Re: Single Family Home vs. a Townhome - Posted by GL - ON
Posted by GL - ON on July 15, 2003 at 23:19:29:
A townhouse rents for almost as much as a house but is a lot cheaper to buy. This means that when a rental house has negative cash flow a townhouse will break even or have positive cash flow.
But watch out for condo fees. Find out how much they are and how good the management is. If the fees are high but the management is poor, don’t buy.
The condo fees cover the maintainance of the outside of your condo, grass cutting and even roof repairs and painting. So there is less managing to a condo.
On a percentage basis they both go up together with inflation.
If you are thinking of living in it yourself and not renting it out then it’s a matter of picking one you like and can afford, either house or townhouse will do equally well.