Full Resell

Are townhomes a good Real Estate investment?

I wanted to know if townhomes are a good real estate investment. I’ve heard mixed reviews from different sources. For instance, I’ve heard that in a bad market, these types of properties depreciate the most. I also heard that they are harder to resell and get the full value out of them. Does anyone have any experience with this?

IN GENERAL, townhomes do depreciate more than single family homes in a bad market…and, you typically do have more difficulty getting your money out of a townhome than you do a single family home.

The big problem with townhomes is that they often cost just as much as a single-family home…yet don’t offer anywhere near the amenities. With a townhome, you typically get little-to-no yard, you have to deal with at least one common wall, you’re forced to pay sometimes exhorbitant HOA fees, and you don’t usually own the ground that it sits on. So, on it’s face, a townhome really DOESN’T look like much of an investment.

However, that’s not the whole story. Really, (like everything else in real estate) alot of this depends on the location. For instance, if you’re talking about a townhome on Miami Beach, then it could be a huge money-maker and a great investment. However, a townhome in Grand Forks, North Dakota would be right up there with Enron and MCI WorldCom stock as a bad investment.

You Need to look at the specific real estate market that you’re considering investing in and ask yourself some of the questions that others here have mentioned….

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