Townhouse build vs Single Dwelling

There was a time- not too long ago- when the single dwelling house was the default choice for buyers everywhere—families, especially.

But times change with the seasons, and the last decade has seen a shift in buyer behaviours as demographics change, and with it, their priorities.

The townhouse has emerged as a real threat to the enduring popularity of the single dwelling. If you are wondering which is the best choice for you, this article breaks down their respective pros and cons.

Townhouse compared to single dwelling: definitions

Townhouses are multiple dwellings under one roof that share a wall.

Single dwellings are, well, as the name suggests- single dwellings, be it in a detached or semi-detached property.

Now we have the basics out of the way, how do they stack up?

Townhouse pros and cons

The plot and build of a townhouse may be more expensive than a single house, but with several dwellings on just one plot of land, they work out significantly cheaper than two houses. And they provide multiple incomes from a single asset.

They are typically built near amenities and transport links, so the location can be a huge draw for investors and renters alike. Upkeep is cheaper than houses too; another attraction for potential renters.

However, capital growth is typically smaller than that of single dwellings.

Pro's

• cheaper than buying two houses: two rental incomes from one asset
• locations are popular with investors and renters
• come with modern amenities
• social benefits to townhouse living, but with a decent level of privacy too

Con's

• less space than a single dwelling (usually)
• multi-levels can be an issue with the elderly or less mobile
• typically less capital growth than single dwellings

Single dwelling pros and cons

Single dwellings have been the go-to for families (especially young ones) for years. And it's easy to see why.

They are usually in the suburbs, spacious, with garden space for the kids and (relative) privacy.

However, this space and privacy does come at a cost as land rates, utilities, insurance, and maintenance is higher than in townhouses.

Pros

• more space
• more privacy
• often easier to finance
• better capital growth potential

Cons

• more expensive to buy- costs to live in popular areas can be hefty
• more expensive to maintain
• less potential rental yield than a townhouse

The verdict

Which property is best for you will depend upon your particular circumstances and priorities.

If you are looking at it as an investment, then it boils down to whether you are prioritising capital growth (which favours single dwellings) or rental yield (which favours townhouses).

If you are looking to live in the property yourself, you will want to factor in things like the location you want for you (and your family, if you have one) and- lest we forget!- your budget.

We hope this guide has helped clear up the differences and distinctions between the two and helped move you one step further along the journey to finding your dream home!