Why We Love Townhouses.

Medium density homes, or townhouses can be a real game changer. If you are struggling to get into a home because you have a low deposit, this might be the option that you are looking for!

These days, townhouses can be very desirable. Some come with all of the creature comforts of building with a volume builder for significantly less! A few of the communities springing up around Melbourne are very well designed and are helping to change the way that people see townhouse projects.

The way that we buy townhouses is the reason why we love them. There are two types of medium density contracts. One-part and two-part contracts. Both are commonly used but one part contracts are our pick for success!

A one-part contract is an agreement stipulating that the purchaser will settle after construction is complete and the land is titled. A two-part contract is a little different.

This is an agreement where the purchaser needs to settle the land before construction commences.

When dealing with a one-part contract, a purchaser need only pay a deposit (no more than 10%) to secure the home and then pay the balance of the cost of the home upon completion. Now, as construction is traditionally a very lengthy process this buys the purchaser time! Time to save, time to pay off debts and time to progress in their job.

However, a two-part contract is very different. With this system, a purchaser settles the land ahead of construction. This means that they need their financial approval much earlier in the process than with a one-part contract.

The upshot is that, typically, from the day you sign either format of contracts, construction can take from 8-36 months to complete. A one-part contract means that you can enjoy the capital growth without funding your investment whereas a two-part contract requires you to pay progress payments for 75% of the process.