Is a Townhouse a Good Investment?

by Carlisle Homes

Wondering whether buying a townhouse is a good investment for you? Our helpful guide provides all the information you need to decide.

Is buying a townhouse a good investment? If your current apartment is bursting at the seams but your budget doesn’t stretch to a freestanding house, if you’re looking for a reliable rental return, or you want the ease and convenience of townhome living in a great location, it certainly can be.

Read on to learn more – and to discover how Carlisle Homes is setting new standards for luxury townhouse living.

Are townhouses a good investment in Australia?

Depending on your investment goals and lifestyle needs, a townhouse can be a savvy buy. With housing prices across the country on the rise, townhouses are an appealing middle-ground solution between standalone houses and apartments.

For first-time buyers on a budget, they can be a great way to break into the country’s tough housing market. And being bigger than an apartment, a townhouse will give you more space to stretch out and more flexible living options.

Townhouses can also be a good option for small families and downsizing retirees seeking a comfortable, reasonably priced home.

They are also appealing to investors; townhouses in Australia have shown a history of steady capital appreciation, particularly in sought-after areas. With their contemporary features and relatively limited supply in high-demand areas, it’s safe to predict that the value of townhouses will continue to grow in the long-term.

Will a townhouse suit my lifestyle?

Townhouses, such as those offered by Carlisle Homes, boast modern designs and amenities that cater to a contemporary lifestyle. Many townhouse developments include shared recreational facilities, such as gardens, gyms and swimming pools, adding to the overall appeal.

With a focus on low-maintenance living, they can be ideal for busy professionals and those who travel frequently and want a lock-and-leave lifestyle, making them highly desirable for both buyers and renters.

Location plus

Where a property is located plays a significant role in its potential as an investment. Townhouses are often located in prime areas, offering proximity to amenities, such as schools, public transport, shops and business districts.

Townhouses with easy access to conveniences are in constant demand, which is a plus for investors looking for a stable rental return.

Investment property townhouse vs house

So, is a house or townhouse a better investment? A standalone house generally sits on a bigger block, offers more internal space and privacy, a bigger backyard, and will often appreciate better than a townhouse or apartment. But they typically require a bigger initial investment, putting them out of reach of buyers on a tight budget.

A townhouse comes with a lower price tag, making it accessible to a wider range of investors, particularly first-timers. In addition, townhouses are often located in sought-after estates, with contemporary features, good amenities and proximity to transport.

Diversify your portfolio

If you are an investor who already owns traditional properties, such as freestanding houses or apartments, adding townhouses to the mix can spread risk and potentially enhance returns. This diversification allows you to more comfortably weather any market fluctuations.

Rental returns on a townhouse

Whether you’re buying a house, townhouse or apartment, your rental return will be influenced by several factors, including location, proximity to amenities such as schools, transport and shops, as well as the layout, style and age of your property.  So it’s essential to assess the local rental market dynamics to make an informed decision before you buy.

Carlisle townhouses: a new level of luxury

At Carlisle Homes, we’ve redefined townhouse living with our luxurious, detached townhomes at the exclusive Life Estate in Point Cook. Here, there’s no compromising on space, light or amenities, no shared walls, no restrictive floorplans, and no strata to deal with – all our townhouses are superior quality and undergo stringent build quality checks before we hand over the keys. 

We offer a range of different townhouse designs with varying floor plans and facade choices, so you can get all the space you need and a layout that works for your lifestyle, and a look that expresses your personal style.

Our spacious 31- to 34-square townhouses have four bedrooms, two bathrooms, powder room, generous living space, and a gourmet kitchen with a butler’s pantry. Outside, there’s a covered alfresco area for entertaining, an expansive backyard, driveway and landscaping. 

Townhouse living has never looked so good!