What are the different types* of homes you can purchase and the pros and cons of each?
1) Single-family homes: These homes are your classic American-style detached homes that sit by themselves on their own plot of land with their own yard. Think of your traditional white picket fence home and the American Dream.
These homes are typically the most expensive but are better investments as they are usually the most sought after home types by buyers.
2) Condos: Condos are pretty much apartments that you can buy instead of rent. Unlike single-family homes, the condo building and the land beneath it are co-owned by everyone in the complex who has purchased a unit.
Usually the amenities and upkeep in a condo community are paid for through a homeowner’s association or HOA, which is funded through monthly fees paid by residents.
Single-family homeowners don't have to pay a HOA fee, but the benefit of these fees are that condo owners don't have to worry about most home maintenance costs themselves, as they are divided amongst their neighbors.
3) Townhomes: Very similar to single-family homes, townhomes offer the space and feel of a single-family home but are usually attached to their neighboring units by sharing either one or two walls and function more like condos. Townhome owners share the ownership of the land around the homes and pay monthly HOA dues.
Townhomes are becoming increasingly more popular options as they are more affordable than single-family homes, but offer similar value as one with the benefits of a HOA.
*Disclaimer: There are more types of homes than these such as co-ops, small lot homes, multi-unit properties, vacant land development opportunities, etc., but these are the most popular!
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