Are Townhomes A Good Buy?
Townhomes are one real estate investment opportunity that you may come across. Whether or not they are a good deal depends on a few factors. Here are some things to talk over with your real estate agent.
How Much Rent Can I Charge Per Bedroom?
If you are planning on renting out the townhome after purchase, the first thing you may want to know is how much you can charge per bedroom. Your townhome may already have a "going rate" based on what other property in the complex is going for. Make sure that this rate is compatible with what you are paying on your mortgage to make it an affordable property to finance.
How Does the Complex Rate?
Your complex may also already come with a reputation that can affect how well you can rent out your townhome. Make sure that the complex already has an excellent rating that will help you attract tenants.
What Amenities Are Available?
Amenities can be a great selling point for tenants. Things like swimming pools and basketball courts can make up for a lack of space that may come with some smaller townhomes. Check on the amenities and their condition when you are thinking of buying a townhome.
What Are the HOA Fees?
It's also a good idea to know what the homeowner's association fees are going to be like. These fees can pay for important tasks, like lawn and pool upkeep. But they are sometimes a significant monthly fee, so be sure that you consider them when you're calculating the monthly costs of owning the property.
How Is the Community Doing?
You'll want to understand how the community or region is doing economically; it can give you some indicator of whether the property value will go up or down in the years to come. And it can also help you understand how stable your tenant base will be; if tenants have many job opportunities in the area, there may be a lower rate of turnover or vacancies. There are many ways to get a sense of the economic forecast, including consulting a local real estate agent and speaking with a member of the chamber of commerce.
Deciding whether townhomes are a viable purchase is a complicated process, since many factors affect how attractive a potential piece of property is. It helps to have a knowledgeable real estate agent on your side to show you all of your local property options and help you choose one that meets your needs best.