Type of Housing and Neighborhood

With your potential monthly budget in place, you are well equipped to move forward with your housing search. Starting off, you’ll find a whole world of housing and neighborhood options available to you.

Type of Housing

While there are a good number of housing styles out there, each one provides unique features. The type of house you choose will depend greatly on your lifestyle and personal goals.

Single-Family Home

With the purchase of a single-family home, homebuyers acquire ownership of the home as well as the surrounding lot. All maintenance expenses and property taxes would be the homeowner’s responsibility. Of all housing choices, this one typically provides the most privacy and flexibility.

Condo

In purchasing a condo, the buyer owns the areas within the walls of the living space but not the surrounding lot of land or building. Typically, a condo is governed by guidelines from a homeowner’s association. These associations require monthly dues or annual fees (which are not tax deductible). In turn, the condo owner does not hold sole responsibility for repairs and maintenance to the unit and has access to property management services. Condo units are evaluated individually to determine property taxes (which are the condo owner’s responsibility and are tax deductible*).

Co-ops

In a cooperative housing project (co-op), the buyer owns shares of a corporation which owns the building where the apartment is located. In essence, the person rents the living space from the corporation that owns the building but doesn’t own it.

As with a condo, there typically is a governing association for co-ops. Through the required monthly or annual dues (not tax deductible*), the resident of the co-op is free from the responsible of repair/maintenance and upkeep of the external areas; property management services are provided.

Unlike a condo, the co-op unit is not individually taxed. The corporation that owns the building is taxed as an organization instead. Then, according to the shares of ownership in the corporation, the amount of taxes is divided among shareholders.

Planned Unit Development

Also called a PUD, a Planned Unit Development is structured so that the buyer not only owns the house and the surrounding lot, but the person also purchases and owns a portion of common space that is shared with others that live in the development. These common areas are maintained through the homeowner’s association. As with condos and co-ops, these fees are not tax deductible*

Type of Neighborhood

Choosing a Neighborhood

As you consider your housing choices, also strongly consider your neighborhood options. The neighborhood you live in is as important as the house itself.

Commute

Do you need a quick commute to work? Keep in mind short commutes limit your neighborhood options.

Your Personality

Do you prefer country, suburban or urban living?

Family

Is a certain school district important to you? Do you need to live near other family members?

Outside Involvements

Do you want to live close to your church or temple? What entertainment venues are nearby?

Future Zoning and Development

Is the park behind your house going to be developed in the future? Does this community have plans to build a large attraction of some sort?

Neighborhood Age

What will the neighborhood look like in 10 years? Are you satisfied with an older neighborhood? Are you content with potential changes your neighborhood could make?

Time of Day

Does the neighborhood feel the same at night as it does during the day? Is weekend traffic heavier than during the weekday?

Extra Costs

Can you afford the county or city taxes or any homeowners association fees?

Homeowners' Associations

What are the homeowners association rules? Are they good for protecting home values?

Neighborhood Investment

Have the homes in this neighborhood held or increased in value?

Talk to the people who live in the neighborhoods in which you are interested. These individuals will know the most about the area and are your potential neighbors. More than anything, you'll want a neighborhood where you feel at home.

"*Please consult with your tax advisor or attorney to discuss your specific situation"