What Is a Townhome? 4 Reasons Townhouses Make Good Investments
Posted by Dave Kotler on Wednesday, May 3rd, 2023 at 3:11pm.
Townhome communities provide options for those who want to own individual living space but may not want the responsibilities accompanying expansive yards or landscaping. Some consider such a community a hybrid housing type, but contemporary townhomes can also replicate past centuries' historic rowhouses built in posh neighbourhoods. Considering a townhome as your first property? Keep reading to discover what defines a townhome and why you should consider buying one below.
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What, Exactly, Is a Townhome?
Townhomes differ from single-family properties and condos in numerous fundemantal ways. Some townhouses may be part of a condominium community, but they are typically narrow, multi-storey urban dwellings with street-level entrances rather than units in multi-storey buildings.
Townhomes have private entrances, but they may share one or more walls with neighbouring dwelling units, or they might be in clusters that resemble duplexes, tri-plexes, or "foursquare buildings." They are often two or three-storey homes but have less square footage on smaller lots than standard single-family homes.
Additionally, modern townhomes are invariably in a planned development that an association governs. Townhome owners pay dues to the association, and there may be strict rules about what is and is not allowed. The best townhome communities may also have shared facilities, such as a clubhouse, pool, or sports courts designated for the private use of residents. In such a development, there may also be common landscaped areas and dedicated streets, all maintained by the governing association.
Townhomes are not to be confused with condo units in high-rise buildings. Each townhome is individually owned, with title to the land it is built upon.
Many townhouses boast compact entrance courts or front porches, small rear patios or fenced yards, and individual garages. Owners bear full responsibility for interior and exterior upkeep, maintenance, and repair of their dwelling units.
What Are the Different Types of Townhomes?
Townhomes can be found in various architectural styles and can differ in layouts, sizes, and features. In addition to traditional townhomes, learning about the following styles will help you narrow down your search and find the perfect property.
Stacked townhomes are multi-level units that share a common wall with one or more neighbouring units. Unlike traditional townhomes, stacked townhomes are typically built in vertical stacks, with each unit occupying a different level. Stacked townhomes can offer a more affordable option for buyers who want the benefits of townhome living but are looking for a smaller, more compact unit.
Bungalow townhomes are single-level units that are often designed for seniors or retirees. They offer the convenience of one-level living, with all essential amenities on the main floor. Depending on the design, bungalow townhomes can be standalone or attached to other units.
Brownstone townhomes are typically found in older, historic neighbourhoods and are characterized by their elegant, classic architecture. They feature multiple floors with high ceilings, large windows, and ornate mouldings. Brownstone townhomes are highly sought after by buyers who want to live in a charming, character-filled home with plenty of history and charm.
Townhomes Offer More Privacy Than a Condo
If there is one common feature of both townhomes and condos, it's a membership in a governing association requiring monthly dues, with the possibility that these costs can increase to cover unanticipated expenses. A board of directors typically manages associations, including paid managers and volunteer staff or committee members. Decisions of the association apply equally to all owners, and non-payment of dues can result in a lien on the property.
Typically, condos and townhomes share at least one common wall with a neighbour, but townhome owners usually will not have neighbours above or below their unit. Significant advantages of townhome ownership include access to outdoor space, a private patio, balcony, or fenced yard, and individual land ownership.
Townhome developments may have restrictions regarding the exterior appearance, such as limiting an owner's ability to make architectural alterations or repaint the siding, complete roof repairs, or add unique landscape elements. In the case of a townhome development, exterior maintenance and repair expenses may be the joint responsibility of the individual owner and the association, but such is not always the case.
Townhome Owners Have Fewer Responsibilities Than Single-Family Homeowners
If an owner's rights are somewhat restricted in a townhome community, an owner also has fewer responsibilities than a resident of a single-family detached home. Townhomes in older communities can be especially appealing, with desirable interior finishes, tall trees, charming gardens, and more space than newer construction. However, older developments are more likely to have higher association fees or potential for substantial maintenance and repair expenditures due to aging systems. When considering a townhouse purchase, weigh the price of utilities and insurance against potential additional costs of updates and repairs, along with required association dues and future assessments.
Enjoy Interior & Exterior Flexibility
Because townhomes are typically more affordable than detached single-family dwellings, particularly in urban areas, they can be especially appealing for first-time homebuyers, requiring a lower down payment and a more manageable mortgage. In some cases, rowhouses or historic townhomes with no additional amenities are not part of a community association and don't require payment of monthly fees.
Owners of such townhomes may enjoy the freedom to update and remodel such units to meet their specific needs. Although some cities have a rigorous review and permit process that governs historic districts, those restrictions typically apply only to exterior renovation. Owners can revamp interior spaces to their liking and often remove walls, modernize kitchens, and update heating and cooling systems. Before planning such work, however, it's wise to secure binding estimates or bids to make sure work can be completed within a set budget.
Take Advantage of the Amenities
A townhouse in a newly developed community can be a way to gain an amenity-rich lifestyle at a reasonable cost and contributes to the appeal of townhouse living. The price of townhomes can be lower than comparably sized detached homes. Even with the association fees, they might be great when buyers factor in the pool, common landscaping, clubhouse, guest parking, and the community's shared features. Of course, these are only advantageous if owners use the facilities.
Consider Townhomes During the Search For Your Dream Property
The choice of housing is one that a potential buyer should carefully consider. What is essential to understand is that no single type of dwelling will meet every potential buyer's requirements. However, in today's hot real estate market, the best option might be to buy a property with the greatest potential for lifestyle enjoyment, housing stability, and future financial gain. That may very well be a townhome.
Dave Kotler