Are Townhomes a Good Investment?

Are Townhomes a Good Investment?

When it’s time to purchase a new home, we often think of a house, an apartment, or a condo. However, there is another option often overlooked: the townhouse. Townhouses are great for first-time investors or those looking to live outside the city, yet still close to their neighbors.

These living spaces are very popular for single families, new families, or home buyers who are looking to invest on a budget. For many, a townhouse can be a great investment depending on the neighborhood. Before investing in a townhome, it’s essential to know the ins and outs of what exactly you’re investing in.

What is a Townhouse?

A townhouse or townhome is a multi-floor home that shares at least one wall with an adjacent property. A townhouse comes with all the attributes as a home does; your own entryway, driveway, basement, garage, and backyard. Investing in a townhouse means you will be part of the Homeowners Association (HOA), and own everything from the exterior walls to the grass on your front lawn.

The Benefits of Investing in a Townhome

Investing in a townhouse is a great way to branch out if you want experience in single-family homes without the high maintenance of a house. Below are some things you’ll benefit from.

Affordable Rates

Depending on the location, townhomes in Las Vegas (or elsewhere) are a more affordable option than a house because of the shared wall. While some townhouses can be more expensive than a condo or an apartment, it is less expensive to build properties that are attached together, making it the perfect investment for those who are looking to be first-time homeowners. 

If you’re looking to invest in a townhome for an income property instead of residential living, it’s a smart way to purchase a second home without having to come up with a huge down payment.

Easier Maintenance

The smaller the house, the less the maintenance. Investing in a townhome as a first-time homeowner will help you determine how much maintenance you have the patience for. With a house, you are responsible for your exterior surfaces, front yard, back yard, fencing, driving, etc.

When you invest in a townhouse, you are generally only responsible for your home’s interior because your HOA will take care of other upkeep.

Being in a Community

Townhouses might include community amenities such as a gym, a clubhouse, and a pool. Since you share a wall with your neighbor, you may have an easier time getting to know the people around you. These communal-style living amenities paired with close proximity to your neighbors will give you a sense of community while also providing some privacy.

The Cons of Investing in a Townhome

Everything comes with a few stipulations, and while investing in a townhome is a great opportunity for many, there are a few things you should consider.

The HOA Regulations

Before investing in a townhome, you should look through the rules and regulations of that property. For example, townhomes in Vu at MacDonald Highlands have a monthly HOA fee that residents must pay.

On top of HOAs charging an additional monthly fee, they also put restrictions into place about what you can and can’t do with your property, like what color to paint the walls or the type of windows to install. Make sure you factor these in when investing in a townhome.

More Noise and Less Space

Since you’re sharing a wall with your neighbor, this easily translates to less space and living on top of one another. Additionally, it’s likely you will have more noise than you would living in a detached home. Before investing in a townhouse, be sure to introduce yourself to your potential neighbors to get a sense of how they live.

Townhouses May Be a Smart Investment

Compared to the benefits, the drawbacks are pretty minimal when it comes to investing in a townhome. It is up to the investors and the buyers to consider what works best for them, their budget, and location when looking at properties.

It’s important to have a real estate agent to help you through the process, as there are a lot of things to consider. Choosing the right townhome can be challenging, but it does not have to be.

Additional Reading

Post a Comment