If you want to own your home, but you don't want the responsibility of taking care of a bunch of property, a townhome can be a great compromise. A townhome has minimal outdoor space, but all of a normal home's indoor space spread out over multiple levels. When it comes to buying a townhome, there are a few things you are going to want to understand about the process.
Important Thing #1: Affordable Alternative to a Traditional Single-Family Home
First, townhomes are often seen as an affordable alternative to traditional single-family homes. They tend to cost less than a similar single-family home made the same year and about the same size, as townhomes generally come with less property than single-family homes. The lack of property can drive down the cost of a townhome in contrast to a single-family home.
Important Thing #2: Tend to Be in Fast-Growing Areas
Townhomes tend to be located in fast-growing areas, where there is a demand for single-family homes but not a ton of land available. As townhomes have very little space outside of the space that the home takes up, townhomes are often built together, creating a neighborhood of townhomes.
Townhomes often share a wall with the neighbor next to them, giving a townhome neighborhood more of an apartment-type look to it.
Townhomes tend to be located in urban areas and fast-growing suburbs if you are looking at newer townhomes. Older townhomes tend to be located in areas that were fast-growing when the townhome was built.
Important Thing #3: Tend to Be Part of Homeowners Associations
Next, townhomes tend to be part of homeowner's associations. That means that, in addition to the mortgage, you will have to pay monthly or yearly homeowner association fees. The HOA will set rules that are used to govern the visual appearance of the community. There are more restrictions on updating and maintaining your property when you are part of an HOA. It is essential to read and make sure you are okay with the HOA terms of any townhome you are interested in. HOA can help the property retain its value and keep the neighborhood looking nice.
Townhomes are a great alternative to regular single-family homes. They are affordable and tend to be located closer to the action where they are built. Most townhomes are part of an HOA, so you need to be comfortable with living under the terms of an HOA and paying HOA fees.