Single Family or townhome

**riverwed070707** · 08-05-2013, 10:37 AM

Originally posted by nilsandiego View Post

We have been looking for homes since last few months and finally found 2 homes which we like in different townships (both have good school systems ).

Now one township has less taxes and we found a townhome which we could afford and in another township we found single family home with higher taxes.

In both cases totla monthly expense in terms of Loan+Taxes+HOA(In case of townhome) is same.

Knowing this facts, should one buy single family or Townhome.

Personally i would like to buy Single Family home and my reason is instead of paying $300+ every month in HOA, i would pay as taxes/interest which are tax deductible and plus it is single family home. Wife has counter argument of place being little bit further away from our work places ( 14-15 miles instead of 7-8 miles for her) and also she is afraid that single family would come with extra work in yard/snow shoveling .

What should be right choice?

Below is more detail about finances of home.

Here are the scenarion.

Town home in city a = $400K (Price) + 6500 (taxes) + $329/month HOA.

Assuming 4.25% 30 year fixed rate, it comes out to be approx $2436 monthly

Singlae family in city B = $425K (Price) + 8500(taxes)

Assuming 4.25% 30 year fixed rate, it comes out to be approx $2381 monthly.

Are you in a HCOL area? How do you feel about shoveling/mowing/etc? Yes those are something that go with owning a home but it wouldn't deter me from purchasing one. Personally I prefer the extra privacy, having a garage, not having to carry my groceries up several flights of stairs, and having a yard for my pets. Its a super personal decision and needs to align with your goals and lifestyle. Being closer to work is definitely a plus -- is there a garage for your cars or will you have access to public transit? Do you plan to have kids soon, and if so, have you compared school districts? Another thing to consider is that townhomes can be harder to sell than a SFH. $330/mo for HOA is a lot -- what all does that include and is it saving you additional money that the SFH would not?

How about the cost of the homes? Is an extra $25k a budget buster for you? What is the range you're looking in and what percentage of your income is the payment?

Too little info to give any good advice.

**97guns** · 08-05-2013, 11:45 AM

the HOA can be raised anytime

**nilsandiego** · 08-05-2013, 11:58 AM

Originally posted by riverwed070707 View Post

Are you in a HCOL area? How do you feel about shoveling/mowing/etc? Yes those are something that go with owning a home but it wouldn't deter me from purchasing one. Personally I prefer the extra privacy, having a garage, not having to carry my groceries up several flights of stairs, and having a yard for my pets. Its a super personal decision and needs to align with your goals and lifestyle. Being closer to work is definitely a plus -- is there a garage for your cars or will you have access to public transit? Do you plan to have kids soon, and if so, have you compared school districts? Another thing to consider is that townhomes can be harder to sell than a SFH. $330/mo for HOA is a lot -- what all does that include and is it saving you additional money that the SFH would not?

How about the cost of the homes? Is an extra $25k a budget buster for you? What is the range you're looking in and what percentage of your income is the payment?

Too little info to give any good advice.

To answer few of things you asked.

Myself and wife both are working and currently we put aside 2K in cash savings after maxing out our 401K and contributing 15% of my salary to Employee stock purchase plan. I feel even after buying either of this home , we may put 1.5K cash aside instead of 2K . So , i am not too much worried about monthly financial and 25K extra for SFH won't be the reason if we decide to go for townhome.

We have 4 year old and both homes are located in 2 different school districts which are suppose to be better ones around so not much to choose there too.

I believe $329 HOA covers snow shoveling/outside maintenance + exterior of the townhome (roof/sides).

**LivingAlmostLarge** · 08-11-2013, 07:40 PM

SFH without a doubt. The horror stories I can tell you from living in our townhouse.

**dawnwes** · 08-11-2013, 07:51 PM

I say single family home as well, BUT, I am wondering if you can find a home that would fit within your budget on a 15 year loan? The interest will be lower and the amount you pay in interest will be vastly different.

We currently have a 2.65% fixed rate loan on a 15 year.

Dawn

Single Family or townhome