Townhomes...

[Walley]

From your experiences....Are they a good investment? Do the value grow like regular homes? What is the vacancy rate on it?

 

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[ProInvestor]

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

 

[Walley]

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

Thanks. It's in a military populated area.

 

[yellowpad]

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.

 

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[S928]

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.

 

[tchandy]

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

 

[yveskleinsky]

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!

 

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[Walley]

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.

 

[andviv]

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.

 

[Walley]

Thanks

 

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[andviv]

Walley, I'm curious if you did follow up and the progress of this one.