Amygdala,
We are asked this question on a daily basis and it an excellent question. We are investors as well in residential and commercial properties.

This pertains to any investment, it is not what you can sell it for, it what you can buy it for.

We had a client that wanted to buy a townhouse/condo and we bought it for $100,000 under market. It was in an excellent location with potential for a great upside. Was that a great investment, yes!

I hope that you find an excellent agent that can represent you. In any new development, the agents in the development represent the seller and will negotiate hard for them. Your agent will negotiate for you and can typically (by a large percent) receive a much better deal than you, had you entered the development alone.

I wish you luck. E mail me if you have any questions about investing, this is my great passion and I have had success.

Catherine

Wow, I guess just about anything can be a dealbreaker for some people-- really? they wouldn't walk down two flights of stairs to the laundry room? I'm sorry, but that's incredibly lazy. Perhaps your clients need a washer and dryer in their bedroom. I'll remember to keep fat and lazy people in mind when considering my purchase, in which case I think I'm starting to lean toward the single-story home...

From a resale standpoint, the 3-story townhouse is going to be a harder sell ... it also depends on the floor plan. Some clients and I just looked at 3-story townhouses in Gilbert where the laundry room was on the ground floor and the master bedroom was on the third. Two flights of stairs just to wash the clothes.

At the same time, if you hate the concept of suburban living and would rather be in the middle of everything, then a townhouse may be the better way to go. Make yourself happy first, then worry about the resale angle.

Amygdala,

Historically, and generally speaking, single family homes tend to increase more in value. Although that is not always the case and the difference is not always significant. Remember that prices are driven by supply and demand.

Another factor to consider is that 3-story properties are not popular and you will limit your pool of buyers. Many baby boomers for obvious reasons, and some generations that follow, prefer single story properties and their demand is increasing - hence they will increase in value the most.

You also need to consider where you are going to be happier. A single story home might not be a good option for you if you are not going to be happy there. A property is an investment, but will also be your home.

Hi Amygdala,

In your case, I don't think it matters either way as far as appreciation percentages. Either one would be a solid investment. Depending upon your desire (or lack of desire) to have a yard and the landscaping that goes with it, that would make your decision on which you should own. Ultimately you should choose whatever makes you happiest. If you would like some examples of what fits your budget just let me know, I'd be happy to help!

your local real estate agent can advise you. do you have one? do you need a referral?

Amygdala,

I will answer your question from the perspective of a mortgage lender. I personally think owning any type of real estate is great when you take into consideration the tax benefits, the long term appreciation gains and the equity you build for paying down the mortgage. I would make your decision based on your personal needs of a property. a regular home has a lot of upkeep and some folks just do not want to deal with the hassles. It sounds like a townhome would work out perfect based on your situation.