In many ways, a townhouse and a single-family home are similar, but there are some key differences to consider if you are trying to decide between the two. When you buy a townhouse, you own the entire structure (just like you would in a single-family home) but you share common areas with the other owners in the same development. Consequently, each townhouse owner pays fees to a homeowners’ association that maintains the shared areas – but it also sets rules that you must abide by.
What is the difference between a townhouse and a single-family home?
Construction: Townhouse vs. Single Family Home
– Townhouses are generally multi-level structures that are rows of homes, usually connected on both sides (unless you have an end unit). You can typically notice a townhouse development because all the units look very similar. In contrast, single-family homes offer much more diversity in terms of construction, architectural style, and the number of stories. While some homes might be attached to one (or two) neighbors, many of them are completely detached.
Space: Townhouse vs. Single Family Home
A single-family home might be larger or not larger than a townhouse in terms of interior space, but with a single-family home, there’s often more outdoor space and room for expansion.
Amenities: Townhouse vs. Single Family Home
Most townhouse developments come with amenities like basketball courts, tennis courts, on-site swimming pools, and/or a recreation and fitness center. All units share these amenities. If you own a single-family home, you’ll need to add and maintain any amenities you want, provided there’s enough space to add them.
Maintenance: Townhouse vs. Single Family Home
One benefit of a townhouse is that there’s less maintenance to worry about since the homeowners’ association takes care of some of the exterior maintenance. Those who own single-family homes need to understand that maintenance can be burdensome and costly. Always be sure to review the homeowners’ association agreement carefully so you know the rules and what types of repairs and maintenance are covered and what is your responsibility. For example, roof repairs or regular yard maintenance could fall into one of those categories.
Cost: Townhouse vs. Single Family Home
While property prices vary, townhouses are generally less expensive than a detached single-family home of similar size and design. The owner is responsible for all regular home maintenance and repairs.
Independence: Townhouse vs. Single Family Home
If you are someone who enjoys making frequent changes to your home’s design and decor, you may feel restricted by the homeowners’ association rules if you live in a townhouse. Even something like painting the front door may require approval. On the other hand, if you have a single-family home, you are almost free to do as you wish (provided you get any necessary permits).
In a townhouse, you will have shared walls (which may mean more noise) and less space between your yard and your neighbor’s yard. A detached home typically offers a bit more personal space and privacy.
What is right for you?
The choice between a townhouse and a single-family home depends on your personal financial situation as well as your lifestyle.
A single-family home may be right for you if you consider:
- Privacy is important to you, and you want control over aesthetic decisions.
- You have the financial means to afford the purchase price and have cash reserves to deal with any future maintenance and repairs that may arise.
- You want to invest in a property that you can improve and increase its value.
A townhouse may be right for you if you are:
- A first-time homebuyer looking to own something affordable.
- You prefer
- Having little ownership to keep maintenance low.
- Likes having many recreational amenities but does not want to bear the responsibility or cost associated with them.
When making this decision, ask yourself:
- How important is privacy and independence to me?
- What is the planned duration of stay in the home?
- Will I benefit from having nearby amenities?
- Is it worth paying homeowner association fees for some maintenance care?
Of course, it’s always useful to crunch some numbers using a mortgage calculator if you have specific properties in mind.
Conclusion
The choice between townhouses and houses depends on what you want your home ownership to be. Many find that townhouses offer the perfect escape from apartment living, as they often allow for a more spacious property without some of the burdens and expenses related to maintenance.
On the other hand, some people prefer not to live in very tight spaces with neighbors and enjoy having more control over what they can do in their homes. Even those who view their home as a “starter” home may decide that investing in a house versus a townhouse provides more opportunities for value appreciation.
If you’re still unsure, explore both options with real estate and mortgage professionals to see which may be the better choice for you.
Frequently Asked Questions (FAQs)
What is the difference between a townhouse and an apartment?
Apartments and townhouses are private residential units that share common spaces with other residents. The main difference is that an apartment owner only owns the interior living space, while a townhouse owner owns both the interior and exterior space of the home, as well as the land it sits on.
What is a semi-detached house?
A semi-detached house refers to a home that shares an exterior wall with a neighboring home. It typically has more land and ownership than a townhouse.
How much does it cost to build a townhouse?
According to the U.S. Census Bureau, the median sale price of a newly built home by a single contractor in 2020 was $298,500. The research does not differentiate between the costs of a townhouse and a regular house.
How much homeowners insurance do you need for a townhouse?
If you own a townhouse, you will need a standard homeowners insurance policy with the same coverages you would get for a regular house. This coverage will include damage from fires or natural disasters, theft or destruction of personal property, and liability protection for accidents that occur on your property.
Source: https://www.thebalancemoney.com/townhouse-vs-house-what-s-the-difference-5205018
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