Pros and cons of condo vs townhouse vs single family home on a $150K budget? (Minneapolis: apartment, renters)

[Haver]

I'm still in the middle of my great American dream experiment, but I'm still having sleepless nights over the advantages/disadvantages of my choices. I can go condo and never have to worry about repairs and shoveling (I'm not very physical nor handy), or I can get a townhouse with a lot more space but ... for 150K? What would I get, cardboard? Or I can get a sfh but I'd then have to commit a ton of time and effort to keeping it from falling down since I'd probably only be able to afford something from 1910 with dodgy wiring and lead paint. I'm leaning towards a condo with exercise equipment since I'm too lazy to drive to the gym in January, so now my choice is a shoeboxl in a good neighborhood (Centennial Lakes Park) where there's probably some busybody carrying around a clipboard and a whistle, or a large and generic "good luck selling it, buddy" unit next to some guy with a massive beer can collection.

I'm a single guy working in Information Technology, and pretty career focused.

If this last paragraph is a jumble of inchoate anxiety, then I have accurately portrayed my thought process....yikes! Help!

[golfgal]

If I were in your place I would look at it this way, in a condo you aren't any better off then living in an apartment building--neighbors above, below and next to you. In a townhome you could possibly get an end unit and only have to deal with neighbors on one side and not have to worry about maintenance. If you are willing to live in the city proper in an ok but not great neighborhood you can find a small home, probably 800 sq ft or so for under $150,000. I know several people that have done just that in Minneapolis in the past few months. You get the benefit of having your own home, your own garage and you can pay a neighbor kid $20 to shovel/mow your lawn.

[nick is rulz]

you could easily find a decent home in Minneapolis proper for under $150k and one that isnt in a terrible neighborhood, either.

[Lillietta]

Think about resale. Condo - nah. There are such a surplus of townhouses, that even that is not a good investment; but if you do go that route do get an end unit; they sell better. Check out Craigslist for townhouses or single family homes. If you're handy around the house, you can get a house for $150k and fix it up.

[Minnehahapolitan]

It really depends on the area you want and how you use your house. A single-family home is going to be cheaper in the city or immediate suburbs. A townhouse will be easier to find in the suburbs, but resale is harder. It is harder to resell a downtown condo; but you could prob. get a better deal on one right now. Feelings on yardwork? Where do you work?

[excelsiorgal]

I agree with the other posters -- you'd be better off getting a SFH in the city or near-in 'burbs. Small is beautiful! I used to have a small SFH years ago, bought on the cheap (at that time) -- perfect for a single working person. SO much better than having immediate neighbors.

Another option: you could buy a duplex in either city. You'd qualify for a bigger loan because of the income. (Maybe add an incentive [rent reduction or ??] to your renters for doing yard work.) Have had friends who have done this -- their mortgage payment was almost nothing.

[sugarbeet]

I thought exterior maintenance (mowing, snow removal, etc.) were generally included in your HOA fee for a townhome??? I know that's the norm in other places I've lived, but perhaps it's different here.

If maintenance is included, it seems like a townhome would suit your needs well. There are surely a lot of new and newer townhomes on the market right now at good prices.

[Haver]

Well, right now I just want to see the pros and cons of each and keep a good discussion going. I'm neither handy nor observant, so I'd rather trust someone else's eyes and hands when something is wrong -- I might catch it too late to do any good. I know $150K can buy a well maintained condo, but I'm not sure if that is enough to "beat the odds" when buying a townhouse or sfh as far as questions of quality are concerned. I don't want to buy someone else's problems.

And you know what? I'm not saying "I'd really like a sfh but all I can only is a condo" - there are advantages and disadvantages to both (all 3 counting townhouses) and that is the conversation I'd like to see here, not "well, here is how you can get into a sfh". I have to admit I am rather attracted to the prospect of being a two minute walk from one of the Twin City's most beautiful parks (Centennial Lakes) where I spend a lot of my free time when I can. But I am also drawn to the simple beauty of spending a weekend afternoon mowing the lawn and puttering in the garage and I could live happily with that as well.

[golfgal]

Originally Posted by sugarbeet

I thought exterior maintenance (mowing, snow removal, etc.) were generally included in your HOA fee for a townhome??? I know that's the norm in other places I've lived, but perhaps it's different here.

If maintenance is included, it seems like a townhome would suit your needs well. There are surely a lot of new and newer townhomes on the market right now at good prices.

It generally is included but those HOA fees can be steep making living in a townhome MORE expensive then a SFH. I know a lot of HOA that charge $200+/month for association fees--you can hire someone to do all your lawn care/snow removal for MUCH less then that.

[sugarbeet]

Often, the pros and cons of each are very personal. Some here have mentioned that they dislike the idea of having neighbors above, below and beside, as in a condo. That doesn't bother some people at all, in fact, they like that level of interaction with others.

You say that you like being near parks, but you would also not mind mowing the lawn, etc. You can have both if you want it.

It's my opinion that your only real concern with buying a condo in today's market is that there's so much supply. If you have to sell within a couple of years you could be in trouble. However, no matter what or where you buy, you should be planning to stay there for years. Although life changes happen, if you have any plans to move in less than five years I would not suggest buying anything.

It's great that you have price in mind already. Step two, I suggest, is to decide some of the cities/neighborhoods where you want to live. Then step three is the type of home because steps one and two will vastly narrow the field of available home types for you.

As golfgal mentioned, though, you will want to consider HOA fees if you purchase a condo or townhome. You'll have to shell out that money on top of your mortgage payment every month. So really, if you want to stay within your budget you will have to spend less on an attached home than on a detached home.