5 things to consider when buying a terrace house in Australia

An overview of what to consider when buying a terrace house

Offering an attractive mix of urban living and historical charm, terrace houses have a unique appeal and can often be found within vibrant neighbourhoods that come with a pleasant sense of community.

However, before you decide to purchase a terrace, it’s crucial to consider a range of important factors that are relevant to this style of property.

What is a terrace house?

Terrace (or terraced) houses are multiple identical houses that usually share internal walls with each other.

Terraces can range in height from single storey to four storeys and generally have between two and four bedrooms, and a front and backyard or courtyard.

Older terrace-style houses often come with a Torrens Title - meaning you own the land on which the property is located - while newer terraces may be on a Strata Title similar to an apartment in a complex.

Five things to consider when buying a terrace

1. Shared spaces and amenities

Unlike freestanding homes, terrace houses often share common areas and amenities with neighbouring properties.

Before purchasing a terrace house, consider the quality and maintenance of shared spaces such as courtyards, gardens and communal facilities like parking areas or bike storage.

As well as giving you an idea of what kind of amenities you could benefit from, looking into the condition of these areas can also offer insights into the overall upkeep of the property and the dynamics of the community.

2. Renovation potential

Keen to enhance your property and upgrade your living space? You’ll be pleased to know that terrace houses can offer exciting opportunities for renovation and customisation.

If this is important to you, consider the scope for renovations or upgrades to make the property more suitable for your needs and lifestyle, whether that’s related to the functionality of the place or the aesthetics of the space.

As well as evaluating factors like the structural integrity of the building, you’ll also need to look into any planning restrictions or historical preservation requirements.

3. Historical significance

As mentioned above, many terrace houses in Australia come with a rich historical heritage and form a part of the local culture and neighbourhood appeal.

Before buying a terrace house, research its historical significance and any heritage protections that may apply. Properties with heritage status may be subject to additional regulations or restrictions on alterations and renovations.

Even if you’re not looking to renovate the property, understanding its historical and architectural legacy can make you feel more connected to your home knowing you own a piece of history!

4. Community dynamics

Traditionally, terrace houses formed part of close-knit communities where neighbours developed strong connections with each other. This sense of community can still be seen in some terrace houses today, so it’s important to keep in mind.

Before committing to buy, take the time to explore the local community - and if possible, get to know your potential neighbours (after all, they’re likely to have the best insights into the property!).

Consider factors like social events, neighbourhood initiatives, and shared amenities that help to create a sense of belonging and community spirit.

5. Environmental considerations

As with any property purchase, it's essential to consider the environmental factors that may impact your living experience in a terrace house.

Pay attention to elements such as the amount of natural light and ventilation and look into the energy efficiency of the property which can have an impact on your utilities bills, and your carbon footprint.

What’s more, be sure to consider any environmental hazards or risks such as flooding bushfire, or pollution that may impact the property's long-term viability.

Choosing to buy a terrace house can be a fantastic opportunity to enjoy the perks of urban living while also being part of a community.

By taking the time to explore your options, you can take advantage of the many benefits on offer from a terrace house - and possibly even own a home that’s rich in historical significance.

Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.