Townhome – Choosing the right type of home is not easy, whether you are an investor or a prospective buyer looking for their first home. Buying a house or even building a house are great ways to invest money or create your own home. There are many options when it comes to choosing a house. From
Characteristics of townhomes: Residential area, direct neighbors and architecture
Young families and couples, as well as anyone in the family planning process, are attracted to townhomes in the same way. Not because they are particularly modern and cool. On the contrary, terraced houses have acquired a somewhat dusty image over the years. But the cliché that terraced houses are only for squares is not at all true.
Due to its space-saving design, the housing form has a huge advantage, because often you can get them even in large cities still relatively close to the city center. Often you don’t even know that you are dealing with a terraced house, because the image that we have been given is wrong. Row houses can be found in Paris London, New York Berlin and all other metropolises.
The simple reason for this is that terraced houses are built side by side without leaving space between each unit, thus they demand little plot space and even in urban areas often come with a front garden or proper garden.
You want to buy or build a house, but don’t know which one is right for you? Then take a look at our guide to house types from A – Z! Here you will find all house types, from bungalow to apartment building!
Space and room layout: Several floors, many rooms & space for children
A characteristic of terraced houses are the two floors over which the living environment extends. If you’re lucky, your townhouse may even have a basement and garden. Often in terraced houses, the living areas such as the kitchen and living room are located on the lower level, while bedrooms and bathrooms are upstairs.
Space of course depends entirely on the size of the house, but as we mentioned in the previous section, terraced houses are usually designed to accommodate a small family. So you can assume at least two bedrooms.
Advantages & disadvantages of a terraced house: neighbourhood, ancillary costs and price
Deciding on a new home can be difficult and involves many considerations, which should of course be made on a personal basis. So that you have an idea of what you can expect from a terraced house and no nasty surprises await you in the end, we have already put together a few advantages and disadvantages for you.
Advantages: Costs, construction time, ancillary costs
The space-saving construction method and the small plot of land required ensure that terraced houses are inexpensive and easier to finance for many. This is also reflected in the construction costs. In addition, ancillary costs are in the lower range, especially for terraced houses that are in the middle of the row of houses, because in a way you warm each other by heating.
- Favourable purchase price
- Low construction costs
- Low ancillary costs
Cons: Disturbing neighbors?, sales & more
Especially the middle houses bring are less popular, because they bring a few disadvantages that deter many. However, they don’t have to be, because the avoidable disadvantages have the same origin as some of the advantages. Unfortunately, however, the houses must be reckoned with a low resale value, which makes them less suitable as an investment property, but increases the chances of a cheap home.
- Direct house wall to neighbours
- Low resale price
- Limited daylight, if applicable
Tip. Save taxes on real estate: buy, rent or sell? Ideal investment.
Important aspects when building a terraced house: What you should pay attention to
A row house is usually built to live in just one and rent out the rest of the houses. However, from time to time there are offers for properties in a row of houses. If you are lucky enough to get hold of such a plot, there are a few advantages that come with it. You are not free to build and the basic concept for the house is mostly in place, but with luck you can add a few little touches.
You have much more say in the layout of the house and you can adapt your home to your own needs.
Neighbourhood and living environment: check & thorough examination of the situation
It is worthwhile to find out about other buyers and builders before building and to talk to them a little. On the one hand, you can exchange experiences, on the other hand, you can make arrangements about employed construction companies and possibly you can even save money by booking together.
In addition, it is advantageous to make acquaintance with the neighbors beforehand, in order to get to know the environment a little better. As we have already mentioned in the previous, the neighborhood and the close living on each other is often a factor that can negatively affect the housing happiness. Through exchange, this can not be completely avoided, but it is beneficial to know your neighborhood.
Build or buy: Which is more worthwhile?
In the search for the perfect living solution, different options open up and you are quickly faced with the big question: build or buy? What has more advantages and do I actually get away cheaper with a variant? We have tried to gather important aspects for you.
- Build or buy a prefabricated house? – Advantages & disadvantages at a glance
Terraced houses: purchase or new construction?
Especially in the case of terraced houses, it is quite easy to answer which is more worthwhile. It makes sense to buy terraced houses instead of building them completely new. Unless you want to build the row of houses in order to rent them out afterwards.
However, building is associated with a lot of responsibility. Especially if you have neither experience in construction nor in renting it is not advisable, because you carry a high risk. Vacancies can be expensive and you try to avoid them if possible.
Other living environments: New construction with more freedom, but also higher risks
As soon as you move away from the house form terraced house, the situation already looks a little different. Because here a construction can be quite worthwhile. Often the gain is not necessarily financial, but rather comes from the fact that you gain freedoms that a house purchase does not offer. At the same time, as a builder, you also take on more responsibility.
New buildings are often more expensive than buying a house. However, it all depends on how old the house you buy is and what features it has. When you buy a house, the seller often wants to make a profit on the sale, logically. Before you decide to buy a house, make sure you know the average price and the value of the equipment.
Viewing appointment: tips for viewing and saving money
The first viewing appointment is an important step when buying or renting a property. Here you get the chance to identify defects and if you are lucky, you can even ask the owners about the property. It is especially interesting if they have lived in the house and can give information about service charges and the like. Here, however, a bit of common sense is also required, because of course the sellers want to put the living environment in a particularly positive light. So keep in mind to examine everything with a particularly critical eye.
Apart from that, the impression you leave on sellers and possibly estate agents is very relevant. Because the chances are high that you are not the only prospective buyer or the own prospective buyer, but even more people visit the property. Making a good impression on those selling is paramount to snagging that dream home. Be prepared, organised and possibly bring the first documents that are required.
Additionally, you should focus on a neat exterior. If you are particularly interested in dealing with the house, there is the possibility that you already try to explore the neighborhood a bit to get an idea of the residents, because you should give the impression to fit into the area.
Offer price vs. selling price: buy real estate cheaply
You’re looking for the perfect property and have a good idea of the appreciation in a particular neighborhood. You also feel like you and your family are a perfect fit for the neighborhood. However, the house prices are a bit higher than what you had in mind? We’ll tell you why it’s still worth arranging viewings.
The reason is quite simple. As we mentioned earlier, sellers are naturally interested in making a profit and, just like you potentially will later on, want to get the most out of the property. It’s true that asking prices are assessed primarily on the basis of the property’s features and location.
Price Negotiation: Buying & Selling a Home – Negotiating and Setting Boundaries
However, it can often be assumed that the asking price is higher than the selling price. Especially in the case of architect-designed houses, it often happens that the houses have quite a high asking price due to the work and time spent in the design.
Then, when it comes to negotiating the sale price, it pays to come in not only below the asking price, but also below the price you’re willing to pay. After all, it is a negotiation and this approach is not uncommon when buying real estate.
If you’re looking for more detailed information on how to determine the asking and selling price, check it out here. We’ve already summarised some pointers for you:
Viewing real estate: Bringing children? Criteria & Co.
Especially terraced houses are known for offering a family living environment. The question of whether or not children should come along to view a home is therefore omnipresent. Overall, viewing a home without children is a bit more relaxed, but in some neighborhoods, bringing children with you has an advantage over others.
It is important here, however, that parents make sure that the child behaves appropriately. For children, there is hardly anything more boring than house tours and since mom and dad are unfortunately busy, you have to take care of variety yourself. This can be problematic, so be prepared for your child’s boredom and bring something to keep them occupied.
More about buying real estate: advantages and disadvantages, financing and more
Buying your first home is a huge step, but it can also quickly become a financial burden. To avoid this, it is worthwhile to carry out extensive financial planning in advance, so that you do not regret your decision later.
We also go into more detail about the advantages and disadvantages of buying a home, buying a house and renting a house, so that it is easier for you to assess your personal situation and make a well-considered decision.