AQUIRING
Different Types of
Residential Homes
Selecting the right property investment for you
BY DREW HOOK
K
nowing what type of property you are after is
often the first step on the road to purchasing.
When investing in property you have a wide
selection, ranging from single-family homes through
to large condominiums or apartment buildings.
Typically, lifestyle, location preferences and financial
situation affect your choice of the right type of
residential building for you
Single-Family Residences
This is the most standard property type, which
is designed to support just one dwelling. This
type of property does not include a common
area as you’d find in a condominium complex and
similar developments. They do not share walls
with neighboring properties, and should have land
separation from all sides of the property, as well as
above and below. These are the cheapest properties to
finance, as they are the norm.
Townhouses
A single-family dwelling typically made up of two
floors that shares side walls with nearly identical
properties. It differs from a condominium in that
no neighboring unit is above or below, and usually
features an outdoor space in front and behind the
property. It’s similar to a condominium in that
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Residential Handbook 2015
tenants have access to a common area such as pool,
spa, tennis courts and more. Many banks and lenders
consider townhouses single-family residence, making
mortgage financing more affordable.
Duplex
A duplex is a common multiple residence building
that has two separate residences. In some cases,
people buy one side of a duplex property just as
they would a house. Often though, investors buy
duplexes to earn rental income. As a rental resident,
you get the benefits of living on a property with a
small number of residents, but you don’t have to get a
mortgage or make a down payment.
Apartment Building
There are a number of apartment buildings of
varying sizes and resident populations. Triplexes
and four-unit buildings are fairly common in
many communities. Large buildings may have any
number of residential units, and many apartment
communities have a number of buildings.
Condominium
A condominium is similar to an apartment, but
you actually buy your condo, which is a share of the
building. Some condo buildings have several floors
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