We constantly hear first home buyers are locked out of rising markets but what about units and townhouses. Units and townhouses are generally more affordable and they take less time to maintain when you’re young and time-poor. Developers also know that being close to the city and/or the suburb amenities is what everyone wants.
Currently, the market may seem quite scary from a first home buyer’s perspective. Constantly hearing the market has gone up and that prices are flying over reserve is distressing. However, units and townhouses offer fantastic opportunities for first home buyers.
First home buyer unit/townhouse benefits
Buying a unit or townhouse is a good first step because:
- Simply – more affordable.
- Often your first home is a place to eat, sleep, and dump your stuff. So, gardens and maintenance are not really fun things to do with your spare time.
- Units and townhouses are usually close to restaurants, cafes, transport and leisure – all highly desired.
- Less mortgage stress – lower mortgage happier life.
- Closer to family and places you enjoy. Often young people want to be closer to family, places they enjoy and work but their budget dictates that they move further away. Units and townhouses are often a lot closer to the desired people and locations.
- It allows a first-time buyer to have a forced savings plan. Saving is hard and getting a decent return is even harder so paying off a property that is increasing in value as well as taking spending temptation away is really helpful.
- Could be held as an investment long term. Many people use the equity to buy a house later so the first unit/townhouse may never need to be sold – great super plan.
When buying property, you always must think about if you needed to sell. This actually fine-tunes the must-have list. Units and townhouses need to stand out.
So, what makes a unit or townhouse stand out?
- By far the biggest selling feature for units is location. Units are deliberately located near transport, schools, shops, entertainment and parklands.
- Furnishings and decor in the space help buyers visualise their things in situ. Ensure that the unit is large enough for a family – playrooms that might turn into a teenage space. Look for a technology hub – everyone needs to be able to work from home. Pet friendly is also a huge drawcard for many people as are recreational facilities and parks because green space is highly valued.
- Return on investment is critical on low-priced units and townhouses. Consider the strata fees and examine the strata report thoroughly to ensure there are no costly issues in the immediate horizon. This is not the case on higher-priced properties as the more expensive the lower the return. The rule is the higher the property it is more likely to have a higher resale value, the higher the return the properties are slower to increase in price.
A unit or townhouse is a great first step and one that is not fully explored by many.