Pro’s and Con’s of Different Property Types
Understanding the different types of properties is an important part of choosing the right property for your goals. This guide breaks down the different options and the pros and cons that you should consider when deciding which is best for you.
CONDOS
Of all the home types on the market, condos require the least amount of maintenance. You only need to maintain the walls-in.
Condos can be an option for anyone who wants to keep home maintenance to a minimum, including first-time homebuyers, singles, older homeowners or people who travel frequently. With the association taking care of maintenance, you won’t have to worry about tasks like mowing the grass or arranging trash pickup services. Apartments have a similar no-maintenance quality, but unlike an apartment, you can’t call your landlord or superintendent to fix something if you have a condo — you’ll need to find your own contractor.
Pros
- Limited maintenance
- least expensive home ownership option
- Extra security
- you own
- amenities
- tight community, lots of neighbors
- walking distance to shops, restaurants, attractions
- Insurance is generally less expensive
Cons
- Limited ability to customize
- Potential privacy concerns
- shared amenities
- very little storage
- limited parking
- monthly fees
TOWNHOMES
Most townhouses, have small footprints, multiple floors and shared exterior walls with neighboring homes within the community. Some townhouses might have small yards or patios, and can be much cheaper to buy than a single-family home.
For homebuyers debating between a house or condo, a townhouse might be the best of both worlds. You get multiple levels, often more space (like a single-family house) with less exterior maintenance (a major perk of condos). Pet owners will also like the fact that their townhouse may have a small yard for their four-legged friends to enjoy.
Townhouses usually come with HOA rules and dues. When it comes to the ability to make your own choices about your property, you might have a bit more autonomy, but your decisions still typically have to be HOA-approved. Depending on the age of the property and amenities offered, the HOA fees can add up fast.
Pros
- you own
- less expensive than a single family home
- amenities
- small yard/patio
- More space
- More control over customization
- less exterior maintenance
- tight community, lots of neighbors
Cons
- Monthly fees
- close neighbors
- limited parking
- potential privacy concerns
- storage
HOUSES / SINGLE-FAMILY HOMES
The biggest points in favor of buying a house is the freedom to decorate, maintain and alter it however you like (while obeying local building ordinances and/or homeowners association guidelines), and privacy.
Owning your own house gives you more freedom to live how you want versus condos, townhomes and renting.
A house doesn’t share walls or common spaces as some condos and townhomes, meaning you have more privacy. Many single-family houses also have yards, so you get more outdoor space to enjoy.
Owning a house means you’ll be responsible for all of the maintenance and repairs, which can be considerably more cumbersome than you’d have with another type of home. Think lawn care, keeping the gutters clean, servicing the furnace and other routine maintenance. Those tasks can add up to significant time and money.
Pros
- Freedom over aesthetic choices
- you own
- More outdoor space
- Easier to sell
- Privacy
- more storage
- parking
- regular payments improve your credit score
- stability
Cons
- Higher price tag
- All maintenance is your responsibility
- Homeowners Insurance is higher
- lack of built in community
- utilities
- HOA in some areas
- property taxes
APARTMENTS
A big factor in determining if you should look for a condo vs. apartment comes down to money: Do you have enough cash to put toward a down payment? Apartments can be a good choice for someone who doesn’t have enough income or funds in reserve to afford buying a home. They’re also a wise option for someone who isn’t certain about their next steps in life.
There are other considerations to make, too. How long do you plan to live there? Are you likely to have a job or lifestyle change that would require you to move? If you plan to move within five years, it could potentially be better to rent instead of buy.
Apartments give residents a place to live without most of the responsibilities that come with homeownership, such as property taxes, maintenance fees and building upkeep. The buildings could come with community amenities.
Pros
- Flexibility to move
- No need to worry about maintenance
- close distance to shopping, recreation, restaurants
- amenities
- no need to worry about property taxes and homeowners insurance, just renters insurance
Cons
- No equity or ownership benefits
- Must abide by landlord’s rules
- privacy
- parking
- storage
This is the first of many important decisions you’ll need to make when purchasing your next property. If you are ready to get started or want someone to guide you through the purchasing process, reach out to one of our agents here at Ivie Avenue. Our agents are experts in the Utah Real Estate field and are ready to help you find the property of your dreams!