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| What to Purchase ? |
| > SINGLE FAMILY HOME (detached) |
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Historically, single-family homes have had the fastest appreciation over attached residences. In markets where they are available, detached homes should bring higher rent and occupancy. In addition, they typically have the largest square footage of the different types of residences. There are a lot of exception due to land values, available developable land and other factors. The maintenance, upkeep and running costs on a single-family home may be higher than townhomes and condos. |
| > TOWNHOME (home sharing a common wall with at least 1 unit) |
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Townhomes share some of the benefits of detached homes and condos. They typically include exterior maintenance within the homeownerís association (HOA) dues, which is a nice feature for a property where the owner does not live in close proximity to the property. They should have lower utilities because they share at least one common sidewall with another townhome |
| > CONDO |
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Low Rise - typically 3 stories or less
Mid Rise - usually 5 to 9 Stories
High Rise - typically 10 or more stories
Condos are ideal in areas where there is limited land or very expensive land. Historically they lacked the appreciation of the other categories unless they are close proximity to a landmark such as a beach, city center or entertainment center. They are very low maintenance but can have higher running costs depending on the efficiency of the condo association. They are ideal for a vacation property when combined with a large amenity package. |
| > CONDO/HOTEL |
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Condo/hotels typically offer a centralized onsite property manager. They are ideal when a large hotel chain is handling the management (e.g., Ritz Carlton, Westin, Four Seasons, etc.). However, they often restrict the amount of use by the owner so they can maximize the occupancy or meet local governmental requirements. In some cases, the financing is not as attractive as the other categories because lenders see this more as an investment than a 2nd home and require larger down payments and/or higher interest rates. This is basically an opportunity to own part of a hotel but your value may be subject to the quality of the management and the local demand for your community. |
| > HOTEL/CONDO |
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The only difference between this and a condo/hotel is that the property management is not restricted to one company. In some cases, the developer will structure the property management where it is in the ownerís best interest to use the preferred management company but it is not mandatory. This can help the buyers because it will make the financing more competitive with other types of residences. This category has more risk than the others because of their limited resale history to establish resale values. |
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