Choosing between a Single Family Home vs. a Townhouse
The search for a new home can be daunting. Working with a real estate agent, getting approved for a loan, saving up for a down payment, and going through escrow is enough to scare many house shoppers away from the whole situation altogether, not to mention the commitment of paying a mortgage for the next 20-30 years.
For people that are ready to leave apartment living behind but aren’t ready to take on the responsibilities and hassles of owning a home, it may seem difficult to find a compromise. Where can a resident enjoy the experience of living in his or her own home without the hassle of buying a house?
Luckily, there are options that exist beyond apartments and single-family homes. Renting a townhome allows you to enjoy your privacy and autonomy without the hefty price tag of a single-family home. What if you could rent a family-style home without the challenges of maintenance, upkeep, and paying a mortgage? Maybe you really can have it all.
At Woodgate Townhomes, we’re devoted to finding the right home for your unique needs. Read on to learn the difference between single-family homes versus townhomes and decide on what is best for you and your family.
Cost Comparison
Buying a single-family home requires more money up-front as compared to renting a townhome. The down payment to purchase a home is invariably higher than the security deposit you’d need to pay when renting instead.
Whereas a down payment for a home can range from 5% to 20% of the purchase price, depending on the lender, a security deposit to rent a home is usually the price of one month’s rent. It’s also harder to get approved, due to the importance of credit scores. This may be something you’ve never worked on before.
When you consider the fact that some townhomes are actually bigger than single family homes, you may be getting more bang for your buck by saving up and renting a townhome instead.
Homeowners also have to make sure they have the funds necessary to cover the down payment and monthly mortgage payments, yearly HOA fees, pest control, lawn care, general upkeep, as well as any repairs or maintenance issues they’ll put toward the house once they move in. All of this can seriously add up. In many cases, new homeowners find themselves investing a lot of money into updating their new home during the first few years of home-ownership. In addition, new homeowners should plan for higher monthly utility and maintenance costs (including yard work, if necessary).
In comparison, renting or buying a townhome requires much less cash upfront. Renting would usually require the first month’s rent as a deposit. Those who choose to rent a townhome might expect lower utility bills as compared to living in a house. In addition, if tenants choose to live in a townhome community that offers certain amenities, they might find that yard work, pest control, and other maintenance concerns will be taken care of by the community staff.
Responsibilities
There are many responsibilities associated with purchasing and living in a single-family home. Homeowners have the sole responsibility of repairing structural issues, plumbing problems, and any other external and internal defects associated with the house. Floods, water damage, and pest control all fall upon the homeowner as well. As the owner and operator of the property, all legal liability incurred on their property is also their responsibility.
On the other hand, townhome communities take responsibility for certain features of the land. In many cases, the exteriors of townhomes are cared for by the community to ensure a neat, uniform look and theme. Community spaces are well kept, and many townhomes, such as Woodgate Townhomes, offer on-site maintenance services including, quarterly pest control as well as yard work and lawn mowing.
Flexibility
Source: Woodgate Townhomes
A noticeable difference between single-family homes versus townhomes is the notion of flexibility and mobility. Owning a house is a long-term commitment for the homeowner. There are financial responsibilities associated with ownership and moving from place to place becomes more difficult. Those looking to buy a house have to decide if they would like to live in a certain neighborhood for a longer period of time because moving away takes up a lot of time and monetary resources.
If the homeowner decides to move, he or she must find another agent, put the house back up for sale, and go through the escrow process again (this time as the seller). Making the decision to own a home means making a decision with far-reaching ramifications that doesn’t provide for much flexibility if you want to live somewhere else in a few years.
In comparison, the flexibility that comes with renting a townhome provides far more freedom for the resident. Townhomes can be rented for a short period of time, such as six months or a year. By doing this, residents can get a feel for the neighborhood and become acquainted with the community without having to commit to any one location for the long term. This is a great way for families to decide where they’d like to live more permanently.
Renting a townhome also provides flexibility for people and families in different situations. Depending on their cash position, asset position, current cash flow, credit score, and loan options, some may find it difficult to acquire a reasonable home loan and benefit greatly from the opportunity to rent a townhome.
Parents who have to change jobs from time to time benefit greatly from the flexibility of renting a townhome, knowing they can provide a secure space for their loved ones while knowing they can move to another neighborhood if work circumstances change. Students with roommates can rent a townhome for the short term and move out once the school year ends.
Renting a townhome also makes room for certain lifestyle needs. For those who love to travel and don’t have time to maintain their homes, a townhome that handles maintenance and upkeep is preferable. For retirees or elderly residents, having on-site staff and lawn care provided for them at a townhome community may be the most desirable option.
Living Experience
The most important question is what experience you’d like to have while living in your home. It’s crucial to consider the location of the single-family home or townhome, what needs your family members require, and how much time you want to invest in home improvement.
Living in a Single Family Home
The old adage “location, location, location” when it comes to finding a place to live rings true even today. If you choose to purchase a single-family home, you must consider the community you’re moving into. Due diligence on your part is key.
For example, if the living experience you desire includes a safe neighborhood, friendly and caring neighbors, and living near great schools, keep those priorities in mind while house hunting and do your research before making an offer. Check on the crime rate, school ratings, and nearby activities to ensure you’re making the best choice for your family. Even a simple chat with potential neighbors can reveal multitudes if you’re considering moving to a new city. Those looking for a new home should also remember that houses in secure locations with good schools are usually more expensive.
Keep in mind that the state of your neighborhood can affect the property value of every house on the block. Even your best efforts at home improvement can be negatively affected by those living around you. A decrease in the value of your home would run counterintuitive to your desired goal of building equity when you first made your purchase.
Living in a Townhome Community
At the outset, you can be assured that your neighbor’s homes will look as nice as your own since most townhome communities take proper care of each unit. If a uniform and tidy appearance in your neighborhood is a priority, renting a townhome might be a good choice for you. However, keep in mind that townhome communities typically do not let you paint your home or make any structural changes to the unit.
A townhome community can offer many amenities that single-family homes do not. For one, many townhomes are located in an urban area where single-family homes are unreasonably high-priced. By renting or buying a townhome, you can have the perks of being near a metropolitan area without the high financial costs. For example, Woodgate Townhomes is located near popular urban dining and shopping locations, as well as Lake Conroe, one of North Houston’s most popular recreational areas.
In addition, many townhomes offer amenities that are non-existent with a single-family home. Whereas homeowners and single family home renters are pressed to handle their own repairs, most townhome tenants enjoy amenities such as on-site maintenance and management, lawn mowing, and pest control services.
Single Family Home vs. Townhome: Which One is Right for You?
Source: Woodgate Townhomes
In the end, it is up to each family whether living in a townhome or a single-family home is the best option. Preparing a detailed assessment of your home needs, priorities, and financial status will help you decide where to live. Consider what amenities you and your family would enjoy, which location is best for everyone in the household, and what your future goals are when it comes to housing.
Though the idea of a purchase can feel exciting, buying a house is a long-term commitment that buyers should consider carefully. Duplex townhomes feel almost identical to single family living, offering a lot of the same benefits while also providing a lot of added bonuses, like ground maintenance, home upkeep, and more cost effective options.
If you’re planning to wait until the market is more stable, consider renting a townhome with Woodgate Townhomes. You’ll enjoy the best parts of homeownership--privacy, parking, great location--without the steep purchase price, long-term mortgage payments, and maintenance issues. Schedule a time to view our luxury units today and discover the joy of living in a beautiful, luxurious townhome community.
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