Townhouses
- Thread starter IndexFund
- Start date
Without getting into the "which is better debate, Houses, Townhouses, Villas or Units??", I preferr to purchase Townhouses & Villas with a 30% or greater land component (thereby eliminating multi story units or high rise apartments), for several reasons.
The mains ones being (in no particular order) -
1/ lower maintenance & upkeep for the tenant
2/ lower purchase or entry level into a Higher capital growth suburb area
3/ rapidly growing marketplace (starting both now & into the future) wanting these type properties. This is due the largest group of people to ever be born (being the Babyboomers and Empty nesters) starting to come into their retirement years.
They will be wanting to downsize for lifestyle & economic reasons.
4/ greater tax advantages & tax effectiveness thus maximises cashflow.
5/ able to hold more individual properties spread across your portfolio - thereby minimising area over exposure risks by not holding all your eggs in only a few baskets, so to speak.
Hope this helps.
The mains ones being (in no particular order) -
1/ lower maintenance & upkeep for the tenant
2/ lower purchase or entry level into a Higher capital growth suburb area
3/ rapidly growing marketplace (starting both now & into the future) wanting these type properties. This is due the largest group of people to ever be born (being the Babyboomers and Empty nesters) starting to come into their retirement years.
They will be wanting to downsize for lifestyle & economic reasons.
4/ greater tax advantages & tax effectiveness thus maximises cashflow.
5/ able to hold more individual properties spread across your portfolio - thereby minimising area over exposure risks by not holding all your eggs in only a few baskets, so to speak.
Hope this helps.
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It depends a lot on location. I have a townhouse close to the beach and with the seachangers this has made the capital gain on this particular property more than the houses I own.
As Rixter stated there has been a change with the baby boomers/empty nesters coming into the market looking for townhouses in prime positions.
Body corp fees are a killer though plus being dictated to as to what you can do/cannot do with your own property. As a choice I would rather own a block of townhouses rather than buy one in a block.
Chris
As Rixter stated there has been a change with the baby boomers/empty nesters coming into the market looking for townhouses in prime positions.
Body corp fees are a killer though plus being dictated to as to what you can do/cannot do with your own property. As a choice I would rather own a block of townhouses rather than buy one in a block.
Chris
I think there has been a large acceptance of townhouse / villa living amongst the people! Especially when convenience takes a part.
Alot of oldies are cashing in on their equity in their home, and a downgrading to a townhouse / villa and even apartments are fairly common. This obviously just pushes this market further towards house prices, and when house prices get too close people jump the other way.
Alot of oldies are cashing in on their equity in their home, and a downgrading to a townhouse / villa and even apartments are fairly common. This obviously just pushes this market further towards house prices, and when house prices get too close people jump the other way.
The more boutique complexes with say; 4-6 units and single story would be an option.
In Melb in recent years I noticed a good number of these popping up, with a couple of 2-storey and a couple of single story townhouses in the one complex.
I'm sure other cap cities would be the same, and it would be worth taking note of the types of residents in them.
Hi gang,
Actually I've noticed at the higher end in particular there is increased activity by baby boombers buying into quality unit blocks where there is a lift. Due to limited supply of land in inner areas many townhouse are two story and that means stairs. Also the desire of baby boomers and even those older wanting to live a low/no maintenance lifestyle in inner locations close to amenities is become a bit of a frenzy.
Cheers - Gordon
Actually I've noticed at the higher end in particular there is increased activity by baby boombers buying into quality unit blocks where there is a lift. Due to limited supply of land in inner areas many townhouse are two story and that means stairs. Also the desire of baby boomers and even those older wanting to live a low/no maintenance lifestyle in inner locations close to amenities is become a bit of a frenzy.
Cheers - Gordon
Not all, depend on whether or not there are common areas. My PPOR is a townhouse with common areas and it has a small body corp fees, my IP is also a townhouse, but it's on its own title with no common area and no body corp fees.
