Types of Housing

House, condominium, co-op or a townhouse? What you choose depends on your lifestyle and how much responsibility you want.

A house is the most common type of property. Typically free-standing, a house may be surrounded by a front yard and a backyard. A house owner takes responsibility for the entire house and its grounds. That includes all of the maintenance, from cutting the lawn to getting a new roof. That can mean a lot of time and money, but it also means you do not have to consult anyone about changes you want to make to the house.

Depending on the neighborhood and other factors, a house maintains its market value well. Houses offer the greatest amount of ownership and control, but are the most expensive option.

A condominium is usually a less expensive housing option. As a condominium owner, you own your own unit, but share in the ownership of the common areas. Condominium units are clustered in condo complexes, which can be anywhere from three units to several hundred. All of the units in one complex share common facilities and the cost of maintaining them.

Maintenance in a condominium complex is handled by the condominium association. The board oversees all of the common expenses, from cutting the grass to (in some complexes) cable TV services. Each condo owner pays monthly dues for building upkeep, and must discuss any exterior changes with the condominium board of directors.

One main advantage to condo living is ease. You do not have to spend your Sunday mornings mowing the lawn, and major expenses, such as new plumbing or exterior painting, are handled by the condo association. However, if you want to make a major change to your condominium, you will need to get approval from the condo board.

A second advantage is that condominiums are often less expensive than houses. However, they are also slower to rise in value and the first to lose value in a bad real estate market. In addition, a condominium association has the right to refuse a buyer if you decide to sell your unit.

Shareholders in a cooperative (or co-op for short) own shares in a corporation. The corporation holds title to the complex, and the shareholder has the right to live in a particular unit.

Cooperatives are more common in big cities, where there is a shortage of housing.

Because cooperative buildings are owned by a corporation, and the people who live in it are shareholders, they tend to be the most selective of all of the housing options. By living in a cooperative, you are agreeing to live by the rules of the corporation -- these cover everything from maintenance of the building to loud parties. The selectivity, however, can be an advantage.

Townhouses are individually owned, but are physically attached to other units. They are usually two or three stories, and may have a small yard attached.

Townhouses are usually less expensive than houses, but have less privacy. Because one or more walls are shared, noise can seep in from neighbors. When looking at townhomes, check the noise level by visiting the place when neighbors are home and active.

A townhouse can follow the condominium or co-op management models.