When you look for a home, you will come across many different types of properties. Knowing what is available and what you want will help narrow down your options. The most popular type of real estate is the single family home. What is it and how does it affect your ownership?
Keep reading to find out more.
A single family home is a home on its own lot or parcel of land, it does not share land with other properties. SFHs do not share walls or roofing with other homes. It is its own detached property. Single family homes also have private street access (no lobby or shared parking lot) and its own utilities.
Other characteristics of single family homes include:
- Attached or detached garages
- Small or large yards depending on the size of the lot
- Single kitchen
The Reasons to Consider a Single Family Home
Single family homes have many benefits, most of which is privacy. Since you don’t share walls or property with others, you have more privacy than you would in an attached home. Typically, you have neighbors, sometimes rather close neighbors and sometimes neighbors with quite a distance, but they either way, the neighbors are much further away than those in an apartment, condominium, or duplex.
Other benefits of single family homes include:
- Freedom to do what you want with the home
- More room to store items rather than feeling crammed
- The ability to work outdoors, which can be good if you love gardening and yard work
It is often easier to get mortgage financing on a single family property than it is any other type of property, including condominiums. Mortgage lenders prefer single family properties for the lower risk of default. When you share the property with other owners, such as is the case with a condominium, the lender is dependent on all owners making their payments in order to avoid foreclosure. If even a few owners lose their unit to foreclosure, it can bring the values of all units down, putting all lenders at risk of default.
Reasons to Consider Something Other Than a Single Family Home
Single family home living isn’t for everyone. It does have its downsides including:
- There may be a homeowner’s association that limits your ‘freedom’
- You must shoulder all maintenance and repairs as well as the costs
- You are solely responsible for the property taxes
If you aren’t ready to take on the hard work and financial responsibility of a single family home, condominium or townhome living may be a better option for now. When you own just a unit, but not the land, the homeowner’s association manages the maintenance and repairs on the property, taking the financial and physical burden off you.
A single family home is a great option when you are ready to take on the work and financial responsibility of it. You will likely get a mortgage much easier and have more freedom in what you can do with the property. If you aren’t ready, thought, there are several other options available to you.