Have a narrow lot? A townhouse is the perfect plan for you!
One way to take advantage of the small amount of space you have on your narrow lot is to build a two storey townhouse. These house-types are becoming increasingly popular and with Perth becoming more and more built up, it’s easy to see why.
The key benefit of building a town house is the smaller lot size it requires, by building on two levels you can effectively half the size of the lot required to achieve the same living space. Inner city land is zoned for higher density and the land is more expensive per m2 which means building a town house is a great way to get a larger house size on a smaller lot.
One of the common uses for a townhouse is to build two houses side by side on a lot that’s split down the middle. Sometime the garage can be built at the front or to the rear with a laneway access. There are a number of complicated issues to consider when attempting a narrow lot townhouse development, as the subdivision process and the contours of the lot can have a huge impact on the cost of the development. Getting a quality initial consultation outlining the pros and cons of such a development from an experienced development consultant will should outline these issues upfront and save you money.
How do I know if a townhouse will suit my lot?
If you have a lot zoned from R30- R60 and you require a larger house on a small lot then a town house is a great option. Provided the site related costs are the same, the narrow lot town house development means the end product will be all street frontage. Another thing to consider would be a private driveway to your house as this would be more sought after in Perth and this can generally deliver a higher resale value.
If you are trying to decide between build a townhouse rather than a unit or similar, then you need to consider the cost of the land and to a degree the cost of the construction. If the land value is a similar cost per m2 to the cost m2 cost of construction of a two story then it’s a good option. If the land value is significantly cheaper than cost of construction per m2 then it may warrant a more long term investment strategy aimed at future growth.
Another benefit of townhouses is that it can help increase growth potential of the areas they are built in. The value of a townhouse will generally be more than a single story villa on a similar size lot as it is larger. This can lead to an increase in the average sale price for an area resulting in potential increases in valuations.
Townhouses provide more accommodation per m2 of land used so contribute to a larger density of population. Areas which have a larger density of population are able to support more infrastructure like cafes and shops adding what some people perceive as a better quality of life which in turn can contribute to what people are prepared to pay for a property.
Another thing to consider when thinking about townhouses to live in or as an investment property, is using alternative construction methods. Traditional construction methods in Perth are double brick and concrete slab. These are expensive & slow to build in comparison to the lightweight construction methods used in the rest of the world. This means you need to factor in additional cost not just for the construction but also the holding costs.
Building light weight upper floor allows you to maximize the yield of a development site for future resale value while reducing the initial investment. A light weight upper floor can save you up to 20 -30% on traditional construction costs and can be completed in a time frame similar to a single story time frame. This opens up the number of areas where a townhouse project will work.
Another alternative lightweight construction method is the ‘pod’ which are built in the factory and once completed, are driven to site and craned onto the upper floor. The suitability of this option will depend on access to the site and the nature of the site. An experienced development sales consultant like the team at Summit Projects can guide you in which will be the best options for you. While they can be built in advance and save time Low bridges or overhanging trees create problems for delivery. Constructing the upper floor frames on site has fewer restrictions but you need to build the lower floor before you can start. The positive is that both methods are faster making savings in holding costs & reducing the time your money is invested.
If you are concerned that using ‘alternative methods’ will result in a lower resale price for you home, then worry not. In the past the resale value for traditional construction was higher, but as Perth has grown up we have started to see a greater acceptance to construction in alternative materials. The diversity of culture within the community means there’s a greater understanding of these construction methods as most people have experience in this product and as a result there is likely to be less impact on future resale values as acceptance grows.
If you would like to find out more about the many benefits of townhouses and see our range of plans to suit narrow lots, contact one of our experienced Summit Projects development consultants!
Disclaimer: The information within this article is general information only and it does not constitute advice or recommendation. It does not take into account your financial situation, investment objectives or personal circumstances. Before making a decision about developing your property, you should seek independent financial, legal and taxation advice.