Or do you like amenities like a 7/24 concierge, pool, workout room, and more of a social scene? Go condo (i'm giving an example of a typical highrise condo--of course there are mid-rises and vintage condos with no amenties....) Now that the housing market has stabilized you'll find less nightmare stories with condos if you choose buildings carefully. Of course, there's always the risk that someone from crazy town will get on the Homeowner's association board....which will affect you more in a condo that a townhome.
Townhomes are typically a better investment, but if you and your agent do some research, condos can be a good investment as well. Be aware that many townhomes are "fee simple" and may not take care of exterior and roof repair like a condo. I personally tire of all the different levels of townhomes--my next home will be a condo!
Unless the price of a town home or condominium is irresistible to you you will want to know that town homes often have much lower HOA fees that do condominiums. You can find townhomes with fees of @ $200+_ a month. A two bedroom condominium will usually be more expensive and have fees in the neighborhood of $450+-. A huge difference when considering your carrying costs.
Then coms the question Hi-rise condominium or mid-rise with 5 floors or less.
That being said, hi-rise condominiums are rare compared to town homes and mid-rise homes. This translates to a higher demand and higher purchase price for hi-rise homes.
Consider whether or not you want the stairs. Retirees typically avoid stairs when they are purchasing which limits your opportunity for buyers when you go to sell. Most town home owners use their downstairs and only go upstairs to sleep.
My first question to you would be "where do you want to live and play and you will probably want to land in a vicinity within a comfortable commuting distance to your office.
Then, check with your agent to determine availability and pricing in that area. That in itself may be a determine factor on what you eventually purchase.
I have a lender whose closing fees are only $751, far under the closing costs of other lenders.
I hope that this helps somewhat. Untimately, the answer is "it depends",
BRIGHTSTAR at Keller Williams Realty
You have more privacy in a single family home ,no common walls. Typically you get more appreciation with a single family home.
You are correct about skyrocketing fees and don't forget plummeting values if there is not enough money to take care of common areas. Why depend on strangers for your financial well being?
It is a lifestyle and personal preference issue.
Yes HOA and Dues can sky rocket with or without other members
Going into default, should Cost of services and Inflation soars.
Also, may want to consider long term ROI.
Your concerns about skyrocketing fees are valid and can occur in either type of property.
To sum up, the key differences are life style and form of ownership. The condo lifestyle can offer a higher level of amenities, particularly in high-rise buildings, one-level living, and no maintenance responsibilities. However, you have less control over renting your unit and little control over when or how maintenance is performed.
Townhomes offer multi-level living, more responsibility for maintenance and as a result, lower HOA fees - usually.
You might consider cluster homes too, they offer the advantages of townhomes in the form of a single-family home.
Which ever way you go, do your research. Your Realtor can help you determine the sales trends, financial health of the HOA and details of your rights and responsibilities as an owner. The results of your research will help determine whether a particular condo or townhome is a good investment.
Best Atlanta Properties
I would be glad to put you in touch with some top notch agents around Atlanta, who can assist you for no cost to you!
Also, i would be more than happy to assist you with the financing for your purchase.
Feel free to give me a call any time.
apply online: gcohen.brandmortgage.com
NMLS# 75615 | 1078450
As Lee said, if you buy smart and do the proper amount of research, you can limit the opportunity for HOA disaster. Buy into a stable community/complex and check the financials. It goes without saying that a ridiculously thorough data scrub is also required - investors have and are completely skewing the data and many of these units are selling well above where they should.
A fee simple townhouse can be one of the best undermarket buys in any submarket. Why? Because the average sales price in a quality area is usually less for a townhouse than it is for a single family house nearby. And, fee simple ownership is more flexible than ownership with condo association governance.
Even a condo or a townhouse that is part of a condo association can be a terrific undermarket buy, delivering great value at a lower than average price for the submarket.
Fees can get you, so what do you need from a community? Kirsten's points are very valid.
Read my article that I wrote yesterday about townhouse values in my city, Decatur.
Finally, depending on your fear of doom and gloom, stop worrrying about how someone else in a condo association might let you down. Buy into a quality community with excellent fundamentals and you will not have any worries...