Condos vs. Townhomes vs. Regular home: Which is better? (Phoenix: apartments, foreclosure)

[GoGoLucky]

regular home being your standard single family detached house...

I know alot of people are going to say: regular home...

but I want some diverse responses...like people who have lived in condos/townhomes and their experiences...for starters what is the difference between the two?

I do know someone mentioned fees being accessed for owning a condo...anyone familiar with this?

Which is better as far as resale values; being able to rent it out, appreciation, equity, etc?

[TurcoLoco]

I do not know if the same rules apply in AZ but from what I can remember, with a Condo, you do not own the land but with a Townhome you do much like a regular home. Condos and Townhomes almost always come with association dues which annoyed the hell out of me cause often you did not get your money's worth (but it does include Home Owner's Insurance which is a plus), at least that was the case when I owned a Townhome in CA. Also with Townhomes and Condos, whether the garage is attached or detached, often the association own the garage refraining you from customizing it in pretty much any way. Condos definitely lose their value quicker than a regular house (SFR) or even a townhouse/home but what also makes a big difference is the number of bedrooms, overall square footage and front/back yard size (if applicable) and not to forget the location of the property.

[chicagocarol]

Don't live in AZ... yet (but soon) but have lived owned a condo, a townhome, and two homes, and IMO, I would never,ever buy a condo or townhome again. I don't know about AZ, but here, the "Association monthly fees" are high, the Association is run either by fellow owners or a business, and the rules & regulations (Declarations) can be hard to deal with... sort of like an HOA but with rules & regs that can be very restrictive on what you can and cannot do. a Board can pretty much rule, and can change rules while working within the limits of the declarations. You still do need to have home owners insurance (here anyway) for anything that could happen inside the home, outside is covered by the association tho. With a condo or townhome, you usually do not own the land on which your home sits- you own the 'inside' only... therefore cannot make changes easily to the outside since you don't own it- same for landscaping outside, garage,etc. They do not appreciate in value as quickly as a regular home does, or at the same rates.
If it were me, I would much rather own a small home than a condo or townhome again. Maybe throw into the mix, your age... if you are young, just starting out, maybe a condo/townhome is the way to go because of price, and you would be building equity toward a future time when you could sell and buy a regular home, if that is what you want. If you go with a condo/townhome and do plan to sell later, you do have to think alot about location, age of home, number of bedrooms, etc. so that your place would be saleable at a later date. And- how well does the Association keep up the outside of each home... do they have money in 'reserve fund' for ffuture mainteannce needs,etc? I have a friend that recently bought a condo in Mesa- plans to retire to it in the next year... The decision was based on what they did not want to do... which mainly (to them) deal with the outside upkeep at their age.
With the market adjusting, do look at all the pros and cons before making a decison which way to go. I can only speak for me, but my first home was a condo, moved up to a townhome, and couldn't wait for the time when I could go to a regular home... but that's me, not necessarily the right way to go for everyone. The very best of luck to you.

[lola8822]

Originally Posted by GoGoLucky

regular home being your standard single family detached house...

I know alot of people are going to say: regular home... Depends on your situation.
but I want some diverse responses...like people who have lived in condos/townhomes and their experiences...for starters what is the difference between the two? I have lived in both and the main differences are; 1. Townhomes do not usually have yards....so if you don't need a yard that's a plus for townhomes. 2. They are usually closer together.....so if you don't mind that there is another plus to townhomes. 3. The "homeowners" fees are much more because you now have to pay for the developments maintinance of the common area's instead of say....mowing your own yard. lol. Honestly, having owned both, I find the resale values to be better on detatched single family homes. My uncle is currently selling his cave creek townhome and is having a real problem with it.
Depends on your situation....if you don't want the maintinance of a home then go townhome.

I do know someone mentioned fees being accessed for owning a condo...anyone familiar with this?

Which is better as far as resale values; being able to rent it out, appreciation, equity, etc?

Good Luck!!!

[Ponderosa]

There was a time when the only way to get rid of a condo in Phoenix was to burn it for the insurance - or so it seemed. Phoenix has never been a condo-friendly place. The price increases of the past couple years pushed a lot of people into condos who wanted ownership, a piece of the boom or whatever and could not afford a single family residence. A heck of a lot of those condos are in foreclosure now. There are entire condo conversions that are empty.

On the other hand, the aging of America suggests some demand for condos by retirees wanting to avoid maintenance issues. Maybe that will shift the picture. Still, I think a condo is poor second choice to your own four walls, a backyard and a pool.

[mortimer]

One problem that I saw with "condos" is that many condos are
just apartment conversions. They were never meant to be a
durable building that would last for decades - rather to be an
inexpensive place for someone to live.

My sister was looking for housing in the Phoenix area and as I tagged
along, I saw places that were just 2-bedroom apartments that someone
had 'magically' 'converted' to a condo and then priced it to $250-350k.
The floors were creaky, cabinets were old and crappy, etc.

There are some nice condos in the Fulton Ranch development in Chandler
(NW of Arizona and Chandler Heights) that were planned and built as
condos. The have some attributes of apartments, but have a nicer 'look
and feel' and not just because they are new.

However, the price per square foot is approximately double that of pretty
new free-standing houses nearby.

[Bummer]

Originally Posted by GoGoLucky

regular home being your standard single family detached house...

I know alot of people are going to say: regular home...

but I want some diverse responses...like people who have lived in condos/townhomes and their experiences...for starters what is the difference between the two?

I do know someone mentioned fees being accessed for owning a condo...anyone familiar with this?

Which is better as far as resale values; being able to rent it out, appreciation, equity, etc?

Unfortunately, GoGo, condos get a bad rap mainly because there are so many types of condos and too many people group them as one. Some condos are nothing but Apartments that have been converted, either poorly or lavishly, mainly for the financial gain of an unethical contractor.

Having owned a number of Single Family Homes as well as a couple of Townhomes, I consider my current Patio Home (officially classified as a PUD but referred to as a Condo) is the best choice for my lifestyle. I have plenty of space (3 bedrooms and 2 full baths with 1400 plus sq ft), an attached two car garage right off my kitchen with plenty of outdoor living space. Appreciation (not my primary concern) has been as good as if not better than any of my previous homes. All other aspects of home ownership are equal except I enjoy the convenience of no heavy duty exterior maintenance allowing me the luxury of travel without concerns or responsibilities.

HOA's, existing with both Single Family Homes and Condos, offer both positive and negative benefits and vary greatly.

Bottom line: no single answer to your question but I prefer my Patio Home.

Good Luck

[Magnum Mike]

Although I'm a big supporter of high-rise condos because it gives home buyers with another option that has benefits (no yardwork, little exterior maintenance, etc) I still prefer single family homes, and not the ones that are in a HOA.

I consider myself very fortunate because my house was built in 1998, in a very good area that was developed 35 years ago, where just east of the neighborhood, there are some real-estate properties that are valued at $1 million. It's also within the city limits, not way out in the boonies, so my commute to downtown is only 9 or 10 miles. Plus, my house is not in an HOA neighborhood.

GoGoLucky, many builders are putting their new subdivisions in older and established areas within the city, so that's an option you might want to consider.

[Bummer]

Originally Posted by Magnum Mike

Although I'm a big supporter of high-rise condos because it gives home buyers another option that has benefits (no yardwork, little or no exterior maintenance, etc) I still prefer single family homes, and not the ones that are in a HOA.

I consider myself very fortunate because my house was built in 1998, in a very good area that was developed 35 years ago, where just east of the neighborhood, there are some real-estate properties that are valued at $1 million. It's also within the city limits, not way out in the boonies, so my commute to downtown is only 9 or 10 miles. Plus, my house is not in an HOA neighborhood.

Great point, Mike . . .

However, you must admit, your home is much more "unique" than typical.