Preparing to buy real estate is an exciting proposition. If you have determined that you would like to stop renting and finally become an owner for yourself, then it is time to look for the exact type of residence that you would like to purchase. Depending on where you live, there are many possibilities. Two traditional options involve condominiums and town houses. Strangely enough, people often confuse the difference between the two. Here are the five main differences between town homes and condos that you will want to be aware of as you begin your search.
Ownership of the Building
It is important to know that the owner of a condominium only owns the interior of the dwelling. The rest of the building, including the exterior of each individual condo and the grounds itself, is owned by the condo association. With a townhouse, you would actually own the interior plus any private yard or patio/deck area that is included with the dwelling. Condos are usually apartments that are independently owned, and share neighbors side to side, up and down. In a townhome you typically just share walls side to side. If you are lucky to get an end of row you only worry about one set of neighbors.
Rights to the Land
Once again, there is no land ownership when you purchase a condominium. That would remain with the condo association itself. Some Town home owners will own the land that it sits on, while still being able to take advantage of the common grounds associated with the overall complex.
Financing Possibilities
Town homes are generally treated just like single family homes, making a mortgage relatively easy to obtain. Because of the unique structure of a condo, this is not always the case. In order to get a mortgage for a condo, you will need to make sure the condo association has been approved for the specific type of loan you are applying for. Your real estate agent can help you explore the possibilities.
Condo Vs Homeowners Association
Another difference between a condo and a town home is the association that governs the complex. With a condo association, owners will benefit from an organization that is responsible for most of the exterior maintenance to the property, along with the amenities included. A homeowners association will often just take care of the common grounds.
Insurance Needs
When owning a townhome, you will want to check with your insurance policy to make sure what is covered. Condo owners will generally benefit from a master policy that insures the dwelling. This means that only personal property and liability will need to be looked at for purchase.
These are five of the main differences between condos and town houses that you will want to be aware of. They each have their advantages in certain ways, so it will depend on your own unique needs. Take your time and ultimately choose the property that you are most happy with.
