A townhouse is a multi-level building designed to mimic a traditional house that is owned on a strata title. This means you own the dwelling but share the land with other people.
Townhouses often have a higher rental yield compared to standalone houses because of their relative affordability and overall desirability from renters. Furthermore, investing in a townhouse can help buyers acquire a property in a prime location, which can attract quality tenants such as young families and couples.
Townhouse/Villa – These residences share common walls like a semi-detached house, but don't have common land. They share common walls and can be part of units or a bigger complex. The difference between a townhouse and a villa is a townhouse tends to be 2 storeys while a villa is always going to be on a single level.
A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not free-standing, so “the land on which it sits” is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two or three stories tall.
Pros of buying a townhouse
Townhouses usually have two stories, sometimes three, making them roomier than most apartments. Because of this, they're ideal for families who need more space than what they can get in an apartment but can't afford a house. They're also good for downsizers, and they normally allow pets.
The origins of the word townhouse go back to early England, where the term referred to a dwelling a family (usually royalty) kept “in town” (meaning London) when their primary residence was in the country.
A townhouse is a multi-level building designed to mimic a traditional house that is owned on a strata title. This means you own the dwelling but share the land with other people.
Strata fees are mandatory contributions paid by owners with properties located in a unit, villa, townhouse or duplex complex. The amount paid can vary from building to building.
Resale value: townhouses usually experience less capital growth than a house, roughly the same as an apartment.
Do townhouses have good resale value? No, townhouses do not usually have a good resale value. You will be more likely to make more money if you rent out your townhouse. And selling your townhouse will be more difficult since they do not appreciate in value.
Townhouses don't appreciate like single-family homes. They tend to decrease in value faster and take longer to recover. Townhomes generally retain their value in the long term, but their worth has more volatility than single-family homes.
While you'll get the maintenance benefits of high-rise condos, townhouses also offer the benefit of much more space and flexibility than a condo suite. Indoors, you'll get a multi-level home with multiple, reasonably-sized bedrooms, full bathrooms, a living room, kitchen, and, potentially, a basement.
The separation wall needs to be started at the foundation level and must go on all the way to the roof sheathing to form a parapet. The separation layer is normally constructed of two layers of 1-inch thick gypsum board (drywall), rather than the 3/8-inch or 1/2-inch drywall used for surface walls.
A duplex is a single structure with a single owner, featuring two residences (either side by side or upstairs and downstairs) with private entrances. A townhouse, on the other hand, features several dwellings that share walls and each unit is individually owned.
A townhouse, also called a townhome, is a type of house that has multiple floors and shares at least one of its walls with other residences. These buildings are often tall, thin and attached to other townhomes in a long row. They're most popular in urban and suburban areas.
Disadvantages of Strata Property
High Strata Fees, more common in developments with many amenities or older buildings that require more maintenance and repairs. Disagreements with other Owners, which may require dispute resolution. More responsibilities, unless you hire a Strata Manager.
Pros and cons of strata and Torrens titled properties
You are solely responsible for the cost of maintenance and the work required. No restrictions on pets, hanging washing, BBQs, parking, etc (subject to local council restrictions). Torrens properties usually offer greater privacy and less noise disturbance.
Depending on the age and condition of the building, some schemes will require a substantial capital expenditure over a period of time to ensure the building remains code compliant and safe for residents and visitors. Older buildings will require more maintenance and repairs, which may result in higher strata fees.
Unlike a condo, townhome owners typically own both the interior of the home and the exterior land it sits on, including the yard (if there is one). Townhome owners may pay HOA fees for things like maintenance of common areas and trash pickup, like condo owners do, but not necessarily.
In Australia and New Zealand, land is predominantly held under the Torrens Title system, although remnants of General Law Title (deeds of conveyance) still remain. All land in the Australian Capital Territory is leasehold (effectively Torrens freehold) and much of the Northern Territory is held under Crown lease.
Generally speaking, it's likely that you own the property underneath and around your house. Most property ownership law is based on the Latin doctrine, “For whoever owns the soil, it is theirs up to heaven and down to hell.” There can be exceptions, though.
This type of home is usually smaller than traditional single-family homes, too. While standalone homes can sit close to one another, note that a house isn't considered a townhouse unless it sits side by side with another unit.
The main difference between townhouses vs. single-family homes is the proximity to neighboring houses. Townhouses share the walls with other houses, while single-family houses are separated from the other houses. Townhouses are built as a series of housing units with the exterior walls attached to another house.
The main difference between apartments and townhouses is size. Townhouses tend to be larger—often with two or more bedrooms. They are typically on more than one level, unlike apartments, which are rarely on more than one level.