With a regular home purchase, you own the home itself as well as the land it’s on, and it’s your responsibility to maintain it.
What’s the Difference Between Townhouses and Houses?
Size: Townhouse vs. House
A regular house may or may not be larger than a townhouse when it comes to interior square footage, but with a house, there’s often more exterior space and room to expand.
Amenities: Townhouse vs. House
Most townhouse developments have amenities such as basketball and tennis courts, a large in-ground pool, and/or a recreation/fitness center. These are shared by all the owners in the development. If you own a house, any amenities you want will have to be added and maintained on your own, assuming there’s enough room to add them.
Maintenance: Townhouse vs. House
One of the benefits of a townhouse is that there is less maintenance to worry about because the HOA takes care of some exterior upkeep. Those who own a house know that maintenance can be both laborious and can get expensive.
Cost: Townhouse vs. House
Although real estate prices are all over the map, townhouses are generally more affordable than a single-family detached home of comparable size and design.
Autonomy: Townhouse vs. House
If you’re someone who likes to make frequent changes to your aesthetics and decor, you may find yourself limited by HOA rules if you live in a townhouse. Even something such as painting your front door may need approval. On the other hand, if you have a house, you’re fairly free to do whatever you’d like (provided you get any needed permits).
Which Is Right for You?
Choosing between townhomes and homes comes down to your personal financial situation, as well as your lifestyle.
Homes May Be Right for You If:
Privacy is important to you, and you want to have control over aesthetic decisions. You have the financial means to afford the purchase price, and a cash cushion to handle any future maintenance and repairs that may arise. You want to invest in property that you can upgrade and increase in value.
Townhomes May Be Right for You If:
You’re a first-time homebuyer who wants to own something at an affordable price. You prefer ownership that’s low-maintenance. You like a lot of amenities but don’t want the responsibility or cost that go with them.
When Making This Decision, Ask Yourself:
How important is privacy and autonomy to me?How long do I plan on staying in the home?Would I benefit from having amenities nearby?Is having some maintenance taken care of worth paying HOA fees?
Of course, it’s always helpful to crunch some numbers using a mortgage calculator if you have particular properties in mind.
The Bottom Line
Choosing between townhouses and houses comes down to what you want your home ownership to be like. Many find townhouses to be the perfect escape from apartment living, as they often allow for affordable, more spacious home ownership with amenities but without some of the burdens and expenses of maintenance. On the other hand, some people prefer not to live in such close quarters with neighbors and like having more control over what they can do with their homes. Even people who are thinking of their purchase as a “starter home” may decide that investing in a house versus a townhouse offers more potential for increased value. If you’re still torn, explore both of these options with your real estate and mortgage professionals to see which might be the better choice for you.
