What Is the Best Type of Home to Buy? Pros and Cons

Single-family detached residences, condos, townhomes, and multi-family units… so many choices for homebuyers! Which option is best for you?

Single-Family Detached Home

Your traditional house is the dream of almost any homeowner. A nice little – or big – house with a yard and maybe a few trees is perfect for a couple or family starting out. Traditional home ownership means that:

Pros

• You own the house and the property it sits on
• It’s relatively easy to qualify for a traditional home loan 
• You’ll have access to the most programs and loan options
• Once the home is yours, you can decorate however you wish
• The neighbors won’t be right up on you

Cons

• Any repairs and maintenance are all on you once you buy the home
• If you love city life but can’t afford real estate close to town you might have to settle for the suburbs
• Smaller houses in good condition can be hard to find 

Condos

Living in a condo is a lot like living in an apartment except that your lease is never up! Condo owners like owning their home, and love not dealing with hassle:

Pros

• Things like lawn maintenance and roof repair are part of the benefits
• Insurance costs are usually lower for a condo compared to a house  
• You can have an onsite pool, gym, playground, or coffeeshop  

Cons

• The homeowners association (HOA) fees are usually very high for condos
• Bad condo management can definitely sour the experience
• Selling a condo can be tricky and take time  
• If the building is old, be prepared for a sudden hike in fees to cover repairs or renovations 

Townhomes

Want to land somewhere in the middle between a single family house and a condo? A townhouse/townhome could be perfect for you. 

Pros 

• You can feel close to your neighbors without sharing your ceiling or floor
• If you adore having a multilevel home on a small footprint, townhouse life is for you
• Even in expensive areas, a townhome can be affordable

Cons

• You may have to settle for a teeny tiny yard – if you get one at all
• Even though you own your entire property, you’ll still have HOA fees
• A townhome isn’t necessarily going to be cheaper than a house by the square footage

Multi-family Residences

If you have disposable income, can absorb the costs, and want to invest, try hacking your house payment with a multi-unit property.

Pros

• You can live in one unit and rent out the rest for extra cash
• You might be able to charge enough in rent to completely cover your mortgage  
• As long as you live on site, you pay residential property interest rates, not commercial  

Cons

• Being a landlord can be a challenge if not a downright pain
• Vacancies can leave you floundering if you can’t pay the mortgage on your own  
• Appreciation for a multi-family property is slower than for a single-family home

Make your own pros and cons list for each option, and then decide what kind of home is the best type for you. Then get to house hunting!