Dramatically increasing prices for detached and semi-detached single family homes have made them almost unattainable. Buyers and real estate investors are naturally turning to the next best thing: townhouses. In this article, we’ll explore the benefits and possible cons of owning a townhouse. So if you’re considering buying one, read on.
First off, what is a townhouse? Townhouses are single-family homes that are usually tall and narrow and connected to neighbouring houses by at least a wall.
Townhouses are often located near a downtown area, and are chosen by tenants as a more affordable option for commuting to work. It’s important to pick a townhouse in a favorable location, as this will make it popular among tenants.
Townhouses are easier to maintain than detached homes, as they usually are part of a Home Owners’ Association (HOA). While association fees may be expensive, common area maintenance is a breeze and requires no effort from your side. You could include HOA fees in the rent as well.
Townhouses help you become part of a community, and this would make any tenant of yours feel secure. There is also a private entry, and often a private patio with a gas connection for those barbeque nights! Privacy and security are often overlooked, but ideally should play a bigger role while deciding on a home.
Townhouses often have added amenities for tenants like pools, play areas and gyms. Costs incurred in maintenance of these amenities are usually included in the HOA fees.
What truly clinches the deal about townhouses is that they are cheaper than most single-family homes. This means a low financial risk for real estate investing. Tenants also find the rent affordable, in exchange for more space than a condo.
While there are significant benefits in terms of space and affordability to owning a townhouse, there are also some drawbacks to consider.
As townhouses have shared walls, the noise can sometimes be an issue. A loud party next door can keep your baby awake all night. This is a potentially troublesome issue especially if your neighbors are inclined to be a boisterous lot.
Townhouses rarely have basements or attics, which means there’s not much storage space. A few houses do come with a garage, but that’s rare too.
HOA fees depend on the amenities and the common services provided by the association. This could get expensive if there are more high-maintenance amenities provided.
Home Owners’ Associations usually have rules and regulations that they enforce strictly. All improvements and modifications to your house are subject to HOA clearance, and even then are extremely regulated.
Location is crucial. This is what will attract more tenants to your property. This will also influence the market value of your unit. It is also important to gather information about the HOA of the community. Learn how the fees are utilised, and see if all the amenities and services are topnotch.
Weigh all these factors before deciding, if you’re considering investing in a townhouse. If you have any questions, feel free to talk to us.
This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Tenantcube Inc. or its affiliates.
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