Want to Know a Secret?
A study done by Trulia relieved that the condo market climbed by 38.4% from 2012-2017. Single family residences however, only rose by 27.9% in the same time frame.
With more people interested in condos and townhouses, it’s important to understand the differences.
It’s true that condos and townhouses share many similarities and the differences aren’t so apparent. Some condos and townhouses even have similar structure setups.
How much do you really own?
The difference between condos and townhouses is the ownership rights of the unit owners. An owner of a condo has ownership rights of the interior of the structure and the airspace of the lot. An owner of a townhouse owns the structure of their unit, the land on which the lot sits on, and the airspace of the lot.
However, it is important to note an owner of a condo does not own the ground on which the unit sits on, nor the structure itself.
That’s not all…
Although not written in stone, there are some differences between the layout of condos and townhouses. Condos come in many different styles such as high rise buildings and 2-3 story units. Most are attached to the same building as their neighbors, similar to apartments. Also, some condos may have an upper unit or a lower unit where a neighbor occupies.
Townhouses on the other hand are a condensed single family residence. They usually share a wall with neighbors and the building has a row of units. Unlike some condos, a townhouse usually has two stories. In this sense, townhouses are usually referred to as a style of structure as opposed to a type of ownership like condos.
Home Owners Association explained
Unlike a regular single family residence, both condos and townhouses come with a home owners association. The home owners association manages and performs maintenance for the community that units reside in. Some responsibilities include gardening, irrigation, and repairs to the community.
Here’s the catch.
Being a part of a home owner’s associate means that owners are subject to rules and regulations as well as paying HOA assessments. The dollar amount of the assessment is dictated by the HOA’s budget and can be as high as $300. The assessment collected each month goes into a fund that the property management company uses for things like maintenance and repairs of the community.
Low payments, low maintenance, and amenities!
Condos and Townhouses can be a great option for young adults and the elderly since the monthly payments can be less than a house and there is much less maintenance required by the owner. Not to mention many communities come with amenities such as a pool and a gym!