Buying a real estate property can become a complicated process. You have to think about issues such as the options you have at your disposal, your budget, and the location. Making such considerations can ensure that you get the best value for money.
Suppose you are looking for a residential property. You can either invest in a detached single-family house, a condo, or a townhouse. Although any option is ideal, choosing the best requires understanding all three.
Townhouses have emerged as the go-to option for first-time homeowners and homebuyers working with limited budgets. Research from the Census Bureau shows that these houses make up 10% of all residential properties sold within the United States.
So, what are townhouses, and should you invest in one?
This guide covers everything you need to know about townhouses. If you need more information, read on to learn more about the pros and cons of townhouses and what you should consider before investing in one.
What is a Townhouse?
A townhouse refers to a single-family home having a minimum of two floors and one that is attached to another separate house. Townhouses occur mostly in densely populated urban centers and are ideal because they utilize vertical spaces. It is vital to add that residents who live in townhouses are responsible for maintaining the interior and exterior properties.
Townhouses are managed by overarching governing organizations called homeowner’s associations (HOAs). A HOA oversees the development of townhouses and ensures that the exterior parts of the houses are up to standards. The house owners pay fees to the homeowner’s associations, and this money is used for water, trash removal, and sewerage services.
Homeowners who invest in townhouses must live within common interest developments. Unlike detached single-family homes, townhouses are generally smaller, which is why there are shared walls to save space for development. However, townhouses are cheaper than detached single-family homes. If you are a first-time homeowner with a limited budget, then investing in a townhouse is ideal for you.
What are the Pros of Buying a Townhouse?
Because buying a house is an important decision, it is vital to consider your target property’s overall value. There are several advantages of townhouse living that make them better alternatives to detached single-family houses, as discussed below:
- Sense of Community
As earlier stated, townhouses are typically found in densely populated urban centers. Such areas have an immense sense of community and companionship. Townhouses incorporate shared walls implying that you are closer to your neighbor than in detached single-family homes. The presence of communal spaces (managed by HOAs) can guarantee kinship between you and your neighbors.
- Value for Money
Townhouses are also valuable investments with immense value for money. These houses are cheaper alternatives to detached single-family homes, meaning that you can work with a limited budget when buying a townhouse. Another thing to note is the presence of relatively lower property taxes. Compared to condos, the HOA association fees are also lower. Therefore, townhouses are ideal for first-time homebuyers.
- Less Maintenance
Another appealing aspect of owning a townhouse is the absence of activities such as landscaping which are the responsibility of the HOAs. You also do not have to worry about lawn mowing and weeding. Townhouses also have communal pools that you do not have to clean, unlike the case in single-detached homes.
- Good Location
The final advantage of living in a townhouse is location. Most townhouses are located in densely populated areas adjacent to establishments such as shopping malls, restaurants, and entertainment spots.
Some townhouses are also strategically located near hospitals, schools, and parks, which helps homeowners save transport money.
What are the Cons of Buying a Townhouse?
The main disadvantages associated with owning a townhouse are as follows:
- Dealing with Homeowner’s Associations
It is no secret that living under the management of HOAs comes with certain restrictions regarding home management. For some people, this might seem like a tall order. Most homeowners don’t want to be told what color to paint their houses, how to use their patio, and the types of windows to use in their houses. The monthly charges homeowners have to pay to HOAs is another unappealing prospect that can put you off.
- The Presence of Noise Pollution
As earlier stated, townhouses are located in densely populated urban areas. These areas are prone to noise pollution because you will likely live close to most neighbors. If you are looking for a quiet and serene environment, then a townhouse is not the best option.
- Multi-floor Living
Although it might be attractive to some people, multi-floor living is not suitable for all of us. The presence of stairs can be unappealing for older residents or persons living with disabilities.
Tips for Buying a Townhouse
Before investing in a townhouse, you should consider the following suggestions to ensure that you get maximum value for money:
- Budget your money: As with all other types of investments, make sure you set a reasonable budget. Based on your financial situation, make sure that you choose the best option.
- Use technology: Today, technology has made it easier to search and pay for real estate property. You should leverage multiple listing services (MLSs) when looking for an ideal townhouse. Suppose you are searching for homes in Texas. You can apply filters to ensure that the search results only show townhouses, which can save you time.
- Think about the long term: Finally, you should consider why you are buying a townhouse in the first place. Do you have a family, or do you plan to have one? What are your occupational objectives? Thinking about such issues can ensure you make the right decision.
Townhouses are ideal investments for first-time homebuyers and homeowners working with limited budgets. These are single-family homes with a minimum of two floors and that are attached to other houses. Townhouses are prevalent in densely populated urban centers.
The main advantages of these real estate properties are the sense of community, the value for money, less maintenance involved, and a good location. However, townhouses come with the baggage of dealing with HOAs, are located in areas with noise pollution, and are unsuitable for senior citizens and persons living with disabilities.
If you want to invest in a townhouse, ensure that you work within your budget, use technology, and think about the long term.