The Perks of Buying a Townhouse
Latest trends are demonstrating that buying a townhouse is becoming an increasingly popular avenue for homebuyers and investors in Sydney, with townhouses on the Lower North Shore and the outer suburbs being much sought after.
In Australia, townhouses accounted for 12.7% of resident homes (2016 Census), up from 9.9% (2011 census). The recent NSW state government has also made new concessions for developers to build more boutique townhouses on the urban city fringe.
“Low-rise medium-density housing is the missing part of the NSW housing stock between traditional free-standing homes and strata-titled apartments,” the NSW Planning and Housing Minister, Anthony Roberts, said.
“With the growing and ageing population in NSW, there is a need for a greater variety of houses to suit the range of needs and lifestyles, including growing families and empty nesters,” Mr Roberts said.
The experts at Colliers International Residential expand further on the Minister of Planning’s findings by expanding the pool of prospective buyers to include:
- First Home Buyers/ Mum & Dad Investors – who are seeking and can’t afford that dream house and tend to be transient, near infrastructure, be well-connected to the city and are willing to sacrifice the big house and backyard to do this. These buyers are normally searching properties in Sydney’s West or Outer ring, including Sutherland and The Hills district.
- Mature Downsizers/Young Families – usually from affluent neighbourhoods, want to stay connected to their area and be close to their family and friends. They are willing to sacrifice the large home to stay in the area they like and know. These buyers look for properties in Sydney’s inner ring suburbs/micro markets.
The Appeal of Buying a Townhouse
- Value for Money
Many developers and builders now aim to build townhouses with affordability in mind while also making the most of the land on which the developments sits on.
This “affordable convenience” is why townhouses have a mass appeal that reflects the budgets and requirements for many buyers, from first homebuyers to young families.
Another plus, is that modern-day townhouses often make the most of the land value and aspects by designing the property to have as much space and natural light as possible with a high degree of inclusions, such as a designer kitchen, finishes and appliances, as part of the package.
There is no need to renovate or upgrade any part of the development – it has been tastefully done to make your property feel like home from get go.
- Good Location
Townhouses can often be a relatively affordable way to enter the property market without having to sacrifice on your location goals and/or lifestyle choices.
According to a recent study by the Domain Property Group, town home projects are becoming increasingly popular in Sydney’s:
- Lower North Shore: Artarmon, Pymble and North Sydney.
- Outer Suburbs: Sutherland/The Hills district
- Inner West: Glebe, Annandale and Newtown
“We have definitely seen a shift in people’s perceptions of town-house living,” says David Chittenden, Director at Colliers International Residential in Sydney. “People buying town homes nowadays come from truly diverse backgrounds with higher expectations,’ adds David.
This is further highlighted in the Centre for Urban Transitions study, which surveyed 2,000 Sydney, and Melbourne households in established middle-ring suburbs.
When asked, “What type of dwelling would you want to live in?” nearly 60% of residents in both cities favoured a detached house and yard. This is down from 90% in the early 1990s. So, in the space of one generation, attitudes have shifted significantly toward embracing higher-density living.
However, living arrangements extend beyond the dwelling. They also include the neighbourhood and the wider suburban context.
Responses revealed that when location was combined with housing type, this significantly increased preference for medium-density housing when located in established suburbs with good public transport and access to jobs and services. In both Sydney and Melbourne, 46% favoured this.
- Save Money & Capital Growth
Demand for townhouses has often outstripped supply and this is set to continue with neighbourhood pushback against medium to high-density living. This means existing and new townhouse owners can expect greater capital growth.
Buying a townhouse off the plan provides you with plenty of time to plan your move and save money in one simplified purchase process – with a 10% deposit is required upfront, and the rest paid upon completion.
This is one of the reasons why buying a townhouse also makes for a smart investment.
- Low Maintenance Living
Not everyone wants to spend all weekend on maintenance around the home, and this is a big part of the appeal of townhouse living.
You can enjoy a home with two, three or four bedrooms and an outdoor area, without spending your free time tending to a large yard or having to clean the pool.
Townhomes are efficient, require little maintenance but the inclusion of an outdoor courtyard, or a communal entertainment area, ensures you can still entertain, have a small garden to entertain or provide the kids with a secure space to play.
Now, who wouldn’t enjoy fewer chores in their life?
‘We are currently seeing two trends around townhouses. In Sydney’s Western suburbs the market has been dominated by first homebuyers and young families,’ says David Chittenden, Director at Colliers International Residential in Sydney.
“Closer to the City, we are seeing professional executives who don’t wish compromise on their way of living and/or seeing a more mature, sophisticated market of downsizers looking for a new home since the children have flown the coup,’ adds David.
“Buying a townhouse is a smart move as buyers don’t have to wait two or three years before they can move in,’ suggests David. This is worth considering if looking to buy an off the plan apartment and comparing between the two.
With more designer and boutique townhouse developments on the build across Sydney, speak to an expert at Colliers International Residential to weigh up the advantages and disadvantages on your next property purchase.
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