Condo vs. House: What’s the Difference? (2024)

FAQs

Condo vs. House: What’s the Difference? ›

Owners of single-family homes purchase the home structure and the land it sits on, while condo owners own just the unit they live in, not the larger building or the land on which it's built. Generally, with a condo, the surrounding exterior space is shared among the condo owners.

A condo is usually less expensive than a free-standing house. Condos are much smaller in square footage, and maintenance is typically cheaper because you're only responsible for the interior of your home. You don't have to worry about landscaping, the roof or the exterior walls. The condo board or HOA covers those.

Condos offer residents the opportunity to embrace homeownership without the hassle of yard work, snow shoveling, or home repairs. Building hallways, entryways, and community spaces are also taken care of by a cleaning or maintenance staff, so you only have to worry about your living space.

Generally speaking, condominium owners have an individual unit within a larger complex. Townhouse owners, alternatively, may share a wall with their neighbors, but they also own the structure of the home itself and the property's surrounding land.

House refers to a building in which someone lives. In contrast, a home can refer either to a building or to any location that a person thinks of as the place where she lives and that belongs to her. A home can be a house or an apartment, but it could also be a tent, a boat, or an underground cave.

Condos can be difficult to resell because of the narrow pool of buyers interested in these properties. Families with multiple kids often want yards and some people may be turned off by the idea of living by someone else's rules. The costs associated with condo living also make the buyer pool smaller.

Security. If you travel a lot, or for any other reason are often not home, a condo is generally more secure than a free-standing house. You'll have other people around and building maintenance to keep an eye on things for you.

Condos also provide a community life that single-family homes often don't provide, including shared spaces and amenities, events and more. It's a lot easier to take off and pursue travel or live seasonally in another area with the peace of mind of knowing that once you lock the door, everything will be taken care of.

Frequently Asked Questions About Condo Living

In general, living in a condo can be less expensive than living in a house. This is because of the reduced square footage, cheaper utility costs, and maintenance coverage with HOA fees.

Can you rent a condo? ›

Yes, you can rent a condo, but you'll want to be sure to follow the condominium boards rules and regulations. These rules are one of the key things that makes renting a condo different from renting an apartment.

The main difference comes down to ownership. Condominiums are owned by individuals and rented out privately (this is your typical landlord). In contrast, apartments are generally owned by property management companies who rent and manage all the units, creating a more standard approach and leasing process.

Townhouses are often built as part of gated communities or neighborhoods. Pros of townhouse living include affordability, HOA and shared amenities, and close proximity to neighbors. Cons of townhouse living include less square footage, less freedom about your home's appearance, and less privacy.

In general, you'll likely find it cheaper overall to buy an existing home, but that also depends on the market. A home loan is less risky than a land loan, and typically comes with a lower down payment and better interest rate.

If that sounds familiar, you might be “house-rich, cash-poor” (otherwise known as “house-poor”), meaning you have equity in your home but not enough liquid assets for saving and spending. CNBC Select breaks down how to avoid becoming house-poor — as well as what to do if it's already too late.

"What makes a house a home is that it shares your story. It's a form of creative expression that showcases your personal style, travels, and what inspires you through form, color, and texture. Every home is unique, and it's important to bring parts of your life and objects you absolutely treasure into your home.

There are 5 major reasons condos historically lag in appreciation; No land - land is actually what appreciates, buildings depreciate. A condo has less land per unit. Less Able to Differentiate - selling a home one must create one of a kind to hold price (the only home backing to protected woods etc).

On the other hand, when you purchase a condominium, you only own the specific unit. No land = less value. Also, it's likely that more condominium units can fit on single plot of land than single family homes, as condos are often built up instead of out. This higher supply of condos can in turn drive prices down.

With lower price tags overall, condos are a popular choice for first-time home buyers and real estate investors alike, but be sure to consider your budget, planned use of the property and the real estate market before making an offer.

What's condo meaning? ›

A condo, also known as a condominium, is a housing or residential complex in which there are separate units, with each unit being owned by an individual. When someone rents a condo, they're renting directly from the condominium owner.

It helps to know that a luxury condo offers more space as compared to a regular home. This is because the additional area utilized for extra rooms and space adds to its exuberance. In addition to this, amenities such as pantries, laundry rooms, powder rooms, and dressing rooms enhance the overall appeal of these units.

Generally, a condominium is a private residence that is rented out to tenants, it can be a flat/apartment or an independent house. But in modern use 'condo' is referred to apartments and flats only. Plus, condominiums are owned and rented by individuals so renting a condo is more of a personal, one-on-one process.

Condo owners participate in the maintenance of the common areas via the homeowners' association (HOA), so these common areas tend to be kept up nicely. Condo buildings sometimes also have more luxury amenities than apartments, including onsite parking, pools, gyms, or tennis courts.

If you are looking for a retirement property that is easy to take care of, a condo may be the perfect option for you. With the maintenance and repair taken care of by someone else, you can relax and enjoy your retirement years. Condos offer retirees many great benefits that other types of housing cannot.

The bottom line. Flipping condos can be a great way for new real estate investors to get started. The property purchase price and renovation costs are often cheaper, the risk of unforeseen structural problems is far lower, and there tends to be less direct competition from other investors.

Perhaps the most obvious difference between a townhouse vs. single family home is the structure. Townhouses are attached to one another, with each having at least one shared wall with adjacent townhomes. Single-family homes are freestanding, typically on a plot of land that also belongs to the homeowner.

Is it a good investment to buy a condo in Florida? ›

Condo units are generally more affordable compared to single-family or multi-family properties. Appreciation. Just like any real estate investment, condos are very likely to appreciate over time, provided it is in a good location and great condition.

Studio. A studio condo features a design layout where the open-plan apartment serves as the living room, dining area, kitchen, and bedroom rolled into one. It commonly has the smallest floor size among all types, making it more affordable than other condo unit types.

A unit is the measure of housing which is equivalent to the living quarters of a household, while an apartment is self-contained housing that is located in a building. 2. A unit has separate utilities, while an apartment can have utilities that are shared by the tenants.

Condominium is an invented Latin word formed by adding the prefix con- 'together' to the word dominium 'dominion, ownership'. Its meaning is, therefore, 'joint dominion' or 'co-ownership'.

Is an apartment and a flat the same? An apartment is a more commonly used American term for a cluster of rooms that could be over one floor. A flat is a British term for a set of rooms that forms a residence within one floor.

A buyer in New York has three fundamental choices. Whether he/she should buy property in: a condominium building, a cooperative building or a townhouse/brownstone. There are advantages and disadvantages to each and the choice is always a matter of individual preference.

Due to the smaller lot size, townhome residents pay lower property taxes than those in conventional homes. Homeowners association fees also tend to be lower when compared to condos. Owning a townhome is the same as owning a single-detached house. You can either finance the house or pay upfront in cash.

If you live alone, owning a house may not be in your best interest. Houses require high maintenance fees. When you face issues like plumbing and air conditioning, it will be up to you. Houses cost more to maintain than apartments.

When you're in your middle years or older, chances are you'll have a higher, steadier income and a better idea of where you'd like to settle down than when you were first starting out. You'll also leave yourself time to build excellent credit, which may qualify you for the best available mortgage rates and terms.

Will the IRS know if I buy a house cash? ›

The law demands that mortgage companies report large transactions to the Internal Revenue Service. If you buy a house worth over $10,000 in cash, your lenders will report the transaction on Form 8300 to the IRS.

A home is a long-term investment. If you buy a home as a primary residence, it can increase in value over time and provide a financial windfall when you sell. You gain equity in the home over time, which can provide a source of emergency funding if your financial situation takes a turn for the worse.

The number of millionaire renters has tripled in the past five years. More and more millionaires are stepping on the everyman's corner and renting apartments rather than putting down roots and money to become homeowners.

Becoming house poor can affect your ability to save for retirement, pay off debt or afford other purchases. It can create feelings of stress and anxiety around your finances and make you feel as if you're only one setback away from financial disaster.

You're “house poor” when you're spending a big portion of your total income on owning a home. Making sure you can afford all the costs associated with a home before you commit to a mortgage can help you avoid being house poor.

Age and condition. Typically, homes that are newer appraise at a higher value. The fact that critical parts of the house, like plumbing, electrical, the roof, and appliances are newer and therefore less likely to break down, can generate savings for a buyer.

Being able to feel relaxed and calm is essential for happiness at home, in fact 90% of those most satisfied with their home say their home always or often makes them feel relaxed. When looking at which spaces can offer us the chance to switch off, research found the living room and bedroom to be most important.

When you purchase a home, you pay for it each month. However, it's not just your mortgage payment that you pay. You also pay for insurance, property taxes, utilities and maintenance costs. When you're trying to budget for your future home, it can be hard to determine how much each one of those will cost a month.

Although properties can appreciate in value faster if they're in a desirable location, the fact remains that most condos appreciate in value at a slower rate than single-family homes.

HOA fees are charges levied on owners of many condominiums, co-ops, and certain neighborhoods. These fees cover the maintenance and upkeep of common areas such as shared hallways, elevators, lobbies, and parking lots. It will also usually cover snowplowing, gardening, and damage to common areas.

Why are condos harder to buy? ›

Loans can be harder to get for a condo because some lenders have strict requirements regarding owner occupancy and loan-to-value ratios. Condo owners will have to abide by the covenants, conditions, and restrictions (CC&Rs) of the complex or risk being fined, forced to comply, or sued.

Improvements to the kitchen often yield the highest return for condo owners. The kitchen holds many areas for improvement including cabinets, countertops, sinks, faucets, and lighting. Often considered the heart of the home, the kitchen can make or break the perceived value of a condo.

The cost of a condo will depend on several factors, including location, size and amenities. Condos can range from as low as $140,000 in Ohio to over $1 million in California, with an average price of $370,700 across the United States as of November 2022.

The HOA can get a lien on your home. The association typically can charge you for the overdue assessments, plus attorneys' fees, costs, late charges, and interest. The association might choose to foreclose its lien.

A condo, also known as a condominium, is a housing or residential complex in which there are separate units, with each unit being owned by an individual. When someone rents a condo, they're renting directly from the condominium owner.

The main difference comes down to ownership. Condominiums are owned by individuals and rented out privately (this is your typical landlord). In contrast, apartments are generally owned by property management companies who rent and manage all the units, creating a more standard approach and leasing process.

Community and amenities.

Condo owners participate in the maintenance of the common areas via the homeowners' association (HOA), so these common areas tend to be kept up nicely. Condo buildings sometimes also have more luxury amenities than apartments, including onsite parking, pools, gyms, or tennis courts.

The biggest difference between a condo and an apartment is ownership. An apartment is defined as a residence that is rented, often as part of a larger residential building. A condo can be similar in structure to an apartment — usually a unit within a larger residential building — but condos are owned instead of rented.

The origins of the word townhouse go back to early England, where the term referred to a dwelling a family (usually royalty) kept “in town” (meaning London) when their primary residence was in the country.

What are the disadvantages of a townhouse? ›

Townhouses are often built as part of gated communities or neighborhoods. Pros of townhouse living include affordability, HOA and shared amenities, and close proximity to neighbors. Cons of townhouse living include less square footage, less freedom about your home's appearance, and less privacy.

A townhouse, also called a townhome, is a type of house that has multiple floors and shares at least one of its walls with other residences. These buildings are often tall, thin and attached to other townhomes in a long row. They're most popular in urban and suburban areas.