Determining what type of housing is right for you can prove to be a difficult task when you factor in what you need now and the future possibilities of job promotions, budget fluctuations, out-of-state moves, a marriage, birth of a child, children going off to college, etc.
It's important to choose a housing type that fits your needs and budget in the present moment and factor in what could happen in the next 5-10 years.
Types of housing include single-family detached homes, condominiums, duplexes, and townhomes, all of which have various pros and cons. Here is what defines these housing types:
- Single-family detached home - a stand-alone structure with space for a yard or garage.
- Condominium - an individual unit in a multi-unit structure. Residents have joint ownership of common areas, such as yard, hallways, stairways, parking, etc.
- Townhome - a unit having 2 or more floors and is attached to multiple similar units, sharing at least one common wall.
Consider the following when choosing a home type:
- Privacy & responsibility - Is it important to you to have complete privacy and control of decision-making in regards to your home? Are you willing to share amenities and decisions with neighbors?
- Home maintenance - Do you enjoy yard work and have the means for routine home maintenance or would you rather have someone else that takes care of those tasks?
- Budget - How much can you afford? Keep in mind that condominium and townhomes may be subject to homeowners association (HOA) fees. You’ll have to weigh the pros and cons of having less home maintenance to having an additional housing costs.
- Family size - Are you ok with living in a smaller home or do you need space? Is your family growing or are you looking to downsize?
Looking for more information about buying your first home? Download our free Mortgage 101 Handbook for everything you need to know about homebuying and home financing.