I spent three months comparing townhouses vs condos—talking to owners, real estate agents, and analyzing costs. The difference isn't just square footage. It's $60K-$80K in equity over 15 years, surprise $20K HOA assessments, and resale challenges most buyers never see coming. Here's everything you need to know before choosing. 🔥 WHAT'S COVERED: ✅ Ownership differences: What you actually own (and pay for) ✅ Real monthly costs: Townhouse vs condo breakdown with hidden fees ✅ HOA reality: Why condos get hit with $10K-$40K surprise assessments ✅ Resale value: Townhouses build $60K-$80K more equity over 15 years ✅ Who should buy which: Clear decision framework for your situation ✅ Red flags to avoid: HOA reserve fund crisis, rental bans, FHA restrictions TOWNHOUSE vs CONDO - KEY DIFFERENCES: TOWNHOUSE:
You own: Interior, exterior, roof, yard, foundation Monthly HOA: $200-$400 (lower) Your responsibility: Roof replacement ($12K), exterior maintenance More control: Paint, landscaping, modifications (with approval) Appreciation: 3-5% annually (closer to single-family homes) Resale: Easier (broader buyer pool, feels like house)
CONDO:
You own: Interior only ("airspace") Monthly HOA: $350-$600 (higher, covers more) HOA responsibility: Roof, exterior, building structure Less control: Can't change exterior, need approval for renovations Appreciation: 2-4% annually (more volatile) Resale: Harder (smaller pool, FHA/VA restrictions, HOA reputation matters)
REAL COST COMPARISON (10-Year Total): Townhouse ($250K purchase):
Monthly: $2,643-$2,843 Roof/exterior over 10 years: $8,000 Total 10-year cost: $325K-$349K Predictable, your responsibility
Condo ($250K purchase):
Monthly: $2,443-$2,693 (looks cheaper) Special assessments: $15K-$40K (surprise costs) Total 10-year cost: $308K-$363K Unpredictable, surprise bills
THE SPECIAL ASSESSMENT NIGHTMARE: When condo HOA lacks funds for repairs, ALL owners pay:
Roof replacement: $15,000 per unit Elevator repair: $8,000 per unit Parking garage: $12,000 per unit Plumbing overhaul: $10,000 per unit
Real story: Owner hit with $22K assessment 2 years after buying. No warning. 15-YEAR EQUITY COMPARISON: Townhouse ($250K):
Year 15 value: $390,000 (3% appreciation) Minus assessments: -$20,000 Equity built: $140,000 $60K less than townhouse
WHO SHOULD BUY TOWNHOUSE: ✅ Families with kids (yard, space, safety) ✅ Pet owners (especially dogs) ✅ Long-term investors (7+ years, building equity) ✅ Want control over property ✅ Value predictable costs WHO SHOULD BUY CONDO: ✅ Young professionals/couples (minimal maintenance) ✅ Frequent travelers (lock-and-leave) ✅ Snowbirds (seasonal living) ✅ Urban living priority (walkability, amenities) ✅ Downsizers (less space, simpler) CRITICAL RED FLAGS - AVOID IF: Condo Red Flags:
Reserve fund under 50% funded (assessment coming) Pending special assessments Building not FHA/VA approved (eliminates 30-40% of buyers) Rental restrictions (kills investor market) Visible deferred maintenance HOA lawsuit history
Townhouse Red Flags:
Extremely aggressive HOA Maintenance costs way above market No yard included Foundation issues in complex
DUE DILIGENCE CHECKLIST (BOTH):
Request 3 years HOA financials Check reserve fund status (70%+ funded ideal) Review 6 months HOA meeting minutes Talk to 3+ current owners Verify rental policies Check lawsuit history Have lawyer review HOA docs ($500-$1,000, saves $50K)
RESOURCES:
HOA checklist template Reserve fund calculator First-time buyer guide
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DISCLAIMER: This video presents general information about townhouses and condos based on research and industry data current as of January 2025. Real estate markets, costs, HOA fees, and appreciation rates vary significantly by location. Cost comparisons are estimates for illustration and should not be considered exact figures for any specific property. Always consult licensed real estate professionals, attorneys, and financial advisors before purchasing property. HOA rules, fees, and reserve fund requirements differ by association. Special assessment risks and frequency vary. The creator is not a real estate agent, attorney, or financial advisor. This content is for educational purposes only and does not constitute professional real estate, legal, or financial advice. Individual results will vary based on location, market conditions, specific properties, and personal circumstances. Always conduct thorough due diligence including HOA document review and professional inspections before purchasing.
