What type of home best suites my needs?

If you are on the market for a new home, it is important that you know the difference between a single family home, a townhouse, a condominium or mulit-unit home (Du Plex, Tri Plex or Quad Plex).

Familiarize yourself with the advantages and disadvantages of each so that you make a wise decision about your home purchase.

Single Family Homes
The single family house is the most common type of housing in the United States. This type of housing dwelling designed for a single family and has its own land.
The house and the land are purchased and sold together. Unlike townhouses and condominiums, single family types of housing are not attached to other homes. Aside from regulations from your neighborhood or subdivision, you are free to do whatever you would like with your home. With a single family home, you are responsible for the cost of maintaining and repairing the home, whether you do it yourself or pay someone else to do it.
In addition, landscaping and lawn maintenance are also your responsibility. If you want to have a pool or playground in your backyard, you will have to provide such amenities.
The good thing about single family homes is that you have the freedom to make whatever changes you with. Improvements to your home can greatly increase the resale value, which is already higher than that of other types of housing.

Townhouses

A townhouse is the middle-ground type of housing between a single family home and a condominium. They share characteristics with both types of housing.
In most cases, a townhouse is attached to at least one other house. When you own a townhouse you own the home as well as the property on which the home sits.
Since townhouses are a part of a larger community, you can usually find many of the amenities that you might find with an apartment. This includes swimming pools, fitness centers, tennis courts, etc. While you are responsible for some of the maintenance and repairs, it will not be to the extent of that of a single family dwelling. Townhouses are often part of a Home Owner’s Association, to which you are required to be a member.

Condominiums

A condominium, condo, for short, is a type of housing that is best described as an apartment that you are able to own. When you purchase a condo, you own everything inside your walls and share ownership of common areas with your neighbors.
Often condo ownership requires you to pay a monthly fee that covers repairs and maintenance to the common area. The condo association handles exterior maintenance and repairs, but in many cases, you contribute to the cost through dues or assessments.
Condo prices are often more affordable that those of single family homes and townhouses. There are often a number of amenities available for you to use. You have a minimal responsibility for exterior maintenance and repairs.
It can be hard to resell a condo. They are known to spend a longer time on the market than other types of housing.

Multifamily units

Multifamily units are a great way to buy a home and offset your mortgage payment by renting out an attached unit of the home. These are traditionally used as investment properties however they are perfect for extended families that need care.  Let’s first analyze the bright side. The extra income from the additional units will assist with payment of the mortgage.  It does not take much capital to purchase a two family home. It is very easy to purchase a two family because the banks consider this type of property comparable to a single family home and not commercial property.  A multi unit property that has up to 4 units still qualifies for an FHA or VA loan.

Another bright side of purchasing a two family home is the pride of ownership.  Never discount this important benefit.  When the owner has pride in his property, you can tell from miles away.  Such owner’s properties tend to be clean, neat and could be a very wonderful place to live.

Also, another interesting benefit is that when the time comes to sell your property. In many neighborhoods, selling a two family home is easier than a single family home.  The reason is for the same reasons you are considering your potential purchase.  A tenant will assist with the payment of the mortgage.

Negatives. What happens when things go wrong?  In most cases, what goes wrong is the relationship with the tenant.  You are an owner / user and the other party pays you to live in a separate unit, but in your house. Many complications can arise. Some might be legal, but some could be plain personality differences.

Without getting into to the many legal issues, your commitment to being a landlord is a very serious one and to which you will be held accountable. In order to better understand your relationship with the tenant, my advice to you is to contact a real estate attorney.  Ask him all your questions.  It is important to know your responsibilities in advance. Also, beware that every state and town can have their own rules.  So seeking good advice is important.

Being a landlord is not for everyone and you need to think many times over before you assume the responsibility. If you are ready and you are willing to work hard at managing the tenant, buying a multifamily home might be the right solution for you.

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