Investors, homeowners, and landlords usually have certain doubts regarding the type of property they're managing. Maintaining townhouses is completely different from taking care of a condo or apartments; therefore, you should understand everything that having a townhouse entails.
Townhouses are often beautiful properties, although many beginner investors or future homeowners don't know it. Read on, and find out all you need to know on the subject, including the benefits of owning this type of property!
If you're interested in investing in real estate, or if you already own properties or manage them, you might constantly wonder what is a townhouse, especially if you don't have much experience.
A townhouse is a single-family home that has multiple stories, but it has a specific characteristic: it's not a detached house. In other words, it's attached to another home, which is why people usually refer to them as being part of townhome communities.
Since townhouse living requires your clients to live beside other single-family homes, their experiences might be very unique. Additionally, you can usually find a townhouse community in large urban areas and major cities since it allows everyone to take advantage of more space.
Your clients might want to know what is a townhouse, but they might also wonder what exactly they own if they bought one. Even though it's a single-family home, it's attached to other ones, which could make things complicated.
A townhouse owner owns everything about the property as well as the outside of it, for example, the roof, the walls, the land around it (porch, front yard, and any other outdoor space.). Furthermore, being part of a townhome community means that the single-family must also cover homeowners' insurance.
In some cases, people have to be part of a homeowners association when they live in townhouse communities. They might also have to abide by specific aesthetic conditions, for example, they could have landscaping rules, several regulations for the colors they use for the outside of their home, and other duties like paying fees for shared areas (a laundry room, community pool, park, etc).
Real estate is a complicated business, especially when you own single-family homes and have to explain everything about it to your clients. Since they're not living in a detached home, they should have several things in mind, particularly to deal with future neighbors without any issues.
Condo Owners vs Townhome Owners
Sometimes, your clients might confuse townhouses with condominiums. However, condos typically are in complexes, which means you as the owner would own everything inside it but not on the outside, which would belong to the HOA (homeowners associations).
When you own a condo, HOA fees are usually more expensive because they cover maintenance and repairing of more things that all residents are sharing, for example, the exterior maintenance of the complex.
Even though HOA fees are more expensive for people who own condos, townhouses are more expensive to buy, so you should keep that in mind if you're interested in real estate investing.
Townhouses as Investments
Buying a single-family house is not an easy process, and you might wonder if purchasing detached homes would be a better idea. Overall, you should keep in mind that experts on the matter usually recommend buying townhouses.
If you want to be successful when you buy a single-family home, you should remember that it also depends on the location of your potential property. Thus, a conveniently-located townhouse might be a much better acquisition than a less-expensive one that's not on a great spot.
Townhouse living is many people's dream, especially if they live in big cities. As an investor or owner, you keeping the amenities in mind is also crucial since it allows you to decide if it's a good investment opportunity or not.
You can, for example, find out if the row houses have community amenities such as a community gym, swimming pools, tennis courts, a fitness center, a game room, or any other defining feature that would make them cost-effective.
At the same time, just because they're shared spaces doesn't mean they can't have key differences. In the end, it depends on each owner since you're the one who's responsible for guaranteeing that your townhouse looks individually owned - you should make your offer seem unique, especially if you want to have a smooth selling process.
Townhouse vs House
The key difference between a house and a townhouse is that house owners can modify anything from their property including the exterior. In other words, they can paint it the color they want, install a pool or other amenities, knock walls down, build more rooms, etc.
Townhouses, on the other hand, are always bound to the HOA and all the townhome living rules. Thus, if you want more freedom as an owner, a house might be a better idea.
If a townhome has several divisions and different apartments or condos, you could classify it as a townhouse-style apartment. Consequently, people living there might get the feeling of townhouse living, but they wouldn't get all the benefits.
Living in a single-family house that's attached to other homes is definitely not for everyone, and that's something you should keep in mind when buying a townhouse. Even though these properties can offer fantastic benefits and different amenities, there are other real estate investment options, and you must evaluate each one before deciding.
Overall, buying a townhouse is a great idea, which is why many homeowners choose it over a condo. It gives you various benefits you should keep in mind, so take a look at how your life could change after your purchase:
Less Work Involved
People who don't want to take care of specific things such as pest control, trash removal, landscaping, and security gate fees usually love living in a townhouse because they only need to pay for each HOA fee and the association takes care of most things.
Thus, instead of worrying about mowing your lawn, pulling weeds, and taking care of pests, you could enjoy your weekends doing anything else you want. The HOA usually keeps an eye on the exterior upkeep of your place, but it's not nearly as much work as you'd have if you bought a house.
Most townhouses include incredible amenities, even if you're living in a smaller space. Therefore, even though you have shared walls and your home shows a uniform look that's not very different from others, you can enjoy many different things.
More amenities usually mean more fun since you can choose between pools, tennis courts, recreational facilities, and much more. Consequently, it might be very convenient for you, especially if you have children or if you love spending time outside your home.
Value for Your Money
Compared to other possible property investments, purchasing a townhouse might be a much better option. In fact, buying a house in the same neighborhood can be much more expensive, so that's something you may want to keep in mind, especially if you want to make the best choices for your financial situation.
Furthermore, townhouse owners usually pay fewer taxes for their properties, and that's also crucial for you as an investor. Lastly, the buying process itself is not very different from purchasing a detached house, so you don't have to learn any additional information.
Townhouses share walls and amenities, and they generally operate due to the HOA's regulations. If you buy one, you or your clients can live in a comfortable community full of people who might have similar interests, especially when it comes to spending leisure time in common areas.
Since living in a townhouse means you're sharing a wall with the person next to you, it's hard not to get a sense of community. You're probably going to learn your neighbors' names because you're very near them, and that's essential if you want to feel like you're part of a neighborhood.
Unlike condos, apartments, and detached houses, townhouses are usually located in beautiful places. If you're an investor or a landlord, that might be immensely convenient for many reasons.
On the one hand, you could sell the townhouse for a good price due to its location. Additionally, if you own it, you could live in it and enjoy all the benefits for yourself.
Everyone interested in properties knows that the home's location is one of the most important things to consider when buying it, along with other factors. Fortunately, most townhomes are in beautiful spots.
Townhouses involve shared walls with neighborhoods, but they're a wonderful investment opportunity if you want to buy a property. They offer many benefits, and if you already own one, now you understand why it's an incredible advantage.