The real estate market is tough right now. With interest rates through the roof, the housing market slowing down, and apartment prices continuing to skyrocket, renters are wondering: Is it worth it to buy something smaller than a house? Depending on your financial situation and goals, it could be the right move for you.
When looking for something smaller than a house, you’ll first have to decide if you want a condo or a townhome. But what is the difference between a townhome and a condo? A condo is basically an apartment you own, while a townhome is more like a single-family house. However, townhomes do not stand alone and share walls with residences on either side. You do often get a yard with your townhome, which can be a big plus if you have children or pets.
But do you buy or rent townhomes? Luckily, you can do either. It’s just about weighing the benefits of each to find which option best fits your lifestyle.
Perks of Buying a Townhome
You Can Start Building Equity
One of the main reasons to buy any property instead of renting is that it allows you to build equity. You’re making monthly payments whether you have a mortgage or rent, but that money is going nowhere but your landlord’s pocket when you rent. If you own your townhome, it could increase in value over time, helping grow your assets.
You Can Make a Profit When You’re Ready to Move
Ownership might sound permanent, but nothing is stopping you from selling your townhome once you’re ready for new space. If the value of your townhome goes up, you could walk away with a decent chunk of change after deciding to sell.
Are townhomes a good investment? And are townhomes hard to sell? Townhomes are usually cheaper than detached single-family homes, making them lower risk. If you’re new to the world of investment property, a townhome could be a great start. Plus, you can always rent out your townhome if you’re struggling to sell it or if the market value isn’t where you want it.
You Don’t Have to Worry About Rent Increases
Rent increases don’t just apply to apartments. If you rent a townhome, you can expect the rent to increase by at least a small percentage when lease renewal season comes around. You could spend hundreds of dollars more a month in rent due to this increase.
If you own your townhome and have a fixed-rate mortgage, you’ll always pay the same amount each month. You may have to worry about increased property taxes, but most states put a cap on the amount, so you can budget ahead of time for the change.
You Have the Freedom to Decorate and Renovate
Most rental properties have strict rules regarding what you can and cannot do to the walls, flooring, and fixtures. On the other hand, townhome owners have total freedom to make the space their own. You can paint the walls lime green, hang dozens of family photos, and switch from carpet to hardwood floors. Your townhome is your oyster, and you can do whatever you want with it!
Perks of Renting a Townhome
You Can Wait Until House Prices Drop to Buy
Maybe you want a house but don’t quite have the funds to purchase yet. Renting a townhome can offer you more space than an apartment, and a cozy backyard can make you feel like you’re in a traditional house. Once housing prices drop or you’ve saved up enough for a down payment, you can end your lease and purchase your dream home.
You Have More Flexibility with Where You Live
When deciding whether to rent or buy, you need to consider time. If you plan to stick around for at least the next 3–5 years, buying and selling your townhome might make more sense. If you lead a more nomadic life or have plans to move cities in the near future, renting will give you the flexibility you need. It’s easier (and often more affordable) to move at the drop of a hat with a lease than a mortgage.
You Won’t be Responsible for Repairs and Maintenance
One of the biggest benefits of renting is that you don’t have to handle or pay for the repairs. Your landlord or property manager will be responsible for making repairs and keeping up with maintenance, and the cost is usually on them for these tasks. Life can be a lot less stressful when you don’t have to worry about fixing that broken HVAC system or checking the air filters.
You Don’t Have to Take a Gamble with Property Values
While buying can help you build equity, you might not always make a profit when deciding to sell. The housing market is fickle, and ownership can be a gamble. If you buy and property values go down or the market crashes, you could end up worse off than before you purchased the townhome. When you rent, you’re less likely to be negatively impacted by the whims of the market.
Furnish Your New Townhome with CORT Rental Furniture
Whether you rent or buy a townhome, you can count on CORT Furniture Rental to temporarily furnish your place. Moving can be a hassle — renting furniture gives you the freedom to quickly get settled into a new place without worrying about moving old furniture or buying pricey new pieces. Plus, with CORT’s AR technology, you can envision what pieces from your furniture rental package would look like in your new space.
Start by creating a furniture rental package online and adding the furniture you need, from living room sets to bedroom furniture. Then select a delivery date. Next, our professional delivery team will set up every piece of furniture for you — from the bed frame to the dining room table. When you’re finished with your furniture, we’ll pick it up for you! Start furnishing your townhome today!