Tuesday, November 12, 2013

What is the difference in a Condo and a Townhome/Townhouse?

Many times, the terms condominium and townhome/townhouse are coupled together in the Multiple Listing Service and other real estate search engines.  Why is that… because they are different, aren’t they?

Santa Cruz County and Monterey County Condominiums and Townhomes

YES! A condominium and a townhome/townhouse are different.

condominium (condo) is part of a bigger complex. The owner of the condo owns inside the walls, from carpet to ceiling and shares a common wall/floor/ceiling with other condo units. PLUS the “common areas” (i.e. pools, halls, entry, etc.) are jointly owned with other condo owners.

townhome/townhouse is essentially a home attached to other homes through a shared wall.  The owners owns the unit, including the lot (yard, deck). Typically, there will be a row of townhomes in a development.

With both the condo and the townhome, normally there are a type of Home Owners Associations (HOA). Owners will make a monthly payment to the HOA to maintain the grounds, building, etc. per the agreement.

PROS of buying a condo or townhome vs. renting an apartment

Condos/townhomes are typically less expensive than a single-family residence. Ownership vs. Renting allows for tax deductions, and building equity.

The HOA takes care of maintenance – allowing you to have a life outside of yard work. Usually, the condo/townhome will have certain amenities that most single-family residences do not – like tennis courts, gyms, pools.

Condo/townhome living is not for everyone. But for those who like the idea of “community,” a condo/townhome is something to consider.

Below are statistics regarding condominiums and townhomes in Santa Cruz County, Monterey County and surrounding areas.

If you are interested in buying or selling a condo/townhome, call me today.

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