Are townhomes and condos different? If so which one is a better investment for my first home

In a good market, condos would be the last property type to increase in value, and in a bad market, would be the first to go down in value.. they also have much more restrictions than town houses.. but better than town houses are single family homes... 3 bed/ 2 bath/ 2 car garage, would be your absolute best bet.. this property type would be the first to increase in value during a good market and the last to go down in a bad market.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Hi Kelly,Condos typically have an HOA. A townhouse can be a condo or it can be an attached single family residence. If it is a an attached SFR, there is typically not an HOA. Condos are hit with an extra .750% to the price (not the rate) if you are doing a loan that is over a 15 year term and if you are putting down less than 25%. These pricing adjustments are not in place for an attached SFR. This is for Freddie Mac and Fannie Mae loans. We are seeing more and more townhouses that are being built as attached SFR because of these rules. Also - any property that is a condo my have restrictions on how you use the property such as if you see yourself renting the property in the future. There may be limits to how many in the project can be rented with a condo. If there is more than 50% rental units, financing might be an issue for your purchase and for resale. As always in real estate - location is the most important factor when you are purchasing a property and thinking of resale. I hope this helps.

Townhome is your best bet. It avoids many of the problems Mike has shared.

Townhomes generally have less restrictions than condos. Out of the two options, a town home is generally a better choice for buyers.

Williams answer pretty much covers it!

Which the best investment depends on your market and who you plan to rent the property to. students, professionals, family is iit in the city or suburbsalot to consider before you by

Unless you are in a HOT real estate market condos or townhomes are not a good purchase from an investment stand point. If you are buying either of these you best on plan staying for a long time. I would advise against it for your first home because first homes are typically short term. William @ Velosity touches on it pretty good.

They both pretty much rank at zero - However - If I had to choose - it would be a townhome. Call me and I'll tell you why - Andrew 800 813 3291

A Townhome or Condo both have a place in the market. Both were completely over built from 2000 - 2006 and suffered the biggest loss in value during the crash. Many of them are today an awesome value... But a single family home, generally speaking, is always going to be a better value holder. From a lending standpoint, townhomes are easier to get financing on, and therefore easier to sell. Condo financing is much more difficult, and therefore harder to sell as fewer people can meet condo financing guidelines.

- as noted there are some major differences in how they are treated for financing purposes. About ten years ago, every condo project was gettingitself approved by FHA/HUD so that their purchasers could get financing. Unfortunately, many condo associations have let this approval lapse, thinking it is not worth the time and trouble. When they do that, they cause the value of the condos in the development to drop -- as they no longer qualify forfunding through FHA/VA/Fannie/Freddie. Basically, you would be looking at having to pay cash, or the seller would have to do the financing himself.For these reasons, plus what was noted below the Townhouses would be better of the two.I am located in Federal Way, and live in Tacoma. If you have any other questions, I would be happy to work with you so you can determine the bestsituation for your plans and goals.