Townhouses and Villas
Investment Townhouse and Villa Management
A further added advantage for a purchaser of an investment townhouse or villa is that of onsite managers overseeing the complex.
As they must legally own real estate within the development, onsite managers have a financially vested interest in the correct management and operation of the complex, providing further assurance your investment will be managed with the utmost professionalism.
What are townhouses and villas, and why invest in them?
Townhouse and villa developments are residential complexes which can range in size from four to four hundred plus dwellings.
The main differences between stand-alone houses, and townhouses or villas, is the latter are in a development, usually a gated community, and share adjoining walls and are strata or community-titled.
This means that you own your parcel of land and your dwelling. You also maintain a share in the common areas and amenities. Villas are on a single level while townhouses are two-storied.
A more affordable option than stand-alone homes, townhouses and villas are low maintenance, and typically feature a private courtyard and grassed area to enjoy without having to worry about too much maintenance.
For many buyers, townhouses and villas offer the best of both worlds, and, as they are popular with tenants, investment townhouses can yield excellent rental returns.
The common areas may include car parks, gardens and many recreational facilities such as pools, gymnasiums, saunas, spas, barbeque, and communal lounge areas. The body corporate is responsible for insuring, managing and maintaining the common areas, and owners pay a strata levy to cover these activities.
Townhouses and Villas strata fees are set by the body corporate, and the cost is largely dependant on the maintenance of the grounds and facilities. Therefore, pools, tennis courts, playgrounds, extensive landscaping etc, while being attractive, can escalate the costs of holding a property.
These properties appeal to young couples and families, as well as middle-aged couples looking to downsize without sacrificing their living space and spare rooms. Better yet, the versatile split-level design of townhouses allows occupants to entertain or relax downstairs while the kids sleep or play upstairs.
Many townhouses and villas also come with a sense of community living, and give occupiers the space to enjoy their home while being close to well-maintained facilities including parks, cafes and community gardens.
Townhouses and villas are cost-effective, affordable and sustainable alternatives to stand-alone houses. Usually located within an area where land is at a premium, and house and land packages either aren't available or aren't affordable, they can often be a relatively affordable way to enter the property market.
We recommend buying in a development that has a point of difference and attracts increasing demand, such as on a golf-course or near a beach.
Townhouse developments located in the middle of suburbia that sit alongside similar complexes, will not experience the same growth as developments situated in desirable locations.
A small selection of investment townhouses and villas from our current availability
Please note the website is being updated and the samples of Townhouses will be added shortly
This is a small sample of our currently available properties.
Assuming a criteria of combined income of $120,000, single income of $100,000, or equity in your own home, these properties demonstrate the approximate benefits to purchase and hold. Some of our list may be purchased as a single contract, therefore suitable for SMSF. Please contact us for details.
$136 Cashflow Positive per week
Dual Occupancy
- Profile id 10002
41km north of Brisbane CBD
$458,000
4+1 Bed, 2+1 Bath, 1+1 Car
$150 Cashflow Positive per week
Dual Occupancy
- Profile id 10001
35km south of Brisbane CBD
$525,000
3 + 2 Bed, 2 + 1 Bath, 2 + 1 Car
$12,000 below Valuation
Apartment
- 1 Contract
Brisbane
$440,000
2 Bed, 2 Bed, 1 Car
When to buy an investment townhouse or villa
Townhouses and villas typically begin selling "off-plan." This contractual arrangement means they are purchased, and finance becomes unconditional before the building has been completed, and frequently before the construction has even begun.
Developers usually require "pre-sales" to obtain funding for the construction of Townhouse developments. If this is a large complex, the development may be released and constructed in stages. Each stage will be on a different community title, but will be umbrella'd under the main Development title.
The first release of properties usually sells before public listing, and is made available through a few select Agents at a discounted price. Sometimes it may not be the entire stock-list made available, but a few of each design.
Usually there is then a public release, and prices would have increased.
Once funding is confirmed, the remaining units within the stage are made available for sale but at a higher cost than the initial tranche of properties.
The increase of prices can occur once, or several times during construction of a development.
At the end of construction, a few properties may remain for sale at which time it costs the developer to hold them as well as incurring the costs of maintaining a display unit. The developer may reduce the sale price for these remaining properties to obtain quick sales. These townhouses are often the least desirable in the complex; otherwise, they would have sold sooner.
The best time to buy townhouses and villas is at the start or end of construction.
The risk when buying apartments early in construction is that the lender only has them valued after they are built. Finance becomes unconditional when agreeing to the contract. If the valuation is low, the purchaser has to fund the shortfall in lending.
The risk when buying townhouses and villas towards the end of construction is that all the best properties may be gone.
TIPP are here to help
We work with boutique developers as well as with large developers, which means we can access investment townhouses and villas in a wide range of locations, including designer developments close to the heart of CBDs.
We specialise in finding investment townhouses and villas to suit all budgets and investment objectives. With access to properties across Brisbane, the Sunshine Coast and Gold Coast, we can source a wide range of townhouses and villas. So, if you’re looking for a quality investment property, contact us today.
