Seeking advice about a townhouse

Hi all,

I have found a nice 3-bedroom townhouse in inner city of Sydney (<5km), but I have a couple of important questions before proceeding with its purchase.

I'm not a renovating/rebuilding type of person. This will be my primary place of residence with potentially renting it out in a few years; I don't intend to sell it in the forseeable future.

The questions:
1. The asking price is $2M. Even though it has a decent internal total area size (multi-storey), the land on the title is only 70m2. Is that too small? How much does the land size matter for a town house, and given the circumstances I explained above (live and rent out, not intending to sell in forseeable future)?

2. The backyard is not a part of the title (one of the reasons for the small land size), it belongs to the strata; but the lot owner has exclusive usage rights. Does this matter? Is this something common and minor, or is it a no-no?

Is really appreciate your insights. Thanks in advance.

Kevin

 

Thanks for the answer, much appreciated.

The place was built in 1985 and has 18 town houses in the complex. They all seem to be in a good shape.

I was recently looking at townhouses in Waverton (which is almost 5k from CBD) and they all had around 110m2 on the title, that's why I was surprised.
Somehow paying $2M for 70m2 of land seems excessive...or am I looking at this the wrong way?

 

More about comparables. If all similar properties have the same internals, then thats just how the suburb is for that sort of property.

Though have a think about what you might need in a few years. Can you borrow to upgrade? Stamp duty would be 100k plus.

You probably dont have a work from home option but if you have a family you might want something bigger?

 

The backyard size is ~30-35m2, hard to say as it is not in the title.

The total area is around 170m2 which is decent, and it will be possible to work from home (my wife will be).

Thanks for the suggestion, we need to do some research about the other properties in the area (Glebe) and see how they compare.

 

What are the size of the bedrooms? I am finding that for the 3 bedroom townhouses, the second and third bedrooms are often too small.

 

The master bedroom generous, but the other two bedrooms are quite small. Both are 7.5m2, not counting the built-in robes.

 

1) The total internal size is more important. That is small... but not uncommon for the area.
2) It is good and bad - you don't have it on title (it'd boost the sqm) but equally it means you're not paying for it in your strata ownership %.