Single-Family, Condominium, Townhome And Multi-Family - You Have Lots Of Choices For Your Next Home!
Housing Options
Home buyers just starting to look for a new home have several options that they should consider. While what comes to mind for most people when they envision a new home is the traditional single-family, prospective buyers should really give some consideration to their needs, wants and financial situation in regards to what type of property they buy.
Single-Family Homes
The traditional choice of buyers that need room to spread out. By definition, a single family home has its own land and structure. The owner is responsible for paying all the taxes and insurance as well as doing all the maintenance. Because in most developed areas land is the major component of a property's price, single-family homes are the most expensive. Some neighborhoods have opted to have a homeowners association (HOA) to ensure that homes are maintained and common areas are kept up. Homes in HOAs are subject to a variety of 'community rules' that a buyer should read very carefully! Of course, every home in the HOA will have a yearly fee to cover all the costs incurred so those should be considered when estimating total costs for owning a home.
Condominiums
At the other end of the scale are condominiums. These maximize the amount of living area on a piece of land, while sacrificing privacy and yard space. Normally dues are paid monthly to cover the water, sewer and garbage service as well as the taxes and normally increase about 5% per year. All the exterior maintenance is taken care of, but condo buyers should be aware that major repairs to a condominium complex is split evenly amongst all the owners. It is best to buy just after big maintenance projects are completed and sell prior to them happening. As with HOA's, condominiums have CC&R declarations, which stipulate what can and can't be done with a condo and in the common areas. These can vary from fairly lax to near draconian so again, be sure to read the CC&R declarations very carefully! The up side of condo life is the ease of it all. There are no lawns to mow, gutters to clean, or paint to fix. Of course you still have to maintain the inside of your own condo unit, but this is generally much easier than with a single-family home. Also, the price of condos can be attractive to home buyers on a budget. Because several units occupy the space that a single-family home would take up, the price of a condo can be significantly lower and hence affordable to many buyers.
Townhomes
Somewhere between a condo and a single-family home is the townhome. Normally these are defined as one living unit adjoined on two walls by other units, though there are exceptions. Townhome owners generally own the structure itself up to the adjoining walls, and the land it sits on, normally including the front and back yards. Townhomes offer home buyers a definite compromise between the extremes of single-family homes and condos. Each townhome unit is taxed separately but there is usually an HOA to coordinate and pay for the upkeep of any common areas.
In some areas developers are building 'detached townhomes' which in effect are single family residences placed VERY close together, usually within 10'-12' of the exterior walls. These offer slightly more privacy, but still maintain a slightly lower price point because of the density of homes.
Multi-Family Properties
For industrious home buyers, the multi-family structure should not be overlooked, though it often is. In many places the price of duplex, tri-plex and even four-plex properties is not significantly more than that of a single family home of comparable size, and this offers home buyers a great advantage. By purchasing a duplex property for example, the new owners can live in one unit, rent the other out, and subsidize their house payment. There are tax advantages as well that home buyers should consult their accountants about.
Loans for multi-family properties such as these are also financeable through normal means, and even via FHA loan programs. For the added work of having tenants for neighbors, home buyers can significantly reduce their net monthly payment.
Consider Your Options Before Shopping!
As prospective home buyers, you should talk with your agent before shopping and discuss what home types fit your needs and lifestyle, as well as price range. Your real estate agent should be able to suggest several options for you that fit your criteria both in space, maintenance and location.
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