change course as long as you’re willing to put in the work!The world of residential property investment has seen some shifts in recent years, with more and more people flocking to townhouses as an alternative to traditional houses. There are several different reasons why townhouses have gained in popularity recently, especially in Eynesbury Estate, so before deciding whether or not to invest in this type of property, it’s important to be familiar with the ten main reasons why you should consider doing so.
They can be more affordable
Townhouses are a great investment because they can often be more affordable than other options. For example, some townhomes may cost less than the initial purchase price after being lived in for a few years.
These properties will also appreciate with time, as long as the area stays desirable and your home remains in good condition. Furthermore, the size of these homes is perfect for families that want to live near city centers but don’t have enough space to buy a larger home.
They tend to appreciate
Townhouses have tended to appreciate over the past several years. The median appreciation rate on townhouses is currently 2.6%. Some investors also like that they are more affordable than single-family houses, with the median price per square foot of $120.
Townhomes represent a good investment because they tend to appreciate and they’re more affordable than other property types.
They are less risky
One of the reasons why investing in townhouses is less risky than investing in single-family homes is because there are more potential renters. With more renters, you can have a better chance of finding someone to rent your property, which means that you will have a higher return on investment. In addition, townhomes tend to cost less per square foot and this lower cost can increase cash flow.
You don’t need as much cash to get started
Townhouses can be a great way to get started in real estate investing. One of the main reasons is that you don’t need as much cash to get started when compared to other types of property.
Whereas with a single-family home, you might need $150,000 or more to make an investment property purchase, with townhouses, you only need about half as much. For example, if you want to buy two townhouses at $250,000 each, then you would only need $250,000 in cash.
Management fees are typically lower
One of the biggest advantages to investing in townhouses is that the management fees are usually lower than what you would pay on a single-family home. While a townhouse may cost more on a per square foot basis, this is offset by the low monthly fee. Not only are these fees lower, but they also come with less responsibility and liability than owning an individual house or condo.
Townhomes have lower default rates than condos
Townhouse defaults are lower than condo defaults. The majority of townhome owners, who tend to be younger and less affluent than condo owners, have mortgages.
If a mortgage goes into default, the home is typically foreclosed on rather than sold off as is done with condos. That means the lender would keep the property and resell it instead of putting it back on the market.
Their value tends to hold up better during recessions
A big advantage of townhouses is that their values tend to retain their value better during recessions than single-family homes. They’re usually located near good schools, parks, and shopping centers.
Most townhomes have two units, so if one owner loses their job, the other is still able to cover the mortgage. The two or three floors of these homes provide more space than apartments and condos.
Location is important, but the location isn’t everything
Location is important, but the location isn’t everything. When you are considering an investment property, it is also important to look at the amenities and features of the neighborhood. A townhouse offers a suburban lifestyle in a downtown setting.
If you want to live close to work and not worry about snow days, then this is your best option. It is possible to find townhomes that offer short commutes to schools, entertainment venues, shopping centers, major roads, and highways.
If you want a home with a garden that has plenty of space for planting flowers or vegetables, then this might be perfect for you. It is easy enough to maintain your private backyard even when living close to others.
The other perk? Pets don’t require any yard space! There are plenty of dogs living happily in these homes who never go outside because their pet parents provide them with enough exercise by taking them on walks around the block every day!
Buying a townhouse means buying into the community
Townhomes are where neighbors know each other’s names, chat with one another on their front porches and watch out for one another’s children. It’s also a place to socialize and network with people who have similar interests. When you buy a townhome you’re investing in your future as well as that of your new community!
Renting out extra space is easier with a multi-family property
One of the benefits of townhouses is that they typically have more square footage than a single-family home, so you can rent out some of the excess space to help cover your mortgage. If you are an Airbnb host, think about how much more income you could generate by renting a single unit instead of multiple rooms.
For example, if you live in a two-bedroom townhouse and only use one bedroom as your primary residence, you could rent out the other bedroom to make extra money on nights or weekends when it’s not occupied.
Conclusion
Ultimately, townhouses have their advantages and disadvantages like any other type of property. They are a good investment if you understand the market, need to diversify your portfolio, or want to make money on a quick flip. However, they may not be right for you if you need space or have kids. The best way to find out is to do your research and decide what’s best for your specific situation. Remember that it’s never too late to
