House in Watsonia or Townhouse unit in Preston?

Happy New Year everyone!
I need your help on deciding if we should sell/ downsize.
Family: me and my son, college graduate.
House, we currently live in: 3br 40 yo, in good condition, would need about 50k to renovate kitchen, bathroom.

Main reason for selling is hard to look after outside areas and long time commute to work ( 1hr20 min one way)

Townhouse (currently IP) is a unit at the back of a block of 5. Double storey, 120 sqm, yard 40 sqm, garage on title but shared with a neighbour (no separation wall between garages and one double gate) built in 2013. Located in South Preston, Thornbury border (close to sgl fleet), commute to work will be 45 min.

If our house is sold at good/median price, we can live in the townhouse mortgage free.

If the townhouse is sold, we still need to pay mortgage 6 to 7 years.

Should we sell the house or keep it? I can't keep both properties. CG of Preston units is next to nothing. In Watsonia it was very moderate growth, much slower than anywhere else; living mortgage free allows to save. The house is solid built, can stand for another 40 years easy, the townhouse - not so sure as anything newly built seems flimsy. I hope to separate garages later on (build a wall and install 2 single gates)
Sorry for a long post.
Thanks for your inputs.