SF vs townhomes (Dallas, Plano, Carrollton: real estate, rental, HOA)

[Blodhi]

Hi, I am planning to buy a home in Carollton/Plano/Frisco. I have set a limit of 210k and don't want go beyond that. In the areas I mentioned above, they have townhomes and SF homes within my range. I am not sure which one to opt for, I am more inclined towards TH since it's low maintenace, easy to find in the areas I am looking at and are slightly less expensive than SF.

I know about the HOA dues and I have been told about the possibility of lower appreciation of TH. But I am thinking since there are so many Being built around these areas these I days so acceptance of living in a TH would be more in the years to come, and when I plan to sell it, may be in 5-6 years.

Given the above plus the fact I have my first child on the way what would you guys recommend a TH or SF? BTW this will be my first time buying a property.

Thanks in advance!

[txgolfer45]

Definitely go with a single family home, if you can swing it and it has what you want in it. Townhomes and condos just are not as popular as single family homes. Resale on the single family home will be better.

[BESITOSDECOCO]

Originally Posted by Blodhi

Hi, I am planning to buy a home in Carollton/Plano/Frisco. I have set a limit of 210k and don't want go beyond that. In the areas I mentioned above, they have townhomes and SF homes within my range. I am not sure which one to opt for, I am more inclined towards TH since it's low maintenace, easy to find in the areas I am looking at and are slightly less expensive than SF.

I know about the HOA dues and I have been told about the possibility of lower appreciation of TH. But I am thinking since there are so many Being built around these areas these I days so acceptance of living in a TH would be more in the years to come, and when I plan to sell it, may be in 5-6 years.

Given the above plus the fact I have my first child on the way what would you guys recommend a TH or SF? BTW this will be my first time buying a property.

Thanks in advance!

I would recommend a SF over a TH. I have lived/owned both. And all of the above you mentioned is very true. But I don't know about the acceptance of living in a TH over a SF home in the future....I think because it ultimately makes for great rental property. Therefore, it may be more difficult to resale it in the end in comparison to reselling a SF home.

[dweej]

I'll put in a third vote for a single family home. Most home buyers want a SF home, but are willing to consider a townhome, whereas there are very few who are only interested in townhomes and have to be persuaded to look at SF. I hope I'm making sense....basically the SF home will appeal to a higher percentage of buyers in the future so will be the better investment (and you'll probably enjoy it more too! Barbecues, baby being able to run around in the back yard ).

[nsumner]

I too agree that a SFR will give you better quality of life, you would need a yard, no matter how small for when your new baby comes along. They grow very fast. HOA dues are not tax deductable, you don't know who will be sharing a wall or 2 with you.

Historic appreciation rate for townhomes in DFW has been very discouraging over many years, I personally don't see that changing any time soon.

If you want a low maintenance yard, look for homes with zero lot lines.

Naima

[loves2read]

the changing demographics are showing that over 50s are downsizing from their larger--family-centric homes into smaller homes but they usually want a one story home and townhomes don't usually come that way...
IF you found a townhome in a neighborhood with good schools, low crime, access to walkable shopping and recreation activities likes parks for jogging--then I would say that would be the best option because that area is likely to appreciate...
but because of how townhomes are constructed it is unlikely that you will see the same appreciation in a townhome as a SFR--that is why most people say to go that route

townhomes are not family-oriented and most people who can afford to buy a home are buying as families--so the % are geared for those sales---
a zero-lot home has some +++ over a town home in that there are no shared walls ans some of them are single floor but they are also probably more expensive per sq ft as well

you always run into the fact that HOA dues are not a tax deduction even in SFR

[caligurltotx]

I would agree with all the above. Personally, I am so over sharing walls with others. It's like a crap shoot and just because others are owners too doesn't mean they are going to be any more considerate. Take it from a former condo owner with nightmare neighbors above me!

Now when it comes to TH resale value I would say it would depend on where you are in this country. I don't know how great it is here in DFW. However, if it was a place like CA or NY then it would be a different story. My old condos were in the $80's, $90's during the last real estate down swing in the late 90's, and selling for approx $400,000 during the 04/05 upswing. And even now they are still in the upper $200's, so still a good return for someone that paid $90,000.

You could look at it like the HOA dues can be substituted for hiring yard maintainence for a SFR.

[Blodhi]

Thank you everyone for your advice, It seems all of you suggesting SFH. I am now thinking about SFH as well, however, there is one location that I really like and the only new property there are TH which are not expensive and I really like them. Schools are very close by, mall is close by and so is the Airport. The locatio I am talking about is in Carrolton and just off 121, builders are HR Hortons and community name is Villas at Indian Creek. Also, I am thinking I will rent the TH later and not sell it. What do you guys think?

Again thanks for your response in advance.

[momof2dfw]

Single family home is the best way to go. Unless your buying it to rent it out now...... and still I would not buy a TH not even to rent out in the Dallas area. There are older townhomes in Carrollton so go drive thru those communities. They have NOT done well. There is a very tiney TH community in north Carrollton right off of Josey that the developers could not even finish. There are duplexes off of Rosemead on the south side just east of Marsh....... they haven't done well either. I've been in some of those AFTER the people moved out and it was DISGUSTING! And this was still when it was considered "new". I'd REALLY second guess the TH decision ESPECIALLY if your looking at DR Horton. They are HURTING!!! They might not be able to finish out the entire community and then your stuck with a half finished TH development that might sit there for 10+ years before someone else decides to finish it out. Your only option then would be to rent it out and there is no guarantee that you could get the rent high enough to cover the mortgage, insurance, property tax and HOA dues. Especially if the community is not attracting higher rent tenants.

The only "good" townhomes in the Carrollton area that have seemed to hold up decently are in the "Via" area off of Keller Springs and Kelly Blvd. Still questionable but if your REALLY wanting a TH you need to go look at some that are not that far away from where your looking and see how the older ones have held up. And also the ones in the Country Place area. And these have STILL not seen much in the way of appreciation when it comes to value and some are being "ditched". All of these were built early 70's.

There are a few other areas in Carrollton with a smattering of townhomes and condos. Jamestown is one right off of Josey just south of Newman Smith HS. Eh.

In other parts of the country and even in areas of Dallas like Uptown, Knox-Henderson, etc the townhomes and condos do well. But NOT in the suburbs at all.

[caligurltotx]

What are the SF prices in the area that OP loves? Bodhi I say if you really love the area and TH is all that is in yr price range then in my opinion go for it. I think being in the location that makes you happy trumps all else. It is still an investment, an asset to yr portfolio. And I don't know yr age, but if you are young then in 30 yrs it can be retirement income.