Would love to hear your thoughts. I am currently house-hunting (for my PPOR) and would love some thoughts on the house vs townhouse debate generally, as well as in my specific circumstances. I have found both a house and a villa (Villa is an Australianism for single level townhouse in a complex) which I like. Both are the same distance from the CBD (7kms) but in different suburbs. Both have similar proximity to other activities I do on a regular basis and friends.
Villa - 2x1, $350k, would rent for $300-$350 a week, difficult to tell as a lot of this stock available so while it "should" fetch the higher price as it's been beautifully renovated (no expenses spared absolutely stunning), there are so many similar units available in this suburb you might need to price low to ensure no vacancies. Small well maintained complex with a pool and reasonable strata fees. Suburb will benefit from future light rail project (if the Govt ever gets their s**t together). Suburb is very suburban but still able to walk to neccessities, it has a small shopping mall nearby, recreation centre, lots of parks etc. Bus route into town. Villa is in direct proximity of a large university which should assume a large tenant demand, however the second bedroom is very small limiting it's market somewhat. There is a lot of this style of housing stock available in this suburb.
House - 3x1 basic budget renovation, very livable but not amazing, small block (no development potential). $430K would rent for $400/week. Suburb has a train station and up and coming cafe strip (15 mins walk away) and borders the current "hot suburb". It also has a direct bus link into town. Suburb has a more "urban" feel (with a number of historic houses) and has close proximity to the river. House is in direct proximity of a number of schools. House is close to a large shopping mall and also to a recreation centre and a number of parks. There are limited SFH <$500k in this suburb.
I have a more than 20% deposit and would be committing less than 25% of my take home pay on either property so cost isn't the primary consideration but rather "personal enjoyment" and "future growth"
All commutes (for Villa and House) are the same length - the train commute involves a lot more walking, though the train itself is pretty quick. Obviously the more active commute would be preferable, and the trains are more reliable and run later at night, though these days I mostly ride my scooter anyway.
Both suburbs are mixed income though "Villa" probably has a lower median price and bigger range (i.e. One bedroom apartments through to million dollar+++ mansions, though two bedroom villas make up large portion of the stock. "House" is in a part of the suburb that is primarily SFH, though the suburb has a street which is 2 bedroom apartments. The median price is higher and the range is smaller (i.e. 2 bedroom apartments through to stuff that would just scrape the $1mn mark, most sales are in the $600-$800k range).
I suspect "house" would be the better investment due to being in a funkier neighborhood next to hot neighborhood, though the possible light rail project could really change things for "villa". I personally like "houses" neighborhood more too as it has an urban village feel and being close to the river. However, I am not sure about being a house owner. I am a single female, living alone and am not sure how I feel about coming home to a big empty house. I quite enjoy apartment living (though I really miss having an outdoor space - both Villa and House will give me this) and love having my neighbors close-by... it feels safe and homely. Villa would give me this plus my own outdoor space. I also have no knowledge of home maintenance and taking on an older house is a little scary. I'm also not sure if I want to do boring things like clean gutters and suspect I would outsource these jobs. In villa this is covered by the strata fee. At the same time, Villa feels pretty small, I'm not sure if I'd want to share it if a partner came on the scene and given the size of the second bedroom a house share would not be plausible. I don't really want to house share but the flexibility could be helpful if I were to loose job etc or wanted to really push for ER. The house certainly gives room to grow (but maybe too much room, it easily the size for a small family, and I don't want kids).
Has anyone else made the decision to buy a house when they thought they were more of a Villa/Townhouse person and how did they feel and why? Are you glad you chose the extra space and privacy or do you wish you'd chosen the lower maintenance and cheaper option?