What is the difference between owning a condo and a house

Edited by. Suzanne De Vita. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Share this page.

Key Principles We value your trust. What to consider Cost: The cost of owning a house vs. Owners of single-family homes must insure their entire structure, from the foundation to the roof, as well as any detached buildings like a garage or shed. Maintenance: In a condo community, the HOA is responsible for exterior maintenance, while condo owners must maintain areas inside their unit like the HVAC, pest control and appliances.

A house owner is responsible for all that and more, including yard care and exterior maintenance. Here are top tips for avoiding pricey home repairs. Amenities: In a condo community, the cost of amenities like a pool, gym or business center is shared among all the residents, making them more affordable for each individual.

However, the owner of a house is solely responsible for the cost of installing similar perks on their property. Location: Condos tend to be located in densely populated city areas, so owners can be within walking distance to local restaurants, shops and cultural attractions.

Houses, on the other hand, sit on their own pieces of land, so they can be in less dense areas. HOA rules : When considering a condo vs. Most condo communities have a governing HOA that can dictate what kinds of pets residents can have, where they can park and whether they can sublet their units, for example.

While some single-family home neighborhoods have HOAs, they are typically less restrictive and allow for greater autonomy among homeowners. Selling: In general, it can be easier to sell a house than a condo. The HOA might also screen prospective buyers, which can limit your offers.

Who is a condo best for? Condo pros Affordability — Condos are typically less expensive than a house, so they can be ideal for first-time homebuyers with limited down payment savings or retirees wanting to scale back. Less maintenance — If you own a house, all of the maintenance of the property falls on you. More perks — Unlike a house, many condo communities come with amenities like a pool or security.

Condo cons Fees — Condo associations charge a monthly fee to cover upkeep and other expenses. A homeowner is completely responsible for all maintenance inside and outside the property, including care and upkeep of the yard and trees. You must also consider buying extra equipment and tools for maintenance when you purchase a house. Although any improvements you make will likely increase the home's resale value, they require an investment of time and money.

Another con is that utility bills are generally higher because houses have more space than condos. A big advantage to buying a house is that you have total control over the property to remodel or make changes without the consent of others. Another house advantage is that it allows for extra indoor and outdoor space, which is more conducive to accommodating families, children and pets.

Houses also feature more storage space in closets, attics or basements. Houses offer more privacy because neighbors don't live as close by as they do in condo buildings. Kelly Hansen has been writing since These fees cover the cost of taking care of communal complex spaces and pay for maintenance like landscaping and repairs. You should pay attention to these costs and factor them into your budget before calculating your investment's potential return. If you want to buy a condo or a home with a conventional mortgage, you will need a credit score of approximately If you plan to use an FHA loan for your condo purchase, your score needs to be at least Historically condos have appreciated or held their value.

In , the economic crisis did stall the condo market due to rising inventory in stock more people sold off their condos. Buyers were not as attracted to condos' shared amenities and close living quarters. In fact, in , the median sales price of condos was below single-family homes, as more buyers sought stand-alone houses with more room.

However, condos in desirable locations should continue to provide a good opportunity for investors. Lending Tree. Real Estate Investing. Purchasing A Home. Home Ownership. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.

I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Alternative Investments Real Estate Investing. Table of Contents Expand. What Is a Condominium? Searching for the Right Condo. Beyond the Condo Sales Contract. Condo vs.

Condos as Vacation Homes. The Downsides of Owning a Condo. Buying a Condo FAQs. The Bottom Line. Key Takeaways Condominiums come in many forms—townhouses, apartments, and even small homes within a larger development or neighborhood setting.

An affordable condominium is a popular choice for a vacation home in beach locations such as Florida, Bermuda, or Hawaii, and high-property value locations, like New York City and Los Angeles.

Before purchasing a condo, it is advisable to request and read all the rules of the condominium complex. Many condominiums offer amenities like swimming pools, clubhouses, tennis courts, and golf courses. In , the condo market took a hit.