Six Types Of Homes - And Their Advantages

The following types of homes are not differentiated by whether they are brick or wood or Victorian or modern. This is about the different purposes a house can serve according to your situation and goals. Which one is right for you? Maybe the advantages and disadvantages of each listed below can help you decide.

Condos

Condominiums are simple. Ordinarily the lawn mowing and all outside maintenance is included in the association dues. You never worry about the yard or the roof, and there may even be a pool that you don't have to clean. This makes life simple for retirees, single people and young couples without kids. Sometimes they are also great starter homes. When we were living in Tucson, Arizona, for example, two bedroom houses started at $160,000, but a two bedroom condo could be bought for $80,000. Keep in mind though, that in some areas condos will cost more than houses. Also, there will be rules, so be sure you can live with them before you buy.

A Family Home

A basic family home is usually the goal if you have children. Whatever the style, the idea is to have room for everyone and preferably a yard for the kids to play in. One advantage of buying a basic three bedroom, two bathroom house is that this is the easiest type of home to sell. One disadvantage is that these "regular" homes can take a lot of work and money to maintain.

A Mobile Home

People buy mobile homes because they are affordable. A used mobile in a park might sell for under $10,000, and though they go down in value, if you paid cash you would have only the monthly lot rent. That can be hundreds less per month than what it would cost you to rent an apartment. On land a mobile will often cost less than half of what a similar-sized house costs, and will appreciate in value (because of the land). This can be a great way to get into home ownership. My first home was a mobile on a lot I bought for $19,500 and sold for $45,000. They do generally have lower-quality construction compared to houses, so be prepared for a few repairs and annoyances.

A House In Town

I don't like the fact that our current house is over 100 years old. It is nice, but I don't see why people are so fascinated by old homes. This is one of the problems of buying near the center of a town or city - the houses are usually all old. The big advantage, and the reason we are here, is that you can walk downtown. There is even a grocery store within walking distance. Being in town is a lifestyle we love.

A House In The Suburbs

In the suburbs you get newer homes and room for the kids to play. In some cities this is where you have to move to get away from the crime. If it is a nice subdivision, you can expect decent appreciation over time as well. The drawbacks include yard work, maintenance and being farther away from stores and jobs. You may want to consider those extra miles now that gasoline is getting so expensive.

A Fixer Upper House

There are two good reasons to move into a house that needs a lot of work. One is just to get your home cheap. You might save $25,000 or more if you buy a "problem home" and do the repairs yourself. The other reason to do this is to make some money. The current law allows you to keep all the profits tax-free if you live in the home for two years or more. If you like working on houses and don't mind moving a lot, you could have a good chunk of tax-free profit every couple years.

Other Types Of Homes

Cabins are sometimes cheap, and may even be suitable as a home if you have a business that can be run from anywhere. People live in houseboats in some parts of the south, fishing off of their porches. A piece of land with an RV on it can be used as a starter home until the money is saved to build something. A duplex or triplex is a way to simultaneously invest in a home and rental units. There are many types of homes, so consider carefully what you really need.