What's the difference between a condo and a townhouse? A townhouse refers to a style of construction and not a type of management, whereas condominiums are the types of ownership. The difference between a PUD townhouse and a condominium townhouse is that in the PUD, you actually own the land your townhouse sits on, and usually a small back and front yard also. Is buying a condominium a bad idea? Buying a condominium for investment is much more affordable than buying single-family homes and generally score higher rental income. However, with that said, condos often appreciate in value much slower than single-family homes. This is because you don't own the land, which is a key factor to increase or appreciate a home's value. Is buying a condominium a good investment? If you are planning to rent out your condo, the sum of the monthly mortgage, cost to maintain the property, and condo and association fees are really going to impact whether or not a condo is a good investment for you. However, iif you can get the condo at a very low price, the investment could be worth it.