Monthly Archives: June 2017

Things to Consider When Buying a Townhome

If you’re buying a home but are not interested in keeping up with maintenance, you’re probably looking at buying a condo or townhouse. And while condos can feel very much like living in an apartment, a townhouse gives you a space of your own. While townhomes typically do share a wall with another home (or homes) in the development, buying a townhouse is also buying the little plot of land it sits on, which means getting an outdoor space you’re not likely to find in a condo.

You won’t find townhomes offering as much space as single family detached homes, but by offering more space than a typical condo they can have a lot of appeal for families—or anyone who needs more room than an apartment or condo, without the hassles of owning a single-family home.

But a townhouse isn’t the perfect solution for everyone. Let’s walk through what you should consider before deciding on a townhouse.

You’ll have to deal with a homeowner’s association

If you buy a single-family detached home, the repair and maintenance of it will be on you—but for townhomes, much of the repair and maintenance will be handled by an HOA. Though these services are not free, you’ll pay monthly dues in addition to your mortgage. An HOA will help you avoid unexpected costs (like the need to fix a damaged roof) and they’ll save you time on maintenance tasks by managing the yard and even shoveling the snow. Though this can increase your monthly expenses, it may also be a good way to make your monthly expenses more predictable, since surprise homeownership costs will be few and far between.

If low maintenance homeownership appeals to you, a townhouse could be an ideal fit. However, you should still take a close look at the HOA and what it offers you, because the precise repairs and maintenance they’ll do will vary from association to association.

Still, that association can come with snags if you want to customize your house. For example, you may not be allowed to change the exterior colors or plant whatever you’d like in your front yard. If that’s important to you, check the HOA’s rules (CC&Rs) to see what they allow. If they won’t let you use the property to your liking, you might consider a single family detached home instead.

You may be able to find a townhouse with better amenities

Though what you’ll find in your area will vary, because more townhomes can be built in a smaller space than single family homes, you’re more likely to find them in urban areas—possibly locations where it’s hard or prohibitively expensive to buy a single-family home. For this same reason, it can also be easier to find newly constructed townhomes, which can make it easier to find modern, updated amenities that you might not come by in an older single-family home.

In addition to these extras, buying a townhouse also means you’re buying into a community, and most such communities will also have shared amenities, like a gym, pool, tennis court, or laundry room. Different developments will offer different perks, so if there’s something in particular you have your heart set on, investigate the development to make sure it has just what you want.

It may cost less up-front

Because you’re sharing your home’s walls and foundation with your neighbors, construction costs for a townhouse are often lower than construction costs for a single-family home—which means you’ll pay less to buy one. Even considering the HOA fees (which you should carefully weigh against maintenance and repair costs if you’re trying to decide whether to buy a townhouse or a single-family home), you may be able to get more home for less money by buying a townhouse.

You’ll share a wall with a neighbor

However, there’s a downside to that lower cost—and it’s the fact that you share one or more walls with your neighbors and don’t have a lot of space to get some distance from your fellow community members. Because of this, townhomes can be nosier and offer less privacy than a detached home (though they’ll be quiet to those used to living in a condo or apartment).

In the end, how loud it is really comes down to your neighbors and your own tolerance for living in (relatively) close quarters.

Reprinted with permission from PenFed Credit Union Blog. ©2017. All rights reserved.
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PenFed Foundaton Helps Veteran in Need

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PenFed Foundation and Humble Design Help a Veteran In Need

Humble Design and PenFed Foundation recently teamed up to furnish a home for a family in need. “No American—particularly one who has served in uniform—should have to go without a place to call home,” said PenFed Foundation President and CEO James Schenck. “There are plenty of organizations such as Humble Design that want to help, and PenFed Foundation is playing a key role by bringing them together to ensure more veterans are able to secure their finances and find safe places to live.”

Click the image above, or watch the video here:

Reprinted with permission from The PenFed Foundation. ©2017. All rights reserved.

Market News: Home Prices Rise in First Quarter

Market News: Home Prices Rose in Q1

Home prices rose 1.4 percent in the first quarter of 2017, according to the Federal Housing Finance Agency’s (FHFA) House Price Index (HPI). The HPI year-over-year— based on prices for homes with Fannie Mae- and Freddie Mac-backed mortgages— was up 6.0 percent.

“The steep, multi-year rise in U.S. home prices continued in the first quarter,” said Andrew Leventis, deputy chief economist for the FHFA, in a statement. “Mortgage rates during the quarter remained slightly elevated relative to most of last year, but demand for homes remained very strong. With housing inventories still languishing at extremely low levels, the strong demand led to another exceptionally large quarterly price increase.”

Per the Index, quarterly home price changes ranged from 1.0 percent in the Middle Atlantic Census division to 2.0 percent in the Pacific Census division.

Reprinted with permission from RISMedia. ©2017. All rights reserved.