have more freedom—and responsibility—over how you utilize your property.

Townhouses, like condos, tend to be subject to HOA fees. However, with a townhouse, the HOA costs only cover communal features and privileges, not the townhouse's facade.

What Is the Cost of Owning a Condo Vs a Townhouse?

Now, let's say things regarding money. A townhome generally has a higher listing price than a condo because of the extra living space.

As with any portion of real estate, the requesting cost of a condo or townhouse does not convey the complete picture. For instance, a condo mortgage naturally has a higher interest rate than a townhouse mortgage. But does this render the townhouse a better deal? Not necessarily. It all hinges on your needs and money.

To get a better idea of the cost of owning a townhouse vs a condo costs, examine home insurance, property taxes, and HOA fees.

What are the advantages and disadvantages of living in a condo vs. a townhouse?

To summarise, condos often have lower list prices, house insurance, property taxes, and upkeep costs than townhomes. However, they can make up with higher HOA fees and mortgage rates.

However, money is not the only consideration when making a purchase. Make sure you consider these benefits along with their drawbacks.

Pros of condos

• More living together. You'll always see other people in a condo since you share the same building hallways and exits, gym, trash storage, parking spot, mail room, and so on. Some HOAs even host distinctive social events that provide multiple chances to make new friends.
• More assistance from your HOA. Your condo organization is in charge of the building's services and upkeep. Have difficulties having your items delivered? Want to start recycling? Call your homeowner's organization. They are the ones who hire the front desk clerk and select what amenities to provide.
• Reduced household upkeep. You'll have to take care of the inside of your apartment. But what about exterior repairs, yard maintenance, and pool cleaning? The HOA will hire people to do that.

Cons of Condominiums

• Less privacy. If you are a private or introverted person, you may not enjoy the close quarters of a condo. Especially since you may have neighbors above, below, and on both sides of you. (Pro tip: Ask regarding the depth of the walls and floors, and pay attention to what you hear during your walk-through. This will give you a better idea of how soundproof the walls and floors are.
• Additional interactions with your (possibly faulty) HOA. Your HOA is only as good as the people who manage it. If your HOA is made up of jerks who act like they're still in high school and have no idea how to manage money, prepare yourself for constant disappointment.
• There's less space. Your condo's interior will likely be less than a similar-priced townhouse, and you will not have any private outdoor spaces. So, if you want to host a cookout for your friends and family, you might have to deal with the HOA to reserve a community space—and they may charge you a fee.

Pros of townhouses
Okay, so we've discussed the advantages and disadvantages of condos. What about the townhouses? Let us take a look.

• Increased privacy. Do you want to live in your own home, not just down the hall from Mr. Jones? Do you like the freedom to leave your house without running into Mrs. Green, who will inevitably tell you a 20-minute story about her dog? If you're looking for more of a home than an apartment, a townhouse is probably more your style. Again, check how soundproof the walls are to enjoy the quiet.
• More space, but not too much. Most townhouses have more places than condos, and they typically have yards that enable you to relish the outdoors while offering additional space for kids and pets to run around. A townhome would be a prodigious choice if you need more space than a condo. But the yard (and the townhouse itself) are still smaller than a detached, single-family home, requiring less cleaning and lawn care. Score!
• You will have less interaction with your membership. Don't get us wrong: HOAs can be highly involved in townhouse life. They are not as engaged as in condo communities. As a result, you may face fewer regulations and fees.

Cons of Townhouses
Townhomes offer an excellent balance between apartment living and owning a detached home. But they are not perfect. Here are some drawbacks to keep in mind.

• There is less connection. In a townhouse, you may effortlessly isolate yourself. Going to community events or getting to know your neighbors might take extra effort. Otherwise, you may feel disconnected from your community.
• Increased home maintenance. More space corresponds to more potential problems. And it will be up to you to resolve them. If you cannot handle home maintenance independently, you could ask whether the HOA has a list of recommended plumbers, contractors, etc.
• You still have a HOA. You can communicate with your HOA less than you would in a condo, and they will have little say in any renovations you make to your home. But you are not entirely off the hook. They will be mindful of anything you do outside. So, before you replace your mailbox with one that reflects your unique style, check with the HOA!

How to Choose What's Right for You

Some features to mirror when evaluating your possibilities involve the size of your family, your budget, whether or not you have pets, your way of life, how far cleaning you want to do, and (last but not least) the city where you want to live.

While all three types of homes can be found in nearly every part of the country, the price and square footage will undoubtedly differ depending on location. For example, your Zillow searches will be very distinct if you are looking for a townhouse in New York City versus Dallas. While the Big Apple has its fair share of massive homes, townhouses in NYC are generally smaller and (you guessed it) more expensive than those in Dallas.

The rewards of owning a home over renting include tax breakdowns, the skill to build equity, and a place to call your own. Also, the current real estate and mortgage financial markets offer a perfect opportunity to transition from paying monthly rent to investing in your home. If you see owning a townhouse, you may be inquisitive: Do all townhomes have HOA? Empathetic HOA fees and their influence on homeownership are essential to your choice-making process.