A tall, thin construction is almost always a defining characteristic of townhouses. They provide a kind of compromise between an apartment and a single-family home, typically sharing at least one wall with another unit in the neighbourhood but frequently including features seen in houses, such as a yard, private entrance and garage.
Owners of townhouses benefit greatly from the neighbourhood in which they are located, as well as from the privacy and independence that come with owning a home.
Is it wise to buy a townhouse in Calgary?
Many individuals ponder whether investing in a Calgary townhome is wise compared to other types of real estate in the city. Townhomes often cost less per square foot than single-family homes, but they do have a similar tendency to keep onto their value and increase in value over time as single-family homes do. Your townhome will almost probably cost less to purchase, and you won't have to worry about it being more difficult to sell than a house would be in the future.
Townhouses (also known as townhouses) are a hybrid of condominiums and detached single-family homes that combine the best features of both. Townhouses are multilevel homes connected to another home or homes by a common wall. They can vary greatly in size and structure. Some people have their own tiny patios or yards.
Although they are not precisely the same, townhouses and condominiums are similar in many ways. The level of ownership is one of the key distinctions. In contrast to condo owners, owners of townhomes often own both the inside of the residence and the outer property it is built upon, including the yard (if there is one). Like condo owners, owners of townhomes may or may not pay HOA dues for services like garbage collection and common area maintenance.
Benefits and Drawbacks of townhouses
Townhouses can have both positive and negative characteristics, just like any other style of housing.
Benefits
1. Townhomes are often more affordable than single-family homes of comparable size in the same neighbourhood.
2. Enhanced ownership In contrast to condos, townhouses typically give you control over both the exterior and interior of the building. Despite the fact that a HOA may impose specific aesthetic standards for the exterior, there is typically more latitude for changing appearances than there would be in the case of a condo.
3. Minimal maintenance : Townhomes are often simpler to maintain than freestanding homes because they are smaller in size and sit on smaller properties. Additionally, you frequently aren't accountable for grounds care and outside property maintenance.
Townhouses frequently share amenities with condos, including outdoor walking paths, swimming pools, clubhouses, and other features that residents can utilise.
Drawbacks:
1. Townhomes frequently have monthly HOA dues that go towards maintaining the exterior, the grounds, and shared amenities like walkways and lawns. According to Cromwell Simmons, while it would be practical for someone looking for a minimal maintenance home, the cost might be high and may even fluctuate over time. Additionally, a HOA may have guidelines that limit how you can use your property and how it can be modified.
2. Lack of privacy: Due to the fact that townhouses are usually attached units, there may be less privacy than there would be in a single-family detached home. Cromwell Simmons cites the possibility that you can hear your neighbours as one example. Also take notice of the neighbouring homes to a townhome. When it comes time to sell your property, it will look poorly maintained if things are neglected.
3. Less room: Compared to a freestanding house, townhouses are often significantly smaller and narrower. Additionally, they have numerous stories, which might be challenging for those who have mobility concerns.
Buying a townhouse: six helpful hints
1. Work with a knowledgeable real estate agent
When buying a house, real estate agents can serve as your champion and advisor. Your real estate agent may give you advice on the average cost of townhouses in your neighbourhood, as well as market data, conduct negotiations on your behalf, and complete all the paperwork required to close on a house.
Asking up front about their commission fee can help you prepare for the fact that agents are compensated on commission for their services. However, in most cases, the seller and not the buyer is responsible for paying the real estate commission.
2. Understand the HOA dues and what they pay for.
Examine the homeowner's association (if there is one), the dues it levies, and what is covered in detail before deciding on a townhouse. You should think about the monthly costs while making your final decision. Before making a purchase, Cromwell Simmons suggests carefully reading the development's HOA agreements, rules, regulations, and most recently available financial statements. "A buyer can make their purchase contract contingent upon reviewing this information to the buyer's satisfaction," the representative explains. So, there are no unpleasant surprises regarding the property's fees or limits.
3. Get ready for potential bidding wars
Since townhouses are more cheap than traditional detached homes, first-time homeowners are choosing them more frequently.
Due to the high demand for starter houses in the current market, a bidding war may break out. The best course of action in this situation is to decide on your upper limit right away and stick to it. Yes, you might be outbid, but remember that compared to single-family houses, condo and townhouse prices typically decline the quickest and most during a downturn in the housing market.
4. Compare mortgage interest rates.
Comparing mortgage rates with at least three different lenders is crucial. A low rate can result in thousands of dollars in savings over the course of a loan.
Remember that people with the best credit and lowest debt-to-income ratios receive the most advantageous rates.
5. Get a finance preapproval.
Before looking for a property, you should always get preapproved for a mortgage, advises Kurt Johansson, senior loan officer at Shelter Lending Services. Preapproval comes with a variety of benefits. It helps you compete with other buyers and provides you a better picture of what you can afford. Additionally, it might assist you in determining whether a certain townhome's HOA dues are too exorbitant. When applying for financing, the purchase price includes HOA dues.
6. Have your house inspected
Townhomes and detached single-family houses also benefit from regular home inspections. Even if the HOA takes care of the exterior, make sure the inspection covers both the inside and the outside, advises Cromwell Simmons. If any outside issues are discovered, make sure they are fixed before moving forward with the sale. She claims that the HOA can frequently take care of any outside issues. If not, the seller is in charge of the repairs.