Pros and Cons Of Townhouses

Do you want to own a home but are not sure what type? Are you a busy professional, travel a lot, or just at a stage in life when you are seeking a low maintenance home? Are you not savvy at home repairs and maintenance?

As a licensed real estate agent these are the questions I ask people to help them determine what is the best home type to purchase. Answering “yes” to many or all of these is an indication that a townhouse is the best option for you.

This post will answer the question, “What is a townhouse?” Also, I will cover the pros and cons of buying a townhouse.

What Is A Townhouse?

This same section answers what is a townhome. Townhouse, town house, townhome, town home are all the same thing.

A townhouse is a home which shares a common wall with one or more other neighboring homes. The key difference between a townhouse and a house is the shared common wall. Additionally, more space may be shared.

Yes, you can buy a townhome and be an owner. Yes, townhouses do keep their value and do appreciate. And yes, there is a market for townhouses.

Some townhomes share just a wall with the neighbor. Think of two townhomes paired together. However, some townhomes may be in a row of other homes. In that situation you have multiple homes sharing the same walls on both sides and parts or all of the roof. Or, it may be a large building made of four units, though this design is less common.

Also, townhomes often have two floors, a main floor and an upper floor. This is not always true, but is becoming more true. Single story homes that are with shared common areas or structural parts or more commonly referred to as condominiums (condos) or patio homes.

Who Is Responsible For Maintenance Of Shared Areas Of The Townhome?

Maintenance of the shared areas is often defined in the covenants and restrictions of the development. Oftentimes, at the onset of development, there was an HOA (homeowner’s association) or a POA (property owner’s association). The covenants and restrictions layout who is responsible for what. This is then enforced by the HOA or POA. If the townhome does not have a POA or HOA, anything that needs enforced could be done so through legal action.

Sounding scary? Don’t let it be. Like anything else, if you are thinking about buying a townhome just read everything so you can make a fully informed decision.

In some very old developments there is no documentation whatsoever. In those situations, there is much legal guidance as to who is responsible for taking care of what. Most often, where there is no documentation, or no covenants and restrictions, each person is responsible for taking care of the parts that make up their home. So, if the roof is leaking on your unit, if you want the leak to stop, get up there or call someone and fix it.

Many more modern townhome developments get around this by having a well-managed HOA or POA. With that, you pay dues which are held in escrow to take care of predictable needed future maintenance and improvements. In many modern developments owners often have nearly no exterior maintenance to take care of.

Buying A Townhouse Pros And Cons

I will break this into two lists. First the pros and then the cons.

Pros Of Buying A Townhouse

1. Low to No Maintenance

Usually there is little to no routine exterior maintenance. This is things like mowing a yard. Often, exterior maintenance of the structure is even handled by a POA or HOA.

2. Location, Location, Location

Yeah, that old axiom is still true. But here, if you like the city life like being able to walk to stores, restaurants, and bars, consider a townhome. Townhomes are usually found inside a city as opposed to the outskirts or rural areas.

3. Lower Price

Townhouses often sell for a lower price than single family homes. This just boils down to supply and demand. There is often less demand for townhouses.

4. Lower Total Cost Of Ownership

Townhomes often have a lower total cost of ownership. Utility bills are often lower. There is no three acre yard to tend to. Insurance is often less. And, your transportation costs will likely be less if you are able to walk, run, or bike, or have a much shorter drive, to much of the things you need in your life.

Cons of Buying A Townhouse

1. Neighbors

Remember, a portion of your townhome will be shared with a neighbor. Most often, it is a common wall. Your neighbors will be close to you. Hopefully you have great ones.

2. Poor Organization

Older townhome developments may not have a POA or HOA that owners contribute to so maintenance can be completed in a timely manner. This can cause an owner to let their unit fall into disrepair which can affect your values. And, just be ugly to see each day. Note, this is NOT true with every townhome development.

3. Less Appreciation

Townhomes often appreciate at lower rates compared to single family homes in the same city. This is especially true in medium sized and smaller cities. This is just due to the size of the audience for this property type. It is mainly young professionals or older retirees.

4. Control

A strict HOA or POA may have rules and regulations you find to be too strict. Before buying your townhome just make sure to read the covenants and restrictions.

Conclusion

Think about the buying a townhouse pros and cons and decide if it is the right type of home for you. You can begin searching for townhouses for sale in Northwest Indiana right here at Quadwalls.com. You can also contact us and a member of the Quadwalls.com team will answer your questions. We can connect you with a leading agent in your area, too.