Buying a townhouse pros and cons
Pros and Cons of buying a townhouse
A townhouse is a multi-level property that’s part of a row of houses. Usually, it has one or more shared walls but separate entrances and private outdoor spaces. It’s a great compromise between an apartment and a detached house.
If you’re thinking about buying a townhouse, whether it’s to downsize or to get into the property market, here are the pros and cons you need to know:
Advantages of buying a townhouse
A townhouse offers plenty of benefits that houses and units don’t provide. The pros of buying a townhouse include:
More affordable than houses
Townhouses are generally more affordable than most freestanding houses; the same is true in capital cities or sought-after suburbs. This type of property is a great entry point for first homebuyers who don’t have the budget for a detached house but still want the benefits of homeownership. And because of the lower price tag, homebuyers can expand their property search to areas that are otherwise out of their price range.
Less maintenance is needed compared to houses
Because townhouses are smaller, they typically require less upkeep than freestanding houses. The maintenance of the exterior and other common areas is the responsibility of the body corporate and not the residents. Fewer maintenance tasks can save townhouse owners a lot of time, money, and effort.
More privacy than apartments
Unlike most apartments, townhouses don’t have common spaces like shared hallways, an elevator, or a lobby, giving you more privacy. The only thing you do share is a wall (or two) with your neighbours. That’s still better in comparison to an apartment where you have people living on all sides, above and below you.
More spacious than apartments
Although often smaller than houses, townhouses can offer a lot more space than what you typically find in an apartment. Most townhouses have two levels, sometimes even three, which means more room to spread out. This makes them ideal for homebuyers who need extra bedrooms for visiting friends and family or space for a home office, which can be harder to find in an apartment.
Has community amenities
Often, townhouse developments offer residents community amenities such as swimming pools, gyms, clubhouses, and other communal spaces. The care of these facilities is managed by the body corporate, so homeowners can enjoy the facilities without worrying about the upkeep.
Disadvantages of buying a townhouse
When buying a townhouse, you need to be aware of the possible drawbacks. Understanding the cons of owning a townhouse can help you make a more informed decision when the time comes.
Strata title fees
When buying a townhouse, you’ll be on a strata title. Although you own the lot your townhouse stands on, common areas like the garage, gardens, and the like are managed by the body corporate. Usually, there are body corporate fees paid quarterly, so make sure to account for them when creating a budget. These fees can cost anywhere between $1,500 to upwards of $20,000 a year, depending on where you live.
Restrictions from the body corporate
If you want to renovate the property, you may have to discuss it with and seek approval from the body corporate. Living in townhouses may also require you to attend meetings with fellow townhouse owners where important decisions are made about communal spaces.
Lack of individuality
When you buy a detached house, you have the freedom to renovate the layout and design the facade however you want. It’s a different story when it comes to townhouses. These row houses tend to look similar to one another both inside and outside. If you want to make changes, you’ll need to check with the body corporate first, particularly if the renovations are a major structural change.
Lower resale value than houses
Sometimes, freestanding houses may attract better capital growth than apartments and townhouses. If the growth potential of your property is a priority, this is important to keep in mind.
The actual resale value of a townhouse depends on several factors, including location, nearby amenities, demand for townhouse accommodations, area demographics, and other market factors. The type of development itself can also affect the potential value growth.
Home loans for townhouses
Before buying a townhouse, you need to figure out how to finance your purchase. You can get an estimate of your borrowing power by using our online calculator. Or apply for a pre-approved home loan to see how much you could potentially borrow.
At loans.com.au, we offer a range of home finance options for you to choose from. Find a home finance solution that suits your needs best with competitive rates and useful features. Get in touch with our friendly lending specialists to learn more about how you can save money on your loan. Call 13 10 90.
Ready to get your home-buying journey started? Apply for a home loan online today!
Find out in under 2 minutes if you qualify for one of our low rate home loans.
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