Investment and Financial Markets

What Is a Single-Family Home (SFH)?

Gain a clear understanding of what defines a single-family home. Explore its distinct features and how it compares to other residential property types.

A single-family home, often abbreviated as SFH, is a common residential property type. It is designed and built to serve as a dwelling for one household.

What Defines a Single-Family Home

A single-family home is a standalone, detached residential structure. This means the building does not share any walls or a roof with another residential unit. The property typically sits on its own distinct parcel of land, which the homeowner also owns exclusively.

This type of ownership grants the homeowner full responsibility and control over both the physical structure and the land it occupies. Owners are accountable for all maintenance, repairs, and improvements. Property taxes are assessed on the combined value of both the house and the land.

Each home features a private entrance and direct access to a street. Each home also maintains its own independent utility connections for services like water, electricity, and heating. This exclusive setup contributes to greater privacy for residents.

Comparing Single-Family Homes to Other Property Types

Condominiums involve individual ownership of a specific unit within a larger building or complex. While a condo owner possesses the interior of their unit, common areas like hallways, recreational facilities, and the land itself are jointly owned with other unit owners.

Condo owners typically pay monthly homeowners association (HOA) fees, which cover the maintenance and insurance of shared common areas and the building’s exterior. Unlike single-family homes, property taxes for condos usually reflect only the value of the individual unit, not the land. This arrangement reduces individual maintenance responsibilities for owners.

Townhouses share one or more walls with adjacent units in a row. Townhouse owners typically own the structure and the small plot of land directly underneath it, including a private yard. While some townhouses may be part of an HOA, these fees are often lower than those for condos because owners are usually responsible for exterior maintenance of their own unit.

Multi-family homes, such as duplexes or triplexes, contain multiple separate living units within a single structure. Each unit has its own distinct living space, including a kitchen and private entrance. Unlike single-family homes, these properties are designed to accommodate more than one household, potentially offering rental income opportunities for the owner.

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