How to select the right townhouse. Due to the continuous increase in land prices in Australia, the prices of independent homes are rising, so many home buyers and investors are now targeting townhouses with higher cost-effectiveness.
So how to choose an excellent townhouse? What kind of townhouse is a good design? How do you maximise living comfort and ensure that the properties you invest in is extremely popular in the future?
Townhouse living is on the rise
The rapid increase in population and the rise in housing prices have made living in single standalone homes sometimes an unattainable dream for more Australians, particularly in metropolitan Melbourne.
The main type of buyers who show great interest in owning townhouses include first home buyers, retirees, new immigrants and downsizers looking to occupy in a blue-chip location.
Many young people believe current townhouse designs are more comfortable than old homes in terms of living space. Since the old house was designed a decade ago, it is no longer functional in comparison to the modern lifestyle.
In the old houses especially in the main living areas, including the dining room and kitchen were all situated in separate areas. When you look at the new form of townhouse living designs, we are seeing much wider spaces known as open floor plans.
Open floor plans offer a lot more natural light and allows you to design your furniture more effectively.
Although the land of the townhouse is not as big as the standalone house, the internal space can surprisingly be bigger. The internal spaces are wider and often further extend into an outdoor area or alfresco too.
How to choose a townhouse
Choose the location before choosing the home. It stands for reason to buy a townhouse where you can’t afford a traditional home. Furthermore, you buy an apartment where you can’t afford either a townhouse or a standalone home.
It’s common for a residence to have four or five family members in a family. You need to ensure your living arrangements are catered to suit a townhouse, but one of the most important aspects to choosing the right townhouse is location. Buying a townhouse in certain locations, may actually be $500,000 – $600,000 cheaper to a standalone home. This is particularly evident in the bayside corridor and eastern suburbs of Melbourne.
In our experiences at Crest Property Investments, we help many buyers (both investors and owner occupiers) purchase townhouses. Most show most popularity in owning the front home on a site or the back property.
The front home is generally the most popular because it faces the street frontage. Many people feel an independent living arrangement having the front residence. The back is also very popular as it’s quitter and further away from the street. You have less foot and car traffic noise, it feels more secure and often has a large outdoor area, sometimes the largest as it has a back yard instead of a front yard.
The townhouses positioned in the middle of the site are often cheaper, however offer less landscape or outdoor space. Sometimes the outdoor area may be a large balcony over a ground courtyard. The internal area may often be the same as the front and back, but are sometimes part of shared walls.
Townhouse sites can range from as little as two on a plot to 20-50. Having 20-40 is established in a master planned community over a subdivided block of land.
We have also seen a trend in triple storey townhouses. These can have good internal space, but generally come with a balcony over a ground courtyard. For some, this is ideal, but owners with pets may find this difficult.
Another consideration when choosing a townhouse is to understand your work commitment. In the wake of the global pandemic, many have worked from home. This may become the norm or employees may work both at the office and home. Sourcing a townhouse that features a study or study nook may be very helpful.
It really comes down to your personal taste and budget. The front and back homes are generally more expensive. You really do need to take into consideration your personal circumstances. Financially can you afford it and does the home look function to cater our lifestyle.
Advantages of investing in townhouses
There are many advantages of buying townhouses. The most advantageous aspect that most people would agree is you can own a townhouse in a blue chip corridor closer to an affordable price range as apposed to a standalone house.
For investors it can be very tax effective when buying a brand new or off the plan townhouse. The tax depreciation entitlement can be very attractive.
With many Australian’s living a busy lifestyle, townhouse living require far less property maintenance.
When buying new, you’ll also appreciate the new modern fixture and fittings while enjoying the open floor plan designs that have been well received in the last decade.
Disadvantages of investing in townhouses
With any property purchase there must be some disadvantages. The most common is the need to have or pay for an owners corporation (previously known as a body corporate).
It’s important to note that an owners corporation (OC) differs greatly to that of an apartment building. For townhouses, if you have a shared driveway or common space that needs to be maintained or insured, you’ll need and OC.
There are many types of townhouses
There are many types of townhouses and they are not always perfect. Even the most expensive homes can find some short comings. As mentioned earlier, always take your personal circumstances first. This will ensure the location, property type, floor plan and budget suit your needs.
