A townhome or townhouse is a dwelling that merges the features of a condominium and a single-family home. They may be single or multi-storied units, triplexes or duplexes, or part of a huge townhouse community.
Furthermore, they come in various styles, shapes, prices, and sizes. If you’re thinking of investing in a townhome, it’s best you consider these factors before purchasing one.
Fees
It’s important you obtain the logic behind the charges and establish whether it’s merely due to higher maintenance and construction costs. Always opt for what works for you as well as your budget and purchase what you can afford at the time rather than later.
Even if you’re certain your income will increase in the next couple of years, you might encounter circumstances that increase other life expenses, for instance school and travel plans. Beware of these substantial costs and ensure your budget has room to purchase a townhouse.
Location
Residing in units in the center of the building is typically more affordable due to the absence of exposed external walls, which generate cheaper utility bills. However, those at the end of the building offer more privacy since you share one wall with your neighbor.
Therefore, establish the factor you consider more important. Ensure you also review this factor with your agent and examine various sites.
You want to ensure you choose the best and most secure location for your family. Furthermore, when choosing location, consider things like shopping centers and restaurants.
Taxes
Although a townhome might be a cheaper investment compared to a standalone property, beware that you could end up paying considerable taxes in that area.
Ensure you review this with your agent and that the charges don’t surpass what you’re willing to pay. It’s also important you assess the costs involved, for instance the mortgage and taxes to establish whether your budget can accommodate the costs.
Homeowners Associations (HOAs)
HOAs can change a neighborhood in a major way. If a community has communal areas such as a recreation center or park, you’ll find that they’re probably under the control and regulation of the HOA.
On the other hand, lawns are your responsibility and rooftop may be your concern as well. Under the wrong circumstances, they can generate high overhead costs. Be prepared for other add-on costs such as holiday parties and other community needs.
It’s also important you establish whether you’re willing to pay for the extra costs. In numerous townhouse associations, irrespective of the type of association ownership-for you’ll be responsible for meeting the payments for parking areas, maintaining private roads, and common spaces, or recreational amenities (for instance a pool or playground).
Beware that, if your association won’t handle maintenance issues, you don’t have similar remedies as a tenant. In particular, you can’t withhold payment of assessments or employ your maintenance contractors and then decrease evaluation payments to counteract your costs.
Privacy
Unlike a conventional home, a townhouse is joined to another unit, so don’t anticipate privacy levels to be similar.
Before going through with your plan, ensure you’re okay living in close proximity with neighbors. The benefit here is that in the event of emergency, the neighbor is close enough to offer assistance.
Final Thoughts
Purchasing a townhouse can be an excellent substitute to purchasing a single-family detached home. However, it’s important you understand what you’re getting into before making a final decision.
For more information on how to choose a townhome, contact us at Apartment Agents or leave a comment.