• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Real Estate Townhomes...

Discussion in 'Real Estate Investing' started by Walley, Oct 3, 2007.

  1. Walley
    Offline

    Walley New Contributor Read Millionaire Fastlane

    Messages:
    130
    Likes Received:
    1
    Joined:
    Oct 1, 2007
    Rep Bank:
    $83
    From your experiences....Are they a good investment? Do the value grow like regular homes? What is the vacancy rate on it?
     
  2. ProInvestor
    Offline

    ProInvestor New Contributor

    Messages:
    82
    Likes Received:
    10
    Joined:
    Aug 15, 2007
    Location:
    Australia
    Rep Bank:
    $65
    Townhouses (or Townhomes) are very similar to normal houses.

    There are a few exceptions though. Usually they are built in city / dense population areas due to land volume being less than house. Usually they are desired less by families (2/2), unless in a city area (which usually have childless couples or only child households).

    They are good to avoid land tax issues (as they take up smaller land plots).
    Finance is usually the same as a regular house, with perhaps a slight decrease in maintenance issues (because of no garden).
    Growth depends really on the target market - is more white collar growing in your area?

    Of course in a more urban/rural area they will probably cost less than a house and rent out for a bit less than a house.

    Rgds.
    ProInvestor
     
  3. Walley
    Offline

    Walley New Contributor Read Millionaire Fastlane

    Messages:
    130
    Likes Received:
    1
    Joined:
    Oct 1, 2007
    Rep Bank:
    $83
    Thanks. It's in a military populated area.
     
  4. yellowpad
    Offline

    yellowpad PARKED

    Messages:
    30
    Likes Received:
    0
    Joined:
    Oct 3, 2007
    Location:
    Orange County, CA
    Rep Bank:
    $60
    If you intent to buy and rent, you might want to consider the rental market. Use that to determine your monthly payment and......eventually your purchase price. It doesn't make sense to buy a house with payment that exceeds the rental market.
     
  5. S928
    Offline

    S928 Contributor

    Messages:
    162
    Likes Received:
    22
    Joined:
    Aug 7, 2007
    Rep Bank:
    $113
    Personally, I'm not a fan of townhomes because they tend to have slower appreciation rates and they also tend to have costly association fees every month.

    If you can afford to buy a single family or a multi-unit, go that route instead. While owning is usually better than renting, you want to get the most for your money and townhomes tend to have certain restrictions that are annoying. Also, some associations only allow owner-occupancy, so check alll restrictions first. In regards to vacancies, that truly depends on the area.

    Some people tend to like townhomes and condos, however, I believe they should be the last alternative. My first live-in purchase was a townhome and while I have no regrets of the purchase, I've pledge to never buy another townhome as my main residence.

    To find out if a townhome is a good investment, consider the pros, cons, local market and purchase price.
     
  6. tchandy
    Offline

    tchandy Contributor Read Millionaire Fastlane

    Messages:
    460
    Likes Received:
    94
    Joined:
    Aug 16, 2007
    Location:
    Kansas, for now
    Rep Bank:
    $125
    A few thing to consider about military towns are:
    - do the service members deploy? if so how often? length of normal deployments for service members?
    - what is the area like? are there other people who may want to rent other than the military? this allows more people to rent instead of solely relying on military personnel.
    - are other homes being built in the area?
    - are there other comparable homes for rent in the area?

    Tom
     
  7. yveskleinsky
    Offline

    yveskleinsky Bronze Contributor Speedway Pass

    Messages:
    2,233
    Likes Received:
    489
    Joined:
    Jul 26, 2007
    Rep Bank:
    $1,743
    Where are you located?

    ...Military towns can be great investment wise. I don't care for townhomes either- generally the only benefit is that that they cost less to get into (at least on the surface). Post some numbers here and we can help walk you through it. ...Good practice! :)
     
  8. Walley
    Offline

    Walley New Contributor Read Millionaire Fastlane

    Messages:
    130
    Likes Received:
    1
    Joined:
    Oct 1, 2007
    Rep Bank:
    $83
    Thanks for the replies. I've always thought it was good being in a military town because people come and go...so their are always to customers.
     
  9. andviv
    Offline

    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    5,411
    Likes Received:
    2,172
    Joined:
    Jul 27, 2007
    Gender:
    Male
    Location:
    Washington DC
    Rep Bank:
    $3,421
    Talk to the people in the base that handle the rentals. Ask them what they need and they will tell you (for example they can say they need 3/2s in the next few months, so now you know the type of properties they have in demand). Probably you can tell them you have a property for rental and give them information so they can call you when they need a property for somebody moving to that base.
     
  10. Walley
    Offline

    Walley New Contributor Read Millionaire Fastlane

    Messages:
    130
    Likes Received:
    1
    Joined:
    Oct 1, 2007
    Rep Bank:
    $83
    Thanks
     
  11. andviv
    Offline

    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    5,411
    Likes Received:
    2,172
    Joined:
    Jul 27, 2007
    Gender:
    Male
    Location:
    Washington DC
    Rep Bank:
    $3,421
    Walley, I'm curious if you did follow up and the progress of this one.
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page