If you’re a first time homebuyer, chances are that you could be unclear regarding how a condo and a townhouse differ. You could be surprised to learn that the difference between a condo and a townhouse refers to the home’s legal ownership. Let’s delve into this a little more:
A condominium (condo) is a unit that you own, excluding the land associated with the property. That means you own the inside and outside of your home’s walls, but nothing from an exterior sense. Condos can be vertically structured, which means that you could have neighbors above or below your unit. When you own a condo, you are obliged to join the association through which you will pay your yearly insurance. As a condo owner, you also co-own the entire condo structure with your respective neighbors.
Unlike a condo, a townhouse is a unit that you own, including the land associated with the property. You own the inside and outside of your home’s walls, and all of the land associated with your unit. Townhouses are only horizontally structured, meaning your neighbors will only be to the left or right of you. In general, you won’t have an association living in a townhouse.
Neither condos nor townhouses are great investments in terms of resale value. However, buying a townhouse over a condo seems to have favorable benefits in terms of property management and independence.