It depends. Here’s what you need to know
If you’ve decided to move to Southwest Florida, you have made a wise decision. In addition to having perhaps the nicest year-round weather in the U.S., the area is home to many great amenities along with a lot of things to do.
The question then, is which type of home do you want to buy? In recent years, townhomes have become popular with buyers, especially those purchasing their first homes. This is due to a number of reasons, including affordability, features like a pool or tennis courts, and a homeowner’s association (HOA) that takes care of things like routine maintenance and landscaping.
However, if you’re prioritizing your residence as an investment and want its value to go up as much and as quickly as possible, a townhome may not always be the best choice. Single-family homes can appreciate more for a few reasons, such as:
Supply and demand
Just like a lot of things, real estate values are based on what’s available and what people are buying. Because several townhomes can be built on a parcel of land that one single-family home would occupy, there are usually more townhomes available. This means that their prices can grow more slowly or, on occasion, plateau, while fewer single-family homes may drive prices up.
In many cases, the value of a single-family home will go up even if the owners don’t do anything to it. However, the right improvements and enhancements, such as a new roof or siding, can immediately add thousands of dollars to its value. With a townhome, the options you have for altering the exterior are very limited, and if you want to do any type of renovation, you’ll need approval from your HOA.
Land is key
When it comes to the value of real estate, often the land is as or more important than the property sitting on it. If a single-family home is on a few acres, depending upon where it is located or what’s happening in the neighborhood, that acreage could end up being worth a bundle to a developer. Because townhomes usually come with a tiny patch of land, it has less bearing on its value.
Don’t get us wrong – townhomes do appreciate in Southwest Florida, often greatly. And the convenience and amenities in the area’s best-managed communities make them appealing to a wide range of buyers. But if you’re primarily buying a home for a project investment that you can renovate to add value, it is best to go with a single-family home.
To figure out which is your best option, get in touch with Dante Disabato. He will gladly talk to you about your situation and give you his expert recommendations. You can call us at 239-537-5351 or fill out our online contact form.