Attached Living – Apartment, Condo, Co-op, or Townhome
Apartment
An apartment is a room or suite of rooms designed as a residence and generally located in a building occupied by more than one household. On average, tenants sign leases in one year increments. Traditionally units share a common water boiler and heating system which is paid for by the owner. A management company is hired to handle maintenance calls, cash flow, etc.
Condominium
A condominium or condo is essentially an apartment that is individually owned. Neighbors are above, below, or adjacent. They are generally less expensive than a single family and help to make prime locations more affordable. It’s common for owners to lease their condo like an apartment, but it may require the approval from the Association. The Association consists of owners that are voted into the following roles: president, vice president, treasurer, and secretary; all of which have equal voting power. The owners pay an assessment to the association that’s combined to cover building maintenance, water, scavenger, common insurance, etc.
Studio – dual function living room/bedroom as one
Simplex – single level
Duplex – bi-level / 2-floors
Co-operative
A cooperative or co-op is a structure with numerous apartments where a corporation owns the property and a purchaser buys shares of the corporation. It is managed by an Association and or management company. The Association consists of owners that are voted into the following roles: president, vice president, treasurer, and secretary; all of which have equal voting power. A credit and background check is usually required along with a board interview of the purchaser for approval. One must remember that the individual space is not owned, ownership is in a portion of the corporation. The owners pay an assessment to the association that’s combined to cover taxes, maintenance, water, scavenger, common insurance, etc.
Townhome/Townhouse
A Townhome is a mix between a single family and condominium. Private entry, multilevel living, square footage, and private parking are some of the features that resemble a single family. Similar to condos, townhomes are attached but in a different way; side by side. Townhomes are typically managed by an association and or a management company. The Association consists of owners that are voted into the following roles; president, vice president, treasure, and secretary; all of which have equal voting power. The owners pay an assessment to the association that’s combined to cover building maintenance, water, scavenger, common insurance, etc.
Detached Living – Single Family or Multi Family
Single Family
A single family home is a free standing structure; most are built on lots that include a small yard and parking. Greater square footage is typically the advantage along with a more private living arrangement. With those benefits comes greater responsibility; it’s wise to strongly recommended that the owner set aside a reserve for unplanned maintenance/expenses.
Multi Family
A multi family home consists of 2 or more apartments in a single structure similar to a condo or coop building; the difference is that all units are owned by one principal. Multi Families with a larger number of units typically are used as income property by investors. It’s important to understand that a successful owner of these types should have experience in the form of: lease negotiation, property management, financial cash flow, marketing, and more. SCG offers an array of services and support for clients with interest in these types of properties.
