Townhouse vs Condominium Ownership
Townhouses and condominiums are often more affordable than single-family freestanding homes for home buyers looking to purchase their first home, but HOA fees can get high for communities with lots of amenities. Empty-nesters and retirees looking to downsize should consider the minimal maintenance and single level living that a condo provides while keeping in mind that convenience sometimes comes with a cost, i.e. the HOA and maintenance fees.
Condo | Townhouse | |
Description | A building or community of buildings in which units are owned by individuals, rather than a landlord. Buildings often provide more amenities that townhouse communities. | Conjoined units owned by individuals. Often have a small backyard and feel more like living in a house. It’s common to share at least one wall and have two or more stories. |
Ownership | Condo owners only own the interior of their unit. All other areas, including the building exterior, lawn and communal areas, are property of the Homeowners Association (HOA). | In most townhome communities, owners own their unit’s interior and exterior, including the roof, lawn and driveway, but not the communal areas. |
Homeowners Association Fees | HOA fees for condos are typically higher than townhouses because they pay for exterior upkeep, such as lawn care, trash removal and pest control. | Townhouse owners pay lower monthly HOA fees because they pay for much of their own upkeep. Some maintenance and trash removal are still handled by the HOA. |
Home Insurance Rates | Home insurance rates are usually lower for condos because owners have to insure only the interior of their unit. | Townhouses may have higher home insurance rates, since most owners need insurance to cover both the exterior and interior. |
Maintenance Fees | Condo owners often pay higher monthly maintenance fees, to cover exterior and community space repairs. | Townhouse owners typically have lower monthly maintenance fees, but pay more out of pocket for exterior and interior care. |
When you are ready to start looking for a townhouse, condo or single-family detached home, contact a Certainty mortgage professional in your state to get pre-qualified first.