Is Buying a Townhome a Good Investment? | EG Home
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Is Buying a Townhome a Good Investment?

When you’re thinking about your next home, there’s more to consider than square feet, the number of bedrooms, and the style of the kitchen cabinets. You need a home that supports your lifestyle—that has what you want, where you want it, and without the things you don’t want. You also need a home that fits your budget and is a good investment. Consider buying a townhome

Buying a townhouse

“Should I Buy a Townhouse?”

Townhomes are the second-most common type of home purchased, according to the National Association of Realtors. But are they a good investment? It depends on what you’re looking for.

Townhomes are a great first investment for first-time home buyers. They are usually located in convenient areas in big cities or nearby suburbs and need fewer maintenance expenses. Most importantly, townhomes are more affordable than single-family homes.

The affordability of townhomes is hard to beat. Since they are typically smaller than traditional homes, they cost less to build. Because townhomes are often built near one another, developers can save on costs such as land acquisition and infrastructure, which are passed on to the buyer. 

The lower price tags and reduced square footage also lead to savings when it comes to property taxes. Owners of a townhouse usually pay less in property taxes when compared to a stand-alone home.

Townhomes can be the perfect choice if you can’t afford a single-family home or want to own your home without the responsibility of maintaining a large lot. But before you buy a townhome, consider how you want to live and what kind of amenities you want:

  • Do you have little kids? A play room might be a must.
  • Are you a fitness buff? A community gym or a nearby park or walking trail is a plus.
  • Is outdoor space a plus? Some townhomes have decks, patios and yards, some don’t.

While you’re searching, don’t overlook the community’s HOA fees, rules and restrictions. Review them carefully to make sure they won’t negatively impact your lifestyle. For example, the HOA might restrict lawn and holiday decorations, enforce a noise ordinance, limit pet size and quantity, or not allow visible RVs or campers on your property. Take note of whether the fees have historically risen. Fees are usually lower in larger communities that share common costs (road maintenance and snow removal expenses) with many other homeowners. While your dues generally cover regular services and maintenance, a special assessment is a one-time fee to cover the expense of a major repair or improvement. If you don’t pay the fees or assessments, the HOA could place a lien on your property or even foreclose on your townhome.

If you are considering buying a townhouse, seeking a mortgage loan will be similar to one for a single-family home. Lenders will typically want to see your monthly income and outstanding debt to determine your debt-to-income ratio and see how much of a mortgage you can afford. If the townhome has HOA fees, those would be included in the mortgage calculations. Just as with a single-family home, it can make sense to get pre-approved for a dollar amount before townhouse shopping, save money for a down payment and closing costs, and so forth.

Should I buy a townhome

Benefits & Advantages

Architecturally, townhomes are attached homes, meaning they are connected on one or both sides with another home creating a row or terrace of homes. They are typically two to three stories with taller, narrower structural characteristics. Most townhomes have the main living areas on the lower floors and bedrooms on the upper floors. They are a great choice for many reasons. Here are a few:

  1. Flexible Use of Space

Townhomes are known for their efficient use of space, offering multi-level layouts that maximize living areas while minimizing maintenance requirements. This aspect appeals to busy professionals, young families, and downsizers, providing the perfect balance between comfort and practicality. They offer privacy with nicely sized bedrooms tucked away from the main living areas, plus living spaces, full kitchens, and basements or lower levels. Unlike apartments, townhouses offer room for kids to play or space for a home office.

  1. Cost Effective

The smaller, compact sizes of townhomes make them more affordable to own than single-family homes. Because they’re attached, there’s less land used and little overhead needed to maintain them. This includes the cost of heating and cooling (especially for interior townhomes) because there are no windows on the sides to let hot or cold air escape easily. The lower cost (and smaller mortgage) is one reason townhomes are great for first-time home buyers who want the advantages of homeownership but have a tight budget.

  1. Low-Maintenance Living

One of the primary draws of townhome living is the reduced maintenance burden compared to single-family homes. With exterior upkeep typically handled by the homeowners’ association (HOA), residents can focus on enjoying their homes and community amenities without worrying about yard work or exterior repairs. Save the time and money spent on raking leaves and lawn maintenance and enjoy free weekends for whatever you want.

  1. A Sense of Security & Community 

Townhome communities foster a strong sense of community, encouraging interaction among neighbors while respecting individual privacy. Shared amenities such as green space, walking trails, or recreational facilities create opportunities for socializing and forming lasting bonds. These close bonds mean neighbors can rely on each other to feel safe and confident there’s someone to watch their property if you go away.

  1. Great Location

Many townhomes in Connecticut, including The Reserve at Stonebridge Crossing, are strategically located, offering easy access to shopping, dining, entertainment, and employment opportunities. This urban connectivity appeals to professionals seeking convenience and a vibrant lifestyle without sacrificing the comforts of home.

Benefits of townhouses

Connect with EG Home for More Info on Our Communities

Whether you’re a young professional seeking a smart investment, a family desiring a low-maintenance lifestyle, or an empty nester looking for community connections, The Reserve at Stonebridge Crossing caters to diverse lifestyles with grace and functionality. The Reserve at Stonebridge Crossing is an award-winning community with solar panels that help reduce homeowner association fees! Explore the seamless blend of comfort, convenience, and community, and contact us to learn more about our townhomes for sale in CT.


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