Is it a good idea to invest in a townhouse?
A townhouse is a type of terraced housing with multiple floors. It shares one to two walls with adjacent houses but has its own entrance. In the suburban areas, you will find uniform townhouses built in a distinct community with its own homeowner association.
When buying a home in Palm Coast, Fl, you might wonder if it is a good idea to buy a townhouse or a different residential property. While a local real estate agent can help you learn about particular communities in detail and the current pricing of townhouses in those communities, it is certainly good to have an idea about the benefits and drawbacks of investing in townhouses.
Pros of Investing in Townhouses
- Easy maintenance
Most townhouses are part of an association called HOA, it is easy to get the maintenance work in the common areas done quickly. Besides, once you buy a townhouse in Palm Coast and rent it to tenants, you can always add the HOA fee to the rent. Doing this allows you to earn passive income on your investment. However, you must check the HOA guidelines if the townhouse that you want to buy is a part of an HOA. Not all Homeowners’ Associations allow owners to rent their homes.
- Prime location
Mostly, townhouses are located near downtown which makes it easy to commute to work and entertainment places. Besides, having a home in a famous location or nearby downtown also makes it a popular choice among tenants.
- Improved privacy and security
Townhouses offer great privacy as occupants get private entrance and many times, they also have a backyard. When a house is part of a community, it is also considered more secure because there are always people around which will make you and your loved ones or your tenants feel secure.
- Added Amenities
Many townhouses come with luxury amenities such as pools, a clubhouse, or a playground for the little ones. The fee to enjoy such amenities is usually included in the HOA fee. Still, you should ask about this explicitly.
- Relatively Cheaper
Townhouses are often cheaper than most single-family homes. Thus, they are more affordable and also put a lower financial risk when it comes to real estate investment. They usually fall within the median price range in the local market.
Cons of Investing in Townhouses
As with anything, investing in townhouses also comes with a few cons which you should consider before making the final move.
- Less Storage
Storage space in townhouses is often less, and they rarely come with attics or basements. So, if you are looking for a home with a large storage area, you should look for other options.
- High HOA Fees
If you plan to pay HOA fees yourself, you should reconsider your monthly budget in that area for comfortable living and savings. HOA fees are intended for outdoor and common area maintenance, and they can vary from $200 to $300. The more amenities in a community, the higher the HOA!
- Interior Costs
In addition to HOA fees, you will also be responsible to pay for the interior costs and repairs.
- Less Flexibility
HOAs come with stricter rules and regulations which make home modifications difficult. The types of improvements you can do in a townhouse depend on the HOA regulations.
So, are you ready to invest in a Palm Coast townhouse? Get in touch with a local real estate agent to find the best home-for-sale deals in Palm Coast, FL.