We’re often told that standalone homes are the best purchase as an investment – but is that still the case? Buy a townhouse, and you might just disagree.
Even if you identify as an owner occupier, most people purchase a specific property fully aware that it’s often the biggest investment of their lives. After all, anything that costs more than six figures is an asset, and the aim of the game is to ensure that it rewards your investment further down the track in the years to come.
As a general rule, established homes are generally more likely to have their own land, which can provide huge boosts in value. They also have better scope for negotiation on price, and further value can be added through renovation, subdivision or development.
However, they certainly don’t come cheap, and standalone properties that are very old will prevent you from claiming many depreciation benefits, and will attract lower rental yields and higher maintenance costs. While the alternative has long been an apartment, this type of dwelling attracts fees of its own linked to body corporate, and can be risky for long term growth – but are there really only two choices? Not anymore.
How Townhouses Are Shaping The Future Of Property
Today, many property professionals would argue that we’re living in the era of the townhouse. As a happy medium between a house and an apartment, these types of abodes are on the rise for retirees downsizing, first home buyers breaking into the market, and even families who are trying to live within their means.
Townhouses are typically a style of multi-floor home that share one to two walls with adjacent properties, but have their own entrances and often feature courtyards or small gardens. In the suburbs, townhouses are often uniform homes built in a distinct community that might have its own homeowners association – but why should you buy a townhouse?
Access To The City – As a general rule, the closer you get to a city’s central business district, the more expensive property gets. People don’t really want to spend every day in their home – they like to get out and about. Green space, good restaurants, being close to work and access to public transport have all become important factors, and townhouses are often built in areas that have access to all of these appealing factors.
Lower Maintenance – It’s always worth remembering that while bigger properties often sound ideal, they also come with larger requirements linked to ongoing maintenance for their upkeep. While older properties are usually more affordable, their age alone means that buyers should expect to take on more work to fix them up. As most townhouses are built in the last two decades and are smaller, it means less investment on keeping them in tip top shape.
Cheaper Entry Point – One of the primary attractions for those looking to buy a townhouse is that they are often significantly cheaper than a standalone property. While apartments may be even more affordable, townhouses offer the best of both worlds, such as access to a garden or courtyard, while still being positioned in a sought after suburb or location. For investors, they are also a safer bet for generating a profit with less debt.
Multiple Markets – For investors weighing up whether to buy a townhouse or not, it’s worth remembering that these types of dwellings appeal to a wide pool of potential tenants, and even future buyers. Townhouses appeal to young families looking for more space while retaining their lifestyle, while they’re also suitable for retirees in the process of downsizing. Either way, townhouses are blowing the concept of a three bedroom brick home out of the water.
If you’re looking to buy a townhouse that will pay for itself in the years to come, it’s all about selecting the right type of property. Look for something appealing or rare about the townhouse that other properties may not offer, such as a second carport, a larger courtyard, less adjoining walls or larger living spaces. One or more of these additions will add something special to the dwelling, and make it stand out in the future for both buyers and renters alike.
For those exploring their options for purchasing property, it’s important to get the right advice instead of making big decisions based on guesswork. A savvy mortgage broker has an in-depth knowledge not just of financial products, but many also have property portfolios of their own to boot.
As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for your first mortgage, then it’s worth getting in touch with the professionals.
Partnering With Home Loan Professionals
Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.
Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.
If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.
