Townhouse 1 bed+1 study vs unit 2 bed - future value

Discussion in 'What to buy' started by Howler, 20th Aug, 2020.

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  1. Howler

    Howler Active Member

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    Hypothetically...

    Comparing a townhouse with 1 bed (large) + 1 study (small bedroom) vs a unit of 2 bedrooms of equal size (medium, e.g 3x3), both in equivalent locations (< 10km from capital city CBD), which would perform better in the medium to long term (5+ years)?

    Would a prospective buyer of a townhouse (presumably a childless couple or couple with a kid) overlook the smaller room in favour of the other features a townhouse offers?

    Or would the unit with equal bedrooms perform better? The unit might appeal more to an O/O renting a room, or an investor...? But more units on the market...

    But which demographic is likely to drive up prices? The family?

    Considering family sizes are shrinking, 1 bed units are becoming more popular...
     
  2. fl360

    fl360 Well-Known Member

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    1 bed is not suitable for families with kids. some banks have restrictions on LVR for studio / 1 br units.

    in theory, townhouse should have more value, because
    1. more shared land size
    2. at least a tiny private yard at the back, to air dry something. pretending they own a house.
    3. less chance of opal / mascot towers risk.
     
  3. craigc

    craigc Well-Known Member

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    Sounds like NSW definition but generally would say Villa Unit > Townhouse > Apartment all due to land component attached.
    All being equal villa unit would have advantage of single story and also likely have more land component than the townhouse.
    Apartment last given smallest land component and hypothetical was all are same size and location.
     
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  4. Jockosaurus

    Jockosaurus Well-Known Member

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    The general rule is townhouses > units due to greater land value as suggested elsewhere, but I can't imagine who would want a 1 bed townhouse. News to me that it's even a thing. A 2 bed unit would appeal to far more buyers, so bear that in mind.