6 things to look out for when buying a townhouse

An overview of what to consider when buying a townhouse

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.

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.

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.

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.

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.

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.

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.

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.

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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.