Called “common-interest housing” condos, co-ops, flats, townhomes, and apartments have different meanings to different buyers and even have different colloquial meanings than the official real estate industry meanings. Below you'll find a breakdown of the differences between these housing types along with the advantages and disadvantages of each.
What is “Common Interest Housing”?
Before going too deep, it is essential to understand just what "common-interest housing" actually is. This type of real estate involves a combination of individually owned areas and shared areas in a single property. Shared areas often include pools, parking, and clubhouses, but it can also mean shared landscaping, exteriors, fences and roofs depending on the type of property. A property manager, homeowners association (HOA) or a combination of the two maintains common areas.
Condos and Co-Ops
Condominiums, more commonly called condos, are single home units in a shared property. A homeowner separately owns each unit. The shared property types range from high rise buildings, also called apartments or flats, to conjoined homes townhouse-style. A single family home in a planned community or a mobile home in a community or park can also be condos. Instead of a specific type of home style, "condominium" is a legal term in the United States that refers to the ownership status, so homes of any form, connected or not, can qualify if they are part of a shared property community.
A co-op, short for cooperative housing development, is another thing entirely. While similarly structured with private and shared areas, co-op owners purchase and own shares in the real estate development instead of their specific portion of the property. All the shareholders have a voice in the real estate corporation, and their investment includes the right to live in a unit. Usually, the monthly expenses of the real estate corporation split between shareholders, so this can be an extra expense you need to plan for. Similarly to condominium, "co-op" is a legal term that refers to the ownership style of the building or neighborhood instead of the building's structure. Depending on your area, you can find co-ops in apartment-style buildings, single family home neighborhoods and townhome style shared wall housing.
Flats, Townhomes, and Apartments
You’ve noticed the words flat, apartment and townhome in the descriptions of condos and co-ops above. This is because apartments, flats, and townhomes don't have such specific legal meanings. The term "apartment" most often refers to rental units, usually in a single building or set of structures. These are generally not owned, but instead leased or rented from the owner of the entire building or complex. However, since apartments are just a building style with several units that have shared walkways and entryways, apartments can be rentals, condos or co-ops depending on the situation.
Townhomes refer to a specific building style where the house connects to another house on at least one side. Just like apartments, townhomes could be rentals, co-ops, condos or single-family homes. The true townhome design requires both homes to have separate side-walls even though they touch. However, a lot of condo, co-op and apartment designs look like townhomes without actually meeting the construction requirements. Do this by styling the front or backs of each unit differently, even if constructed as part of a single building.
Are you thinking of buying a condominium or co-op? Talk to your real estate agent about what's available in your area!
Are you planning to move away from the bustle and frenzy of a major commercial city and want to settle in some peaceful, serene environment? If you answered yes, purchasing a home in suburban neighborhoods is probably on your to-do list already.
Buying a home is a substantial investment; therefore, it requires proper planning and careful considerations before jumping into it so as not to incur significant losses. There are many factors to consider before buying a home, especially in the suburbs, and highlighted below are some of the most crucial to be aware of:
Parking space
One thing that most homebuyers want is enough space for their vehicles. In some suburban areas, there is ample space for street parking. However, in other places, the reverse is the case. If the home doesn't have a parking space or garage, you should look for street parking at various times of the day. The presence of none indicates that you should look for hidden parking. Some neighborhoods are served by rail service too but parking a car near the station to ease your commute might pose a challenge. Avoid the mistake of assuming you will always find parking.
Flooding risk
Some suburban areas are at risk of flooding. This risk is because there may be natural water sources that rise quickly when it rains heavily. Since the safety of both your family and your soon to be acquired property is a priority, it is essential to check for flooding risks before buying the home.
Need for renovation
Suburbs usually have a lot of older buildings and construction, which brings with it the need to renovate some homes when you purchase. If you do not have home renovations in your budget, find yourself a good home without the need for many improvements. However, if you do not mind making improvements, there is no harm in spending on your comfort and style choices.
Accessibility
Schools, shopping facilities, recreational centers, and other essential places may be a considerable distance from your home. Buying a home where these facilities are not readily available will not only isolate you, but it will incur more costs ongoing. Spend time researching the entire community before making such a move so that you know where to find services and shopping.
The condition of the structure and yard
You probably have a kind of structure in mind before going through a real estate site with home listings, which will help to narrow your search and ensure you get what you want. Many homebuyers choose the suburbs because of the tranquility and greenery — some want to tend to their gardens. If a suburban landscape is on your list, you should make sure the yard has enough space for a garden and a lawn you can craft to reflect your taste.
Discuss all your property needs—and desires—with your real estate agent to know what is on the market that meets your requirements.
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