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Condo vs Townhome vs House |
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What is the difference in the costs of owning a condo or townhome compared to owning a house? The purchase price may be lower for a condo or townhome, but there are also association fees. In reality, they are just different ways of assuming the responsibilities of homeownership. It can, however, have a bearing on the mortgage amount for which you qualify. |
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Association fees |
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When you buy a townhome or condominium you become part of a Common Interest Community (CIC) in a Planned Unit Development (PUD), which shares some of the responsibilities and costs of homeownership. Those shared costs are usually paid by each unit owner in monthly association fees. Typically townhouse association fees include the following:
Condominium association fees usually include the above, plus some or all of the following...usually, the higher the fee the more is included:
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Association Management |
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Associations are most often managed by a professional management company. However, some associations are self-managed by elected members of the community. Following are some questions you might ask about the association.
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Qualifying for your mortgage |
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When you are approved for a mortgage, you will be approved for a maximum monthly payment. If you are buying a house your maximum monthly payment typically includes homeowner's insurance, but does not include the cost of utilities and maintenance. When you buy a townhouse or condo, your maximum monthly payment includes your association fee... which covers some, if not all, of your utility and maintenance costs. This means the same approximate qualifying monthly payment will buy you a condo, townhome or house at different prices ranges...see the example below. Monthly payments were calculated with 3% down at 5.5% interest for 30 years. Association fees in the examples include all the items listed above for the condo and typical townhome inclusions listed above. |
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Total monthly home budget |
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Keep in mind that although your qualifying monthly payments are about the same, in this example the condo association payments include everything except telephone. For the townhome example you must pay for your own gas, electric and cable. When you own a house you are responsible for all utilities and maintenance. Following is a comparison of total estimated monthly costs. |
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The right fit |
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All three forms of ownership are good options...it's a matter of finding the best fit for you. A house gives you more independence, but also greater responsibility. A condo or townhome has the security of more regular expenses and freedom from snow and lawn care, as well as outside maintenance. |
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CONDOMINIUM
TOWNHOME
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Summary
Condos offer the convenience of having someone else see to the maintenance of the exterior of the unit. Keep in mind that monthly "condo fees" can be very expensive. You may find yourself paying for a swimming pool, tennis courts, playgrounds, and a community building that you never use. You may also be assessed for the repaving of the streets and other major projects. You will be at the mercy of a "condo board" that oversees the management of the common property owned by the condo association. If you decide to buy a condo, make sure you are comfortable with the fees.
A traditional single family residence will probably give you the best return on your investment depending on where you are located. The only downside is that you are responsible for all exterior maintenance including lawn care. As long as you do not get carried away with landscaping, hiring a lawn care service is fairly cheap if you don't want to cut grass. A house with vinyl siding or other maintenance free exterior will eliminate the need to paint in the future.
Personal Note
I hope this information will be of some assistance to my first time homebuyers in Burlington County, New Jersey. Your first venture into real estate can be a scary one. That is why I am a Real Estate consultant. My job is to explain to you the ENTIRE process, help you find the home of your dreams and hold your hand as you go through the process. Read my testimonials. I know that I am biased, but you can not find a better Realtor & Real Estate Consultant in Burlington County,NJ. Feel free to give me a call today. I will gladly answer all of your questions without any pressure. When you are ready to start looking for a home, you will gladly call me because of how well you have been treated.
Have a great day
Leander McClain, Burlington /Camden County, NJ Realtor & Real Estate Consultant, Keller Williams Realty, 1814 Route 70 E
Cherry Hill, NJ 08003 856-685-1677 Direct
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To all of my real estate clients in Burlington County New Jersey: Now is the time to start thinking about what we are going to cook for our holiday meals. I will share some holiday dessert recipe's that I have come across. Enjoy.
g to leave New Jersey? Now you can, at CoCo Key Water Resort, New Jersey's Newest & Largest Indoor Water Resort. 
tures to New Jersey, said Robin Kirk, vice president of Sage Hospitality Resources, which owns the hotel and water park.
a movie projected onto the sail of a large pirate ship while they swim in one of the pools.
of the fashions will be made from chocolate. 
A ticket to NYC tastings includes the Chocolate Show. However, you may purchase a ticket specifically for the Chocolate Show for as little as $28.00. For this nominal fee you can sample the world's best chocolate, attend chocolate culinary demonstrations, meet authors of books on chocolate and chocolate recipes, such as: Beth Kimmerle
IMAGINE THIS!