One of the hardest parts about buying a new home is deciding which type of home you want. When it comes to condos, co-ops, and townhouses, a lot of the differences aren't always evident. In this post, we're going to take a look at all three so we can make better informed decisions about them.
Let's get to it.
1. Condominiums
Condos are usually located in large buildings housing many units, or multiple buildings within a complex. The buying process is simple. Individuals purchase the unit and now own the real estate. This means that they own the apartment unit while common areas like pools, tennis courts, lounges, and exercise rooms are owned collectively by everyone involved with the condo association. Everybody plays their part by paying dues, condo fees, to maintain the whole.
Advantages: Condo ownership is a great option for spending less and lower property taxes. Maintenance is less expensive as well since costs are shared among all unit owners, which means chores are reduced to the minimum.
2. Co-ops
Co-ops and condos are always confused with each other. The difference between them is when you buy a condo you own property, and when you buy a co-op you own shares. The ownership of the building is shared with other fellow shareholders.
Advantages: Buying this type of property is advantageous since the price and taxes are lower compared to other properties. The more shares you buy, the more weight you hold in deliberations about what happens in the building.
3. Townhouses
These units are usually multi-level, although there are some that are single-level. Owning a townhouse is much like a condo, the common elements are shared with neighbors, there are association fees, and board of directors. Owning a townhouse is very close to what it's like to own a single-family home, but with additional services and restrictions.