Thinking of buying a Richmond townhouse?
A detached home is a better choice compared to a townhouse. When you are working on a budget, and you have only around $500,000 to buy a home in Richmond BC, you are better of buying a detached home. Below are some of the reasons why buying a detached home will be a better option to you:
1) You own your land - this is the single most important reason for buying a detached home as compared to a townhouse. The lot that your home is situated on belong to you and you only, and not a part of a "unit entitlement" if your home is a townhome. Your title allows you the sole discretion how you want to add or renovate your home, and not having to be subjected to "strata rules and regulations" if your home is a townhouse.
2) Your lot has a better appreciation value - new land cannot be created, and all new homes have to be either further away from the city center or built on existing land that are either redeveloped or rezoned for development. Such lands are always more expensive to be acquired and any new homes being built, are at market values. In Richmond's history, detached homes enjoyed the highest price appreciation as compared to townhouses and condos.
3) Burden of strata fees - Each month the strata fee that owners of townhouses have to pay say in the $200 to $300 range are equivalent to carrying mortgage loans of $40,000 to $70,000. These extra payments only go up in value every year as strata fees only go up and never come down. So, effectively when you buy a townhouse of $500,000 value, you are paying a value of $550,000 for living in a townhouse.
4) Dealing with strata rules / regulations - some home owners are having problems dealing with the rules and regulations of living in a strata complex. Many home owners cited the "strata rules / regulations" as the reason they are selling their townhouses. You have no control over what you want to do outside the confine of your home. There are more complaints and problems dealing with neighbours and the strata corporation.
5) Changes in rules - when new rules are adopted and approved by the strata corporation, the resale value of your home may be affected. Rental restrictions may be implemented after you bought into a strata townhouse complex. This may not be to your liking as you are restricted in your future plan to keep the home and rent it out. You have to deal with the uncertainty that such changes may affect your futuere plan.
So, if you can avoid buying into a townhouse complex, you are better of buying your own detached home. Here are some Richmond homes at $500,000 range that are selling at around the same price of townhouses. You can budget to spend some money and make the changes to the home to make it suitable for you and your family.
If you need help in looking for a suitable home, you can contact me for a discussion.
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