If you are a first-time home buyer, what is the best property type to purchase? There are several kinds of properties, and it can be hard to determine which is the best bet for you. Below, we outline the main features of each property type, as well as their important considerations. Here’s what you need to know!
Detached house
Detached houses are the most common property type. These homes can be found in rural and urban areas, so they are very widespread. A detached house is a standalone structure that serves as one home, unconnected to any other property. Both the home and the surrounding property belong to the homeowner. This is what most people automatically picture when they think about a house.
Detached houses can vary in size, price, and yard area. Some houses sit on giant properties, while others simply have a small backyard and front driveway. This property type has the most variety. In terms of costs, these properties are often the most expensive to own, due to their size and the costs of home maintenance and repairs.
Duplex, triplex, or townhome
These property types are all very similar, with just minor differences. A duplex is a multi-family home that has two units in the same building. These two units always share a common wall, but the floor plan can vary. A triplex is the same thing, but with three connected properties. Townhomes just take this one step further as they can be part of a whole row of connected homes.
These types of homes are often found in newer, developing neighbourhoods and cities. They are a more modern property type designed to house more people in growing areas. Many residential construction projects right now are building duplexes, triplexes, and condos to fit more residents in places where detached houses will not comfortably stand.
In terms of size and cost, these properties usually fall a bit below detached houses. They are often great for couples and small families who may not require a full-size yard or several bedrooms. Given their smaller size, they usually do not cost as much to maintain or purchase.
Condo or apartment
Finally, condos and apartments are the smallest property type. These are homes within a larger building that hosts multiple units. Condos are mostly seen in larger urban areas and downtown cores where there is not enough space for detached houses or townhomes. They are best suited for individuals or couples, given their small size. These homes do not have individual yards attached, which can either be a pro or con, depending on your preferences. While many condo owners do not have to pay for utilities, they do have to pay for condo fees that cover maintenance and repairs for the building.
Which property type suits you?
Deciding on the best property type as a new buyer will depend on a few factors. First, you should consider your budget. Generally, condos are the least expensive to own, followed by townhomes, duplexes and triplexes, and then detached houses. Of course, prices can vary, but this is a good rule of thumb to go by. You should also think about your ideal location. If you want to live in an urban area with easy access to amenities and transportation, condos and townhomes are a good bet. Detached houses tend to be a good option for more rural areas.
Maintenance is another important factor. Detached houses have the most maintenance requirements, and they all fall on the homeowner to cover. The good news is in these cases, the homeowner has ultimate control over their property. Condos and apartments have associations that take care of a lot of exterior and common area maintenance. However, condo owners have little or no say in how the property looks.
Finally, you should take a moment to think about your future plans. Do you want to start a family? Will you be living here long-term? How will your needs change down the line? This might affect what the best property type is for you!
Contact a broker!
When you decide to enter the market as a new home buyer, getting in touch with a mortgage broker is a great first step. We can discuss your budget and housing needs, as well as the types of mortgage products that would suit you. This will help you narrow down the best property type for your situation, so you can dive into the housing market with confidence.
Deciding on the best property type to purchase is an important part of the buying process. It will help you determine your mortgage needs, and ultimately succeed in the housing market. If you have any questions about your mortgage, get in touch with me!