Townhouses on the rise in Tasman area– but what do the banks think?
We’re seeing more and more townhouses popping up around Richmond and Motueka – and for good reason. They’re typically more affordable than stand-alone homes, low-maintenance, and often well-located. For many first-home buyers, that makes getting on the ladder feel a whole lot more achievable.
But how do lenders view townhouses?
At Castle Trust, we’re working with clients every day who are exploring this growing part of the market. While stand-alone homes still tend to hold their value more consistently, townhouses can be a great choice – especially if you’re realistic about location, quality, and future resale.
A few things to know about getting a mortgage on a townhouse:
- Not all townhouses are treated equally – Mortgage lenders often have stricter criteria when it comes to new developments, smaller floor plans, or properties with shared driveways or limited title.
- Valuation trends vary – National data shows townhouse prices are more ‘hit and miss’ compared to the solid (albeit slow) recovery of stand-alone homes.
- Due diligence matters – We always recommend a thorough look at the development history, build quality, covenants and body corporate rules (if any) before you commit.
Our take? Townhouses can still be a smart way into the market – but they require a bit more care when it comes to finance and planning ahead. That’s where we come in.
If you’re considering buying a townhouse – or just wondering what your options are – let’s talk. We’re happy to run through your borrowing power and help you navigate the pros and cons.
