Although condos and townhouses may have drawbacks, they are still great places to live. If you are thinking about buying a condo or townhouse, don't assume they are all the same. Each condo association has its own rules regarding pets, smoking, and overnight guests. Condo buyers beware of heating and cooling requirements, parking space limitations, HOA fees, and your individual needs before purchasing.

Why A Condo May Be a Better Option

A Condo Down Payment Is Usually Lower

A large down payment is often required to purchase a home. However, with condos, you may put down just 10% of the cost of your unit and borrow the rest from your lender — which means that you don't have to save up as much money before you buy.

A Condo Offers More Choices

Since condos are smaller than single-family homes, more units are available in any given area. This means that there are more options for location and amenities. If you don't like your neighbor's dog barking at night or if you want to live closer to a park, these things may be more easily accessible with a condo than with a single-family home.

You'll also have more choices for interior finishes and floor plans. Some condos even offer different styles of construction — townhouses vs. high-rise buildings — which can affect whether they qualify as condos instead of apartments.

A Condo Is Easier to Maintain

Condo living is more affordable than single-family homes. They're easier to maintain because you have a homeowner's association (HOA) that takes care of snow removal and lawn care. HOA fees are typically included in your monthly mortgage payment, ranging from $200 to several hundred dollars per month, depending on the size and amenities of your condo complex.

A Condo Often Has Amenities

A significant benefit of owning an apartment in a multi-unit building is access to amenities such as pools, fitness centers, and tennis courts frequently offered by condominium associations but rarely found in single-family homes. These extras can add value to your living experience and help offset the higher cost of condo ownership than buying a single-family home with similar square footage nearby.

Condo Insurance Is Generally Less Expensive Than Homeowners Insurance

Homeowners insurance (HOI) is more expensive than condo insurance because it covers more risks and liabilities. HOI covers damage to or loss of your property (including contents), damage caused by fire, flood, vandalism, liability for accidents on your property, and medical payments if someone is injured. Condo insurance doesn't typically cover these things.

Why A Condo May Be a Less Desirable Option

The following reasons why condos may be a less desirable option than homes.

Rules and Regulations

When you buy a condo, you own not only the actual unit but also own a small portion of common areas like hallways, elevators, and parking lots. As a homeowner, you're responsible for maintaining these areas.

Condos also have restrictions on what you can do with your property. For example, some condos only allow owners to paint their units in specific colors or install certain types of flooring materials. If these rules don't work for you, it might be better to buy a house instead.

Lack of Privacy

A condo does not afford the privacy of a single-family home or townhouse. However, still, a condo may be a better choice if you're looking for an affordable option that offers more privacy than a rental or apartment building. If you're single or don't have kids or want to have frequent visitors, this might be the right place due to their open floor plans and private outdoor spaces.

HOA Fees

"Homeowners' association" fees are typical in condos, but they're not always good. On the plus side, HOA fees can be used to pay for landscaping, parking lots, and pools. But they can also be used to maintain common areas of the building or compensate homeowners who want to rent out their units. If you're considering buying a condo, find out how much your HOA fees will likely be each month — and how that money will be spent.

Fees vary widely; some buildings charge a flat fee while others charge a percentage of your monthly mortgage payment or rent. It's also important to know whether these fees are mandatory or voluntary — some owners choose not to pay them because they don't want their money going toward things they don't use or need.

Which Is a Better Option for You?

Whether you're just starting or looking to downsize, purchasing a condo may be a viable option. These units offer flexibility, lower maintenance costs, and prices you can afford. For example, single-family homes in the suburbs will, for the most part, be more expensive than condos closer to the city center, especially if the commute to city and business areas is not too long. Remember that location is vital when deciding on the home that works best for you.