Chic vs. Geek: Home Appreciation
/We often hear from clients who want to know why condos and townhomes appreciate at a slower rate than single family homes. Isn’t price all about location?
CHIC (PEARL)
In general, single family homes do appreciate faster than townhomes or condos, but it’s also true that all real estate comes back to location. A townhome in a great location will appreciate faster than a single family home in a not-so-great location. That townhome could also come with community amenities that a single family home doesn’t provide. But you also avoid the HOA fees. The home value equation is extremely time-sensitive. At any given moment, prices can spike or sag, so there’s always a balance to be struck. If you’re looking for a long-term investment in a place you plan to call home, you can’t go wrong either way.
GEEK (KEVIN)
If you’re worried about appreciation time, it’s a safe bet you’re not looking for your forever home. Millennial buyers with little to no homeownership experience and high-demand jobs leaving them less time for maintenance and updates may benefit the most from starting out in a condo or townhouse, upgrading to a detached house only after learning what it takes. And at the other end of the age spectrum, Boomers may benefit from lower costs and reduced responsibilities of living in a townhome or condo. My two cents: Buy a home based on your personal preferences for location, lifestyle, and budget. You’ll appreciate this advice later!