Condo, PUD, Co-op: What's the Difference?
I get asked this question all the time. What IS the difference?
In a condo, the walls, floors, and ceilings are owned by all residents; There are HOA dues; covenants, conditions, and restrictions. The value depends on the desirability of entire development.
A Planned Unit Development (PUD) is similar, but Individuals own the structure and the land directly under the home. It can be easier to get financing on a PUD.
A Co-op is a corporation made up of all tenants; larger units have more power in how building is run; fees for taxes, mortgage, repair, improvement; heavy scrutiny of financial, personal history.
A townhome is not a form of ownership, but a term for an attached row house.
The advantage of owning one of this is that the prices are often lower than for single-family home; maintenance is minimal or nonexistent, and there is safety in “cluster” environment.
The disadvantages are that there are HOA dues and the CCRs may be complex.