In this business, we often run across people who use the words condo and townhouse interchangeably. Well, that would be incorrect. Basically, a condo is the interior space of a housing unit that may also include a porch, while a townhouse includes exterior surfaces and the land the dwelling is built on.
When purchasing a condo or a townhouse, you also become part of a group called a homeowner’s association, or HOA in its abbreviated form. The HOA is made up of all individuals who own units within a specific development. An elected, executive board comprised of owners hold regular meetings to approve annual budgets for the care and use of the common elements of the association as well as the formulation and implementation of policies affecting the association such as non-owner occupied use dwelling units, pet policy and other matters.
Typically, there is a cost to being part of an HOA. A monthly fee covers items such as insurance, landscaping, snow removal, water and sewer fees, taxes and utilities, and upkeep of common areas such as pools, fitness centers, etc. Some of the money is also invested for future projects such as roof repairs, parking lot paving and more, when the time comes.
Occasionally, individuals in such lifestyle situations may also be required to contribute to a special assessment. Let’s say there is not enough money in the HOA reserve to cover the cost of a major unexpected repair or upgrade. This additional fee, usually payable over a set period of time, will generate the money needed to cover the expense.
While some may frown upon the added expenses of an HOA, let’s look at the tradeoff. Less maintenance means more free time to do the things you really like to do! If you do not enjoy cutting the lawn, maintaining the landscaping, watering the grass, planting flowers and shoveling snow, then you may want to consider a living situation like this where the outdoor workload is managed.
Is owning a condo or townhouse right for you? You’re the only one that can answer that question, but it helps weighing the positives against the negative before making your final decision.