Condos are all the same, a beast to sell in a buyers market. Townhomes generally have more variety.

Thu May 8 2008, 13:24

Townhome, unless you are buying for rental investment later.

Thu May 8 2008, 13:23

The answers you've already gotten are good except for one thing. A condo is not necessarily or even usually single story and a townhouse is not necessarily multi-story though many are. It's a townhouse if you own the land under it but the house is connected/attached to one or more adjacent houses. It's a condo if you do not own the land, only the space inside the walls. WIth the condo you usually also own a percentage of the common areas but it's not a defined space, it's a percentage ownership of the entire common area.

A townhouse HOA or PUD may include exterior maintenance but you own the exterior. A condo association almost has to include exterior maintenance because you don't own it, at least not entirely. The condo owners share ownership. A condo can be a unit in a large multi-story building.

Some people will refer to a townhouse style meaning any 2 or more story home with no other unit above or below yours. But a home of that style can be sold as a townhouse or a condo.

Sat Apr 26 2008, 22:58

Hi, Several questions come to mind that need answering to assist you in making your decision. Many have already been discussed, so here are a few more to consider. Around here, as the current market has once again proven condo values are very volatile and can sink quickly. more so then comparable townhomes. To be sure the townhome is going to be a more solid investment. As far as the HOA fees are concerned, they are usually only $60-80 a month and cover not just the routine snow removal, trash collection, etc... but also help ensure that the neighborhood or complex is maintained to a certain standard, ie. no car on blocks in the front yard etc. This is often time a good thing. I can show you townhouse neighborhoods that look lousy, and who's value is down as a result, that would not be in that situation for a small HOA fee.
Another BIG question is..... how long do you plan to own the property. Different answers and different financial plans - might dictate different purchases. For example, you were thinking to own for say 5 years, then move to another state and sell this - would certainly open you up to buying either the townhome or the condo. Maybe you think you'll stay here 5 years then move up to something larger and keep this as an investment. A savvy investor might opt for the condo now - they are usually easy to keep rented - then go for something nicer later for yourself or family (potential future growth). Different personal situations and different goals mean different choices now.
One thing is sure - this buyers market won't last forever - eventually prices will go up again, and when that happens you want to be sure that you aren't still holed up in a rental.
Another thing that might help is a session with an independant financial advisor. Just buy an hour or two of their time and put all your questions, concerns, and current finances to them for advice. And don't forget the tax benefit of owning.
I hope I've helped more than confused.
Richard

Sat Dec 29 2007, 23:27

Thanks again Kim. A townhome would put me right up against the edge of my comfort level, but I couldn't buy a big plasma TV, surround sound, etc...know what I mean? I guess the best thing for me to do is wait about another year or so, save up a bit more and hope home prices don't appreciate. I guess I should say its not what I want (I want a lot of things), but what makes the best sense in long term. I have read on other posting that condos have a harder time selling than Townhomes and am trying to make my purchase considering everything. Plus, I don't have to LOVE my house. I can be a very un-emotional buyer and prefer a good deal over getting what I "want"...thanks for your advice...

Sat Dec 29 2007, 20:34

Hi Again,
I think based on your more indepth email, I would go with the one that is NOT going to put you in over your head now, or in case you have a job change, extra expenses come up out of the blue, etc. I would rather have something smaller and not panic every 1st of the month or hold my breath and pray that my car don't have to have a major repair. But that IS to the extreme. What you could do is go to a loan calculator and see what the monthly payments would be on the more expensive one versus the payments on the lower priced unit...THEN ADD to the lower priced unit the H.O. Association fees and see how the two TOTAL payments per month compare. If you are going to end up paying OUT of pocket per month almost as much or the same or MORE WITH a HOA, then I would go for the more expensive unit that most likely will give you a better RESALE value in case you do have to sale on down the road.

Now....if you have already done that research...then the bottom line would be WHAT do YOU WANT. The homebuying experience is an emotional one. If you enjoy the yard work, snow shoveling, etc and like to invite people in from out of town, they will need somewhere to sleep or hang out. So, its better to have more room. If push comes to shove, you could always rent a room out to a room mate in the bigger place if you are not a "loner" and can deal with another person in the house. :)

Good luck and thanks for letting me share my thoughts.

Sat Dec 29 2007, 20:04

Thanks for your answer Kim, I guess I should have provided more information. The locations of either the condo's or townhomes are almost identical, maybe 1/4 mile apart from each other, so they share the same neighborhood. I don't really care for a pool, tennis courts, or even the all enticing "snow removal" for the three days a year it snows in DC. I guess what I am really asking is would it be better to be a bit house poor in a place that I can grow into or get a smaller place that I can afford (and have plenty left over), but I have to pay 300 bucks and up for a HOA fee that covers insurance, lawn maintenance, and snow removal, (which I actually enjoy doing). Thanks again...

Sat Dec 29 2007, 19:41

Hi Chuck,
In general, a townhome vs a condo is really the buyers preference. A condo is 1st floor, no stairs. A townhouse is 2 stories. Alot of older people go with the condo for the option of NO stairs.
The appreciation rate of the two will vary on the LOCATION it comparing apples for apples... 2 br 2 ba condo vs 2 br 2ba townhouse. Compare sq. footage, age, condition, exactly as an appraiser will do. But the bottom line of the value will be based on the Location and Area that the home is located in.
The homeowners association fees should be "compared" as well in the amenities...comparing apples for apples. If one has lower fees, but they do not have a swimming pool, tennis court, etc etc and is located so far out that you have to pipe the sunshine VS the homeowners association that has NO extra perks except cutting and manicuring the lawn, but they are located near doctors, hospitals, YMCA, shopping etc....All of that needs to be evaluated.
Your decision should be what YOU feel more comfortable with if you are buying it to LIVE in. If you are wanting to purchase and then use it as an investment later to make money, you need to consider the "next" potential buyer and what THE MAJORITY of people are going to rather buy.

Hope this helps.

Sat Dec 29 2007, 19:23