Whenever you buy real estate you need to know about the key differences between various property types. One of the most common points of confusion is the difference between townhomes and apartments. Some people believe theyâ€™re the same, but this is far from the case.
Here are the key differences between townhomes and apartments.
Whatâ€™s the Key Difference?
The main difference between the two is that an apartment is a small self-contained home within a larger structure. Sometimes people own entire apartment buildings, but most of the time you only own a section of the building. Apartments are also typically smaller than townhomes.
Townhomes are long chains of houses and are typically more expensive than apartments. These homes give you more space and the majority of townhomes in the US are older, so they tend to come with more character than a newer apartment block.
They Present Very Different Investment Prospects
Anyone looking to invest in property will have to decide whether an apartment or a townhome is best for them. In Texas, the majority of real estate investors choose to invest in high-quality, clean, and modern apartments. With low property prices in the state, Bee Cave townhomes allows them to make a small investment in their futures.
Apartments are easier to maintain and the owner of the building is responsible for any issues that come up outside your apartment (most of the time).
Townhomes are usually older, and may even be historical, which may offer more character but come with bigger problems. Maintenance bills are higher and many states will hit you hard with higher property taxes. The property taxes on apartments are much lower.
Real estate investors who donâ€™t want to spend a lot of time and effort on their property should always opt for an apartment.
But Beware that Town Homes Can Differ
Remember that townhomes may also be segregated into individual condominiums. In the bigger townhomes, you may only be buying part of that town home. This can allow you to get a similar experience to an apartment, and you may even get more space. But you must be able to handle communal living.
What Offers the Best Return?
You may think that townhomes would offer the better return, but this is usually not the case. With higher property taxes and bigger maintenance bills, townhomes donâ€™t offer the huge returns you might think. Apartments offer less work and less regular maintenance expenditure, thus apartments may offer the best return in the majority of cases.
What Do Americans Desire?
Demand is always important for anyone whoâ€™s looking to make a real estate investment. Thereâ€™s no doubt that townhomes have a certain charm to them, but most Americans are practical people. They would much rather have an apartment in the center of the city close to their jobs than an elegant townhouse that requires them to travel an hour per day to get to work.
Last Word â€“ The Big Difference
The big difference between these two property types is the style. Someone with a big family may prefer a townhouse, but a single person would much rather choose an apartment. You need to decide which section of the market you want to target.
Do you know the differences between a townhome and an apartment?
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