| By :
Stephen Daniels
Many people dream of owning their own homes. Factors such as timing, finances, and the current market are important when taking the leap to ownership. It is also important to understand the different types of properties and what they have to offer. Differences between condominiums and town houses may seem small, but they can greatly impact your home owning experience. The primary difference between condominium and town house developments is the construction. Condo owners do NOT own the land under their homes, while townhouse owners do. Usually, the roof in a townhouse belongs to the homeowner; however, the homeowner's association typically is in charge of roof maintenance in order to keep a uniform appearance for all units. This difference has a huge impact on the types of financing available to you. Because townhouse owners actually own the land under them, there are fewer lending restrictions than for condo owners. Both town house developments and condominiums are typically located in more urban areas. Their type of construction allows for a small plot of land to be utilized for multiple residences. Town houses require more space than condos, usually allowing for small private yards and green common areas. Condos are often multilevel buildings that may have a small common area, but no private land. Condos will often be found in downtown areas while town houses can be found in the outskirts of downtown or in newer developments close to shopping and businesses. These areas are not only convenient, but more expensive than suburban areas. However, they do permit people to own property rather than rent at a lower price than a detached house in the same locale. Location is not the only factor that increases the cost of these properties. Property taxes are typically higher in urban areas, and homeowner's association fees for both condos and townhomes can be expensive as well because of the cost of maintaining common areas as well as providing extra amenities. Some of these fees may also include utilities such as water, sewer and garbage. With condos, "walls out" property insurance is usually covered. The home owners are responsible for their own "walls in" property insurance if they want the contents covered as well. Some lenders require "walls in" coverage to protect attached walls in items, such as cabinetry and appliances. The self management of property costs is a small example of another significant difference between these types of property. Because condominium owners share their property with other tenants and home owners, a unified policy is often imposed regarding decorations and personal property outside of the unit. This could include restricting the color of curtains in visible windows or what accessories are allowed on balconies. Town house developments may include some restrictions as well, but generally there is more freedom in personal creativity. Condominiums and town house developments give more options for home ownership. They allow for people to own residences in more urban areas with lower maintenance requirements. However, it is important to be aware of the difference between these two properties. Understanding the pros and cons of each will help guide you in finding the right fit for you.
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