This is part two of my series on how to decide if a condo or townhouse is right for you. Since I have two friends selling their places right now (one is a condo and one is a townhouse!) I thought I’d use their places as examples. In the last post, we examined how ownership and financing of condos works. Now, let’s talk about townhouses and how they work!
The Townhouse Option:
This is a great example of a townhouse for sale in Downtown Tacoma’s Hillside / McCarver neighborhood. This neighborhood is very new and full of different little townhouse neighborhoods that have sprouted up over the past 10 years. It’s attractive because the places around are fairly new and affordable, but also close to the hustle and bustle of downtown. They’re about 3 minutes from the freeway, so commuters LOVE it here.
This awesome townhouse is listed with my friend Karen at Windermere, and is a 2 bedroom 2.25 with a den/bonus room for $199,000. The dues are $180/month.
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The first thing you might notice if you read “Should you buy a condo or a townhouse? Part 1: Condos” is that the townhouse option is more affordable- this is pretty typical. Most townhouses in Tacoma cost less per square foot than the condos- though that can vary a bit based on the quality of the construction of either.
Here’s the breakdown on how townhouses work:
1. Dues: You might notice the dues (at $180/month) are much less than the condo. This is because you’re not paying for as much in the way of common areas and you are responsible for your own homeowners insurance coverage for the structure (just like with a single family house). The dues at these particular townhouses (Metro City Homes) are actually a teensie bit higher than some of the others in town because they are saving in advance for some things like the roof and paint. Not all townhome communities do that (when the day comes everyone will be expected to split the cost) so it is best to find out before you buy so you can plan.
2. Financing: Townhouses are financed pretty much just like houses. FHA, VA, Conventional Financing, whatever. It’s much more straightforward to get a loan on townhouse most of the time- especially with FHA and VA loans.
3. Renting it out: Renting out a townhouse in Tacoma is pretty straight forward, which is one of the things that make townhouses attractive to buyers who are planning to keep their place once they outgrow it or if they are transferred for work. Typically it is more difficult to rent out a condo (because of restriction on the number of rentals) than a townhouse. This is something to DEFINITELY ask your agent about as you’re considering either option.
Conclusion: Townhouses are awesome because when they are easier to finance and you have a bit more control and flexibility. There still is still not much in the way of a yard, but there’s probably a little something something if you have a dog. If you want to compare it with condos, check out part 1.
