A condo is an abbreviation for condominium which is a housing unit where the owner reserves exclusive rights of the interior space while the external land is co- owned together with other owners in the complex. A single family unit is where the owner of the house is also the owner of the land in which the home is located. A condominium is usually attached to other unit s by a common wall separating the units while a single family unit is detached and independent.
The Main Differences
• If you are buying a single family unit as an owner you have the freedom to alter the design to suit your taste and preference, but if you are buying a Condo you need to abide by the condo association rules and regulations.
• Condo documents are usually long and complex as compared to that of a single family unit, however, all documents must be filed with the local authorities normally with the help of a real estate professional.
• Buying a condo means you become a member of the Condominium Association. This means you are required to pay membership fee in order to run the association as well as other costs like insurance and routine maintenance on the grounds, etc.
• Condos provide less maintenance (landscaping, grounds, etc), but still maintaining an ownership share, while the owner of a single family unit takes care of his or her repairs and routine maintenance.
• The value of a condo does not appreciate the way the single family units do, but that also depends on the location.
What You Need To Know
• You should solicit a real estate professional before purchasing either a single family unit or a condo to review your options.
• Single family homes are normally a little more expensive if comparable in space because of the land aspect.
• If you are buying a condo or a single family unit as an investment you have to look at your rate of return on both options with your CPA or financial liaison.
• You need to understand what the monthly condo fees are and deal with the rules and regulations of the HOA (Home Owners Association), condo committee and the bylaws.