What Type of Home is Right for Me?

There are essentially 5 types of homes whether new construction (never been lived in) or existing: Detached Single Family Residence, Multi-family (Multi-unit, Duplex, Triplex) Residence, Condo (Condominium), Co-op and Townhouse. Below are the pros and cons of each type of housing.

  1. Detached Single Family Home
    Free standing building on a parcel of land that does not share walls with any other building and designed for a single family to occupy Click Here for Single Family Example

    2. PROS
    • Separated living space allows more privacy to home owner
    • Generally appreciates more than a condo, co-op or town house
    • Front and back yard can be used exclusively by homeowner however he or she wishes within city's guidelines (i.e. cannot build another house in the backyard)

    CONS
    • All maintenance and repairs are the responsibility of the owner
    • Generally more expensive than condos, co-ops or townhouses due to the value of the building and the land in which the building sits on


  2. Multi-Family / Multi-Unit Home
    Free standing building with more than 1 unit (but usually no more than 4, otherwise building is considered an apartment building) entirely owned by 1 party on a parcel of land that does not share walls with any other building and designed for more than a single family to occupy Click Here for Multi-family Example

    3. PROS
    • Generally appreciates more than a condo, co-op or townhouse
    • Front and back yard available for use, although shared among building residents
    • Possibility to convert each unit into a condo (if city permits) and sold off separately
    • Other unit(s) can be rented out to lower mortgage expenses or possibly create rental profits

    CONS
    • Generally more expensive than condos, co-ops, townhouses or single family residences
    • Less privacy and noise from other unit(s) can sometimes be heard
    • All maintenance and repairs are the responsibility of the owner unless a property management company is hired


  3. Townhouse / Townhome
    Practically a single family house but is attached to another town house either on one or both sides Click Here for Townhome Example

    4. PROS
    • Similar living space to a single family house but generally more affordable
    • Townhouse are usually multi-story, so there are no neighbors above or below
    • If the townhouse does not have any land ownership or its own drive way, maintenance is easier and less costly

    CONS
    • Usually no personal yard space or very limited yard space
    • Less privacy and noise from side neighbors can sometimes be heard
    • Homeowners Association fees add additional cost to ownership. Fees usually cover master insurance for the building and maintenance fees


  4. Condo / Condominium
    One of multiple privately owned units in a single building Click Here for Condo Example

    5. PROS
    • Often more affordable than a single or multi-family house unless condo is a luxury condo in which the cost can be greater than a house
    • Owner has deed to his/her individual unit and can rent or sell the unit to whomever without any approvals unless stated in the condominium association's bylaws / policies
    • Easier to maintain and generally lower cost of individual maintenance as condo association takes care of major, shared property management issues such as the roof, landscaping, driveways, etc. Always a good idea to check the background of the property management company managing the condo association

    CONS
    • Usually no personal yard space to be used exclusively by an owner
    • Less privacy and noise from neighbors can sometimes be heard
    • Generally slower appreciation when compared to houses
    • Condo fees add additional cost to ownership. Fees usually cover master insurance for the building, maintenance fees and sometimes heat/hot water


  5. Co-op / Co-operative
    Owners have an ownership percentage of the company which owns the building; more common in New York City Click Here for Co-op Example

    6. PROS
    • Generally lower cost of individual maintenance as co-op association takes care of major, shared property management issues such as the roof, landscaping, driveways, etc. Always a good idea to check the background of the property management company managing the co-op association

    CONS
    • Usually no personal yard space to be used exclusively by an owner
    • Less privacy and noise from neighbors can sometimes be heard
    • Co-op fees add additional cost to ownership. Fees usually cover master insurance for the building, maintenance fees and sometimes heat/hot water
    • Selling a co-op may be difficult as many home buyers may find the process of obtaining approval from the board of directors in the co-op too troublesome
    • Rules with renting and selling can be very strict in which an owner must obtain approval from the board of directors and/or majority of owners, to allow his/her unit to be rented out or sold to another party
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