Condos and Townhomes Make Sense for First-Time Homebuyers, Active Adults, Singles and Retirees

Condo and townhome living provide the best of all worlds for some people.

Many have the social life found in an upscale apartment community and upkeep is minimal. Prices are generally lower than detached homes, but condominiums tend to be a good investment and they have the same tax breaks provided to detached-homeowners.

Also, condos and townhomes are often found close to entertainment, health facilities and jobs. Or they have their own facilities supported by association fees. So there’s also a convenience factor, not to mention savings in gasoline. But as with detached homes, more stringent mortgage requirements have kept some potential buyers off the market.

The condo market was down in 2010, but is expected to pick up some this year. Fountain Valley has a good supply of condominiums, and some are well-located, offer exceptional features and are attractively priced.

For instance, a real estate agent recently held an open house for a resort-style condo annex to Los Caballeros Sports Club on Newhope Street, Fountain Valley. The two-bedroom, 1,040 square-foot third-floor unit was advertised at $269,900.

That works out to be a mortgage payment of about $1,225 per month.

Average rent paid in Orange County stands at about $1,500. In Fountain Valley, a two bedroom apartment rents for about $1,400.

Features at the advertised Newhope Street condominium included a new granite countertop, gas range, microwave oven, dishwasher and a new stainless steel kitchen sink. The unit includes a one-car garage.

The unit is a three-minute walk to Los Caballeros Sports Club, which offers tennis, basketball, racquetball and volleyball courts for members. It also has a fitness center, a 50-meter pool, spas and banquet facilities.

Other recent listings show a three-bed, 1,402 square-foot condo on South Camo Bluff Court for $379,900, a three-bedroom 1,720 square-foot on Los Coyotes Court for 410,000 and a two-bed, 1,064 square-foot condo on Sylvan River for $215,000.

The median home price in Fountain Valley is about $579,000.

According to DataQuick’s Orange County home buying report, the average price for an Orange County house in February stood at $465,000. By comparison, the average condominium was priced at $292,500.

Condo prices are up 2.3 percent compared to a year ago. Detached home prices are down 4.1 percent from a year ago.

Buyers of condos will find a number of financial advantages of a condominium over rental housing. Condo and townhome owners can take advantage of tax deductions for annual interest paid on their mortgage. Condo buyers can also deduct the total amount of their annual property tax bill.

Greater stability in living costs is another reason to choose condos and townhomes over rental homes. Monthly home ownership expenses stay relatively constant while rents can jump substantially. And equity grows each month on condos and townhomes. Also, if a condo or townhome is kept in good condition, it can appreciate even in flat markets.