6 things to look out for when buying a townhouse
Thinking of buying a townhouse? Here are 6 key things to look out for, from strata fees to noise and neighbours, before you sign on the dotted line.
Like the idea of accessing shared community amenities while enjoying the comfort and privacy of a house? A townhouse could be just the ticket!
While buying a townhouse certainly comes with its fair share of advantages, you’ll need to consider a wide range of factors before deciding on whether this type of property is right for you.
If you’re thinking of purchasing a townhouse, here are some factors you’ll need to be aware of.
1. Location and neighbourhood
Yes, we know we mention this all the time, but that’s because location really is an essential consideration when it comes to buying a home!
Look at the proximity of the townhouse to local amenities such as schools, shops, public transport, and entertainment facilities. In addition, do some research on the safety of the neighbourhood, as well as things like accessibility and property growth trends.
Being strategic about the location of your townhouse can be a factor in the long-term value of your property investment.
2. Strata fees and regulations
Townhouses often form part of a strata scheme, where owners collectively manage and maintain shared facilities and common areas.
As a townhouse owner, you'll most likely be responsible for paying regular strata fees to cover these expenses. Before deciding to purchase a property on a strata title, be sure to carefully review the strata fees and regulations that apply to your townhouse.
In addition, pay attention to factors like the frequency of fee increases, the amount available in the sinking fund for future repairs, and any restrictions imposed by the strata by-laws.
3. Size and layout
As with regular houses, townhouses come in a wide range of sizes and layouts to suit different preferences and lifestyles.
When considering different properties, think about the factors that are important to you. This might include things like the number of bedrooms and bathrooms, the size of the living spaces, or the layout of the kitchen or outdoor areas.
As well as taking into account your current needs, you should also consider potential changes in the future, such as a growing family or possible lifestyle developments.
4. Privacy and noise
While having access to shared amenities and community living can be a beneficial and comforting arrangement, they also mean additional considerations in terms of privacy and noise.
Depending on the design and layout of the complex, you may share walls, ceilings, or outdoor spaces with neighbouring units. Before choosing a property, look into factors such as noise levels, privacy, and the proximity of neighbouring units.
If possible, visit the townhouse at different times of the day so you can see what the noise levels and overall atmosphere of the complex are like.
5. Resale value and future growth
While it can be tempting to jump into purchasing a townhouse you love at first glance, it’s essential to think about the property’s potential for future growth.
Take a deep dive into the local property market and economic trends, so you can get an idea of how much your property’s value may increase over time. Make sure your research covers factors like historical sales data, market demand, and any planned developments in the area.
By choosing a townhouse in a high-demand location with strong growth prospects, you can help set yourself up for success with a property that that may provide solid return on investment.
6. Home loan options and affordability
Before committing to the purchase of a townhouse - or any property for that matter - it's crucial to explore your home loan options and assess your affordability.
Take the time to research different loan products, including interest rates, fees, and repayment terms. Getting conditional approval for a home loan is advisable, as this can help you understand your borrowing capacity and make the buying process more straightforward.
Remember to factor in additional costs such as stamp duty, legal fees, and ongoing maintenance expenses when determining affordability. Get an estimate your upfront costs with our stamp duty calculator.
Buying a townhouse can offer the type of convenience and comfort that many homeowners are seeking from their property purchase.
By taking the time to conduct thorough research, you’ll be prepared to make a smart purchase decision - and ultimately help find your dream townhouse.
Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.
Unloan is a division of Commonwealth Bank of Australia.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Tax law is complex and subject to change. For the latest information, check the ATO website or with your accountant or financial advisor.
Unloan is a division of Commonwealth Bank of Australia is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions are found on our Unloan Terms and Conditions. Modified Terms and Conditions will be set out in our Notice of Variation Agreement, if you are approved. 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.
