Townhomes...?

TechAPhi · #1 04-13-2002, 02:45 AM

Have any of you out there in GC land ever bought a townhome? Would you do it again? In retrospect what were the advantages/disadvantages versus renting an apartment. Did you have trouble selling it when it was time to move?

If any of you have experience with townhomes, I would appreciate your insight. Thanks much!

Jen

aggieAXO · #2 04-13-2002, 03:38 AM

I bought a townhome when I lived in College Station when I was in college-real estate is cheap there and the mortgage was cheaper than renting, plus when I sold it I made a 10,000$ profit so I had a down payment on my condo I now live in.

I have only rented for 3 months in my life. My mother is a huge advocate for buying. I have to agree with her. The condo I bought 5 years ago is now worth almost twice as much and I will make a nice profit when I sell it. When you rent you throw your money away, when you buy you gain equity. I would not buy though unless you are going to stay in a place for 2 years or more or unless you plan on renting it out. My friend is about to sell her house she bought 1.5 years ago but cannot until she has owned it for 2 years b/c she will have to pay a capital gains tax which apparently will eat deeply into her profit (not sure if this applies only to Texas). She will make a pretty good profit and has only owned the house for a short time. Real estate is a good investment IMO (if not the best investment) you can make.

When you buy it feels like you are truly home. I can paint my walls, tile my floors and do just about anything to the inside. I cannot touch the outside b/c the condo association has to give permission to change anything. Townhomes are different-no association, so you can pretty much do whatever you want to the outside-at least that is what I understand tobe the difference between a condo and townhome.

Disadvantages-when something breaks-you are responsible for paying for the repair, no one to call so make sure you get your place inspected before you buy and always ask how old the air conditioner, hot water heater, stove, refrigerator (if it conveys), etc.. is and if they are really old plan on a budget to replace them or get a homshield policy.

Let me know if you have any more questions.

Lisa Fishman · #3 04-13-2002, 09:35 AM

I bought a townhouse/ condominium 2 years ago. I love it. But as AggieAXO said, if something inside breaks, you pay to fix it. No more maintnance guy from the apt. complex. Being in a condo association is good though cause they take care of everything on the outside (ie. roof, paint outside, grounds, etc....) Not all townhouses have condo assoc. though. You may be on your own for the outside as well. I rarely if ever hear my neighbors, unlike the apt. complex I used to live in. Another pro is the value of the condo/ townhouse may go up in value and you can sell it for more than you bought it for.
Cons: Once you buy and want to move it's hard cause you will to sell it. This could take a while and hold your money up to buy a new house. This is unlike an apt. lease, where you can terminate the lease or wait till the end of the lease to move. Buying is MUCH more permanant. Also, many condos/ tounhouses have an association fee each month. This can be as high as $200 (or higher) or as low as $25. These fees pay for all outside elements of your home. NOT all townhouses have assoc. where outside elements are paid for. Every townhouse complex is different. I've seen townhouses where things outside are NOT paid for by the assoc.. And you have to pay for things on the outside too.
Can you tell I'm on the Board of Directors of my Condo/ townhouse Assoc.????!!!! Lisa

TechAPhi · #4 04-13-2002, 02:17 PM

Ladies: This info was EXTREMELY helpful. Thank you for taking the time to reply. I appreciate it!

If anyone else has some insight they would like to share, I would be more than pleased to hear it.

Hootie · #5 04-14-2002, 12:25 AM

Will and I live in a townhome...even though he calls it an apartment. We have three stories. It's nice because we don't have to worry about noisy neighbors above us or below. The community we live in is nice. I'm glad we're only renting though because that way in time, when we need more room for the kids, we'll be able to buy a home or something with more rooms.
The only thing I dislike about our town home is how many flights of stairs there are. I can't IMAGINE how terrible it's going to be when we move out...carrying all the stuff down three flights of stairs

Anyways, that's all the advice I can give. I suppose I'm a huge advocate of renting...and of the townhome because of past issues with noisy neighbors.
Good Luck!

Hootie

aggieAXO · #6 04-14-2002, 02:03 AM

Oh yes I forgot to mention association dues-this is very important to know about b/c it will obviously add to your monthly mortgage payment. Also, if there is a due fee ask the previous owner about how much it goes up every year, mine only goes up 4$-6$ per year but my mothers went up almost 100$ this year

. That can be a lot of money to budget in especially if were not expecting it. Also ask what it includes-mine includes, water, garbage and maintnance of the grounds.

aggieAXO · #7 04-14-2002, 07:15 AM

Another thread just made me think of another advantage that renting doesn't give you-your house interest can be tax deductible. I always get a nice sum of money every year from the government at tax time and some of this is due to my house interest (I actually look forward to April 15th!). You can't deduct rent-once you pay it, it is gone-bye bye.

Tom Earp · #8 04-14-2002, 10:36 AM

In the words of Will Rogers, buy land, they dont make it anymore!

This should go for any type of property!

It always in most cases goes up, not down!

TechAPhi · #9 04-18-2002, 04:40 AM

All of this information has been very helpful. It has helped me feel more secure in our decision to buy a townhome. My parents are coming in town this weekend (we have narrowed it to three places). I hope to be able to report after the weekend that we have picked one.

Thanks everyone for the words of wisdom.

Jen