If you're shopping for a home, you may be considering townhouses and condominiums. But what are the differences between the two?
While most condominiums are apartments, a townhouse is attached to one or more houses and can run the gamut from duplexes and triplexes to communities with hundreds of homes. On the plus side, there are no neighbors above or below the home like in an apartment; and because the homes are attached, they may offer a greater sense of security.
With a townhome, buyers usually separately own their homes and the land on which the houses sit. With a condominium, the unit owners jointly own the land and this common interest cannot be separated from the others.
Townhouses can be structured in many ways. Some, particularly huge communities, have common areas – such as swimming pools – that are similar to condominiums. With a huge community often comes a homeowner's association, for which buyers will have to pay a homeowner’s fee, as well as various rules to adhere to. There is also less privacy than with a detached single-family home. And there are limits on how you can make exterior changes to the home.
There are many considerations to take into account when purchasing a townhome or a condominium, so be sure to chat with a qualified real estate professional before making a decision.