The Hottest Property On The Block

All hail the townhouse! 

With dark, boxy and low-quality apartments dominating new developments and freestanding homes out of reach of the average budget, townhouses have become the talk of the town.  

Acting as the ideal step between apartment living and the elusive freestanding family home, strata titled townhouses or duplexes attract a diversity of buyers, from downsizers who want something lower maintenance to young families wanting room to grow and have some outdoor space.

But are they a good investment?

There’s a long held belief in buyers that a Torrens Titled property is a much-better long-term investment than anything Strata titled. After all, owning the land on which the property stands outright sounds better than sharing the ownership with your neighbours, right? 

The answer isn’t always that simple. The quality of Strata schemes can change dramatically from one building to the next, and I've recently experienced some shockers and had to walk away! 

However, if the strata management is good and the property is excellent, it will always beat out a Torrens Titled home that’s dark, has a poor layout, or isn’t in a desirable location. The value isn’t only in the land but also in the property itself. 

A townhouse I recently bought for a client on Napoleon St in Rosebery showcases the best a townhouse has to offer. It has higher than average ceilings that create a sense of space, three decent-sized bedrooms with two and a half baths. The private outdoor space made it great for pet owners and young families, and two car spaces in a thriving city fringe suburb is a huge win.

Of course, there were nice-to-have features like wood floors, a modern kitchen and bathrooms, extra storage, two balconies and a study nook away from the main living, dining and kitchen areas for a bit of peace and quiet while you work.

As most townhouses are more recently built, they may have a flexible room which can be used as a bedroom on the ground floor, allowing those downsizers, who aren’t quite ready to go to an apartment yet, to live in the home longer without needing stairs. All in all, townhouses present a great opportunity for a diverse group of buyers. 

And therein lies the problem. 

Quality townhouses with high ceilings and parking spaces, like Napoleon St, are in high demand, with low supply. My theory is because developers get a higher return on cookie cutter bog standard apartments in higher density locations than the townhouses that everyone is crying out for… go figure… So, once you’ve landed on a townhouse being your next buy, nabbing one will take a strategy. 

In recent months buyer competition is fierce and once again, pre-market access or being the first person through the door is crucial; often makes the difference in winning or losing a property. It also pays to consider making an offer early on to avoid going to auction. 

You have to be prepared to move quickly. Not only do you need to have your finances in order, but you should also have a plan of action around your search and a thorough checklist to help you identify if a property will be right for you. Once you find a townhouse that ticks all your boxes, you’ll avoid wasting time and can pounce while it’s hot. 

If you come up with an informed offer with favourable terms that make sense for both buyer and vendor, you’ll have a better chance of securing the property than letting things play out at auction against the masses. 

If you need help finding a hot property, our team is on hand to help.