Australian Property News

Baby boomers pay premium price for separate title townhouses

Posted on Thursday, September 23 2010 at 11:30 AM

As a large population of baby boomers downsize in Canberra, demand for townhouses on separate titles is accelerating and price premiums are being paid, according to Badenoch Real Estate principal Symon Badenoch.

As baby boomers downsize they still want their own freedom and are prepared to pay more for separate title townhouses, said Badenoch.

Badenoch has personally observed premiums of around 10 per cent paid on a townhouse with a separate title in comparison to one on a strata title.

“Many are used to living on a 1500-square-metre, separate title property and they want to continue to have the flexibility of making alterations and additions to the dwelling if they want, without the regulations of a body corporate,” he said.

Badenoch identifies suburbs of Cook, Hawker and the Belconnen town centre as locations where investors can find the highest concentration of these separate title townhouses.

One recent example Badenoch observed was with a rundown two-bedroom townhouse on a separate title, which was advertised at $350,000 but sold for $390,000.

“At the same time an almost identical townhouse in the same area but on a strata title sold for $365,000,” he said.

“The woman who bought the townhouse on a separate title wanted to gut it and put on a pergola and because she had no regulations it wasn’t an issue,” he said.

Badenoch said it’s only getting harder to pick up a townhouse on a separate title, so if you can get your hands on one then it’s a solid investment.

“Most new townhouse blocks are on a strata title and regulated by a body corporate so to own a little plot of land is very desirable, especially for the baby boomers,” he said.