Condo vs. Townhouse:
Understand the Differences Before Buying
When deciding to purchase a property, many buyers find themselves choosing between a condo and a townhouse. While they may seem similar at first glance, there are important differences in ownership, maintenance, costs, and lifestyle.
What Is a Condo?
A condo (condominium) is a residential unit within a larger building or community. The owner typically owns only the interior of the unit. Exterior areas and shared spaces — such as hallways, elevators, landscaping, pools, and parking areas — are collectively owned and managed by a homeowners association (HOA).
Key Features:
The owner is responsible for the interior only.
Exterior maintenance and common areas are managed by the HOA.
Mandatory HOA fees.
Often includes amenities like a gym, pool, or security.
May have stricter rules regarding renovations and property use.
What Is a Townhouse?
A townhouse is a multi-floor home that shares one or more walls with adjacent properties but has its own private entrance. In most cases, the owner holds title to both the interior and exterior structure, including the roof and sometimes the land it sits on (depending on the community rules).
Key Features:
Greater responsibility for exterior maintenance.
May include HOA fees, but typically lower than condos.
More privacy compared to condos.
Usually offers more interior and outdoor space.
Fewer shared amenities.
Key Differences
1. Ownership
Condo: You own only the interior of the unit.
Townhouse: You typically own both the structure and the land.
2. Maintenance
Condo: The HOA handles exterior maintenance.
Townhouse: The owner is generally responsible for most maintenance.
3. Costs
Condo: Higher HOA fees but fewer direct maintenance expenses.
Townhouse: Lower HOA fees, but more personal maintenance costs.
4. Lifestyle
Condo: Ideal for those seeking convenience and less responsibility.
Townhouse: Better suited for those who want more space and independence.
Is Financing Different?
Yes. Financing a condo may require additional approval of the condominium association and review of its financial health. Some lenders require the condo community to be approved before issuing a loan.
Townhouses often follow a more traditional home financing process, depending on the ownership structure.
Which One Is Right for You?
Your choice depends on your lifestyle and priorities:
Prefer less maintenance responsibility? → Condo
Want more space and ownership control? → Townhouse
Value shared amenities and services? → Condo
Looking for more privacy and a single-family home feel? → Townhouse
Before making a decision, consider:
HOA fees
Association rules
Maintenance costs
Financing requirements
Source: Adapted from an article published by CrossCountry Mortgage.
Link: https://crosscountrymortgage.com/mortgage/resources/condo-vs-townhouse/
*The above is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
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