Also, you need to take into account that high HOA. What is do you get included for that fee?
Don't disregard all those other folks comments either, they all have good advice.
I have a listing with Excellent Campbell Elementary and middle school located at 224 Wedgewood Ave, Los Gatos. Use me as your agent and I can Give you $11,000 commission Rebate.
Other issue with foreclosures is that most of the time you are not be able to purchase it, while most of the time you can bargain little bit for normal sales. Look for value, make many offers slightly below market value in areas with good schools.
1) Safety of your investment. LG townhomes and condos have continued to appreciate through the financial meltdown; Campbell sgl-family homes have declined.
2) Neighbors. If, like me, you're well-educated and not from California originally, you'll be appalled at the ignorance and low educational-cultural level of the blue-collar natives here. It's especially hard on people from abroad. Campbell may have attracted some new yuppies recently, but it's still heavily weighted toward native-born rednecks. In Los Gatos you're much more likely to have neighbors who know the difference between Rajasthan and Uzbekistan.
3) Schools. Never mind brokers' BS; the California public schools anywhere are a joke compared to schools in Europe and Asia. Campbell's schools are especially bad due to low-achiever, low-standard parents (see #2, above), whereas Los Gatos schools are at least tolerable due to demanding parents. Try to get in the LG area that feeds Blossom Hill Elementary, NOT Dave's Avenue Elementary).
I agree with everything Ali has said, I would like to add it also depends on the location of your house in Campbell. If it is near downtown Campbell, go for it.
Also some of the Campbell schools are as good or better than Los Gatos schools.
Ali provided you with some great input. Location is always an important factor in resale. As Allyson pointed out, Los Gatos schools are highly sought after and certainly help in the resale of a home that lies within the Los Gatos school district. It is important to keep in mind that the school district lines do not follow city/town lines. A home can be located in Los Gatos and not be within the Los Gatos school district. To make an informed decision, you should also verify the school district that the home falls within.
This is Allyson, Ali gave you good advice I would add that it depends on the location of each, and he is right about sfr usually appreciate more except for this one point of schools. Los gatos schools will assure you of good resale as most buyers want good schools. If you can afford it go with the Townhome with the good schools.
Ultimately you need to decide which property fits your needs and life style better and go with that one. Here are a few general pointers that maybe helpful:
1. Location. I'd always pick the property with the better location and neighborhood. Factors like traffic noise, condition of surrounding homes and schools are very important in choosing a home.
2. Single family homes historically have appreciated at a slightly higher rate than town homes.
3. Depending on what the HOA offers for $480/mo, may not be a bad deal. Expenses such as insurance, gardening, garbage , ... that HOA may cover are the costs that you'll have to pay in a single family home as well.
4. The additional $100,000 cost for the town home plus a portion of the HOA fee will add up to about $1,000/Mo. How will this additional monthly cost affect your budget and life style?
Hope this bit of information helps.