Condominiums and townhomes can be affordable options for people to invest in homeownership, even if they want to build a new construction house. Many high-quality homebuilders and community developers offer preconstruction (so they will be brand new) condos and townhomes, many in high-demand urban areas, so people from all walks of life can make their dream home a reality.
Why You Should Avoid Buying Into an Existing Set of Units
Existing condo and townhome units come with an existing set of problems for the new homeowner. Old condos and townhomes come with cramped layouts and dated features. Sometimes, they come with busted appliances, mold, and other major problems too.
If you decide to buy an already built condo or townhome, be prepared for remodeling, redecorating, and downsizing. Prepare to spend your days as a new homeowner removing old carpet, scraping off texture from popcorn ceilings, and repainting.
Living in an existing condo or townhome cost more than living in a customized, newly built unit. On top of remodeling and restyling costs, people who buy old condos or tonwhomes spend more per month on utility bills and repairs, inside the unit and in shared and exterior spaces.
Why Buy a New Condo or Townhome
When you buy into a brand new condo or townhome community, as with a new single-family community, you get the chance to choose which unit you want and to design your new abode around your life and personal style. Instead of buying an existing unit (with maybe not ideal views), and then spending the time and money necessary to remodel it, you will be able to move into a completely new, designed-just-for-you home. You might have to wait a few months for construction to be completed, but once you’re in, you’re done.
Buying a preconstruction condo or townhome is typically safer than buying a unit in an older building. Like new single family-homes, new condos and townhomes have to meet the most current — and typically, more rigid — building codes, which means higher quality materials and fixtures, better indoor air quality and greater energy efficiency.
In a brand new building you won’t have to worry about tearing out asbestos, dealing with mold or water damage, and you’ll have brand new appliances and HVAC systems. As with master planned home communities, many condo and townhome communities have plenty of luxury amenities. Buying into a new community gives you the chance to invest in a broader condo or townhome community and take advantage of high-end features designed to keep you active and engaged with your neighbors.
Condos and townhomes also initially cost much less than a single-family home in the same area, as condo owners don’t have to pay for all of the extra space of a McMansion and share maintenance costs with the community.
Who are Condo Developers and What Do They Do?
Developers of multifamily housing like condos or townhomes take a piece of land (typically in a prime urban area) and transform it into a viable condo building or townhome community. Developers prep the land for construction, handle sales and financing, and handle the building process.
When you decide to buy a preconstruction condo, you will work with the developer (or their sales representative) while going through the buying and financing process. Before signing any contracts, you should talk with the developer about the project’s budget, financing and legal status, as well as the expected construction schedule.
Sometimes developers work with third-party builders for the construction process. If this is the case, you should research the builder and learn why the developer chose to partner with them.
What Do Developers Not Do?
Condo and townhome developers don’t have anything to do with the day-to-day maintenance and management of their built communities. Developers hand over control of a community to homeowners’ associations (HOAs) and management companies after they finish construction.
Homeowners don’t contact their community developers for issues about issues with common areas or exteriors. The HOA handles all these mundane maintenance issues, as well as sometimes arbitrating issues between homeowners.
Even if a condo or townhome community needs major renovation after a natural disaster, the developers will not handle these repairs. The HOA, with input from homeowners, will find contractors to manage any major projects.
If you’ll all about the condo or townhome life, check out NewHomeSource.com to find condo and townhome builders near you.
After graduating in 2016 from The University of Texas with a degree in English, Sanda Brown became a content writer for the BDX with a focus on website copy and content marketing.
At the BDX, Sanda helps write and edit articles on NewHomeSource.com, writes website copy for builders, and manages a team of freelancers that work on additional content needs.