Real estate inventory across the Valley is rising and people have more options for purchasing a home. Deciding which type of home to invest in can be a difficult decision but understanding the benefits of each property type can make the choice easier.
The first step is to determine if you are purchasing the home for yourself, or if you plan on making it an investment property. Understand the different types of properties and what suits your goals best. There are three types of properties to consider: condo, townhome and single-family home. Each property comes with their own unique advantages and disadvantages. If you’re looking to invest in property, here is a list of pros and cons to figure out which type is best for you.
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Pros and Cons of Buying a Condo
Pros: Condos are smaller, individually owned units that require less maintenance and have access to various amenities on the property. Coming in at a lower cost than their single-family counterparts, condos attract many first-time renters or older renters looking to downsize.
Cons: Unfortunately, communities often have high-cost homeowners association (HOA) fees to maintain the property and amenities as well as strict rental policies. The large market of condos makes negotiating prices a challenge as availability of units is always rising.
Pros and Cons of Buying a Townhome
Pros: Similar to the convenience of a condo and larger in size, townhomes are considered single-family homes at a more affordable price. Townhome developments offer amenities such as pools or clubhouses that attract families.
Cons: Since townhomes are built closer to one another, units share at least one wall with a connected neighbor which could potentially lead to noise issues. Developments also require hefty HOA fees and implement rental restrictions.
Pros and Cons of Buying a Single-Family Home
Pros: Single-family homes give residents more privacy. Low maintenance costs and affordable property taxes attract couples and smaller families. These types of homes are always high in demand and make it easier to rent and sell than most types of properties.
Cons: For homes without an HOA, tenants are responsible for maintaining the property themselves which can be seen as an inconvenience to renters. Also, it is a higher upfront investment for buyers.
Residential real estate can be a great long-term venture. With the rising inventory, now is the best time to look for what’s right for your lifestyle and investment interests. Make sure to do your homework and understand each type of residential real estate property before coming to a final decision.
Author: Rich La Rue is the Designated Broker for HomeSmart Phoenix, the flagship brokerage operation in the HomeSmart system. For more information, visit www.richlarue.com.
