Why I Prefer Townhouses With Body Corporate Over Freehold – And Why You Should Too

One of the biggest mistakes buyers (including first-home, second home, renovators, doer-uppers, and investors) make, is deciding to overlook townhouses with body corporate. Thinking that they will save money by buying a freehold townhouse. Boy have I got a few reasons for you. 

As a real estate professional with Barfoot & Thompson Albany, I’m constantly asked the same question by home buyers and investors:
“Michael, should I buy a freehold townhouse or one with a body corporate?”

My answer is almost always the same: Townhouses with body corporate offer far more long-term value, protection, and peace of mind.

And yet, there’s a misconception out there that body corporate fees are “a waste of money.” In reality, they’re one of the most misunderstood (and most beneficial) aspects of townhouse ownership.

Here are 10 practical reasons why I would personally buy a townhouse with a body corporate over a freehold townhouse every single time.

1. Common Area Maintenance Is Taken Care Of – Completely

In a freehold townhouse, who does the lawns? Who organises exterior washing? Who pays for repainting the complex?

Answer: nobody… until someone decides they’re sick of looking at the mess.

Townhouses with body corporate remove the confusion. Everything from lawn care to exterior cleaning is planned, budgeted, and carried out professionally. No chasing neighbours, no awkward negotiations—just consistent upkeep.

2. Roof Repairs Become a Shared Expense

Roof issues will happen eventually. In a freehold townhouse, that cost hits you alone. In a body corporate, the cost is shared, which means bulk pricing, better contractors, and significantly reduced individual financial pain. This is one of the hidden gems of body corporate ownership.

Are you ready to sell your property? Contact me

3. Noise Issues? You Don’t Have to Fight Your Neighbours Yourself

Your freehold neighbour decides at 3 am they’re the next boxing heavyweight champion and starts punching the boxing in his garage—too bad, it’s between you and him/her.

But in townhouses with body corporate, the rules are clear. Noise limits exist, they’re enforceable, and there’s an authority to escalate issues to. It takes the emotional burden off you and prevents neighbourly relations from turning sour.

4. Communities Need Rules—Boundaries Make Good Neighbours

A country is governed by elected leaders for a reason—humans function best with structure. A freehold townhouse complex without covenants becomes a free-for-all:

• Everyone chooses their own paint colour
• Someone installs a satellite dish hanging sideways
• Another decides their garage is now a mechanic workshop

The result? A chaotic aesthetic and declining property values.

Townhouses with body corporate operate like a micro-government. Rules protect your investment, ensure cohesion, and maintain a desirable living environment. Structure is not your enemy—it’s your future capital gain.

5. First Home Buyers Actually Save More With Body Corporate

In Albany and the North Shore, the typical body corporate levy is $4,000–$5,500, occasionally $6k for newer, amenity-rich complexes.

But compare that to owning a freehold townhouse:

• $2,500–$3,000 per year for building insurance
• $800–$1,200 for exterior washing
• $4,000–$10,000 for painting every few years
• $500–$2,500 for lawn care and landscaping
• Emergency repairs that can run thousands

Financially, a body corporate is often the smarter entry point.

A Reality Check for First Home Buyers (Extra reason)

Let’s be honest—if this is your first home, and unless you’re a DIY king or queen, you are not painting the exterior a new colour, building a massive deck, or doing major renovations that require council consent. Your first home is exactly that—your starter home. It’s your ticket onto the property ladder so you can build equity, live comfortably, and upgrade in 5–7 years.

And here’s the truth:

If you were the type of buyer who genuinely wanted the freedom to renovate everything, reshape the land, and redesign the entire exterior—you wouldn’t be reading this article.

You wouldn’t be looking at any townhouse, freehold or not.

You’d be buying land.

A section.

A do-up.

Something with unlimited potential to add value.

Townhouses—freehold or body corporate—simply aren’t designed for large-scale renovation freedom. So the idea that body corporate somehow “restricts you from doing things you were never going to do anyway” is a myth. For most first-home buyers, a body corporate actually supports the exact lifestyle and budget they already have.

My newest townhouses with body corporate:

5/20 Schnapper Rock Road, Albany

12E Schnapper Rock Road, Albany

6. Building Insurance Is Included

Every body corporate must hold comprehensive building insurance. In New Zealand, it is a mandatory statutory requirement under the Unit Titles Act 2010 for every body corporate to obtain and maintain comprehensive building insurance for all buildings and improvements to their full insurable value.

That’s one major annual cost you don’t have to organise or pay separately.

Freehold owners? You’re on your own—and prices increase every year.

7. Investors Love Townhouses With Body Corporate for a Reason

Rentals require maintenance—and tenants won’t trim hedges, clean gutters, or repaint exteriors.

But with townhouses with body corporate:

• External maintenance is done for you
• The property stays looking sharp
• Tenants stay longer
• Vacancy rates drop
• Resale value increases

It’s one of the most hands-off forms of property investment.

8. Long-Term Maintenance Plans Remove Financial Guesswork

Who pays when the shared driveway cracks?
What if you don’t even use the driveway?
What if your neighbour drives a heavy truck on it every day?

Freehold ownership can’t answer these questions without disputes. But in a body corporate, there’s a 10–30 year long-term maintenance plan with allocated funds for repairs and upgrades. Everyone pays fairly, and work happens proactively—not reactively.

Also, your body corporate levy is based on the size of your principal unit and utility interest. So, you could be paying even less.

9. Townhouses With Body Corporates Protect You From “Neighbour-Induced Value Damage”

Here’s the controversial one.
Your biggest financial threat is not the market—it’s your neighbours.

One badly maintained freehold townhouse can:

• Lower buyer perception
• Reduce the value of the entire block
• Turn buyers away during open homes

Body corporate rules prevent value sabotage.

You may not control who your neighbour is, but a body corporate controls what they’re allowed to do. That protection alone can save you tens of thousands long-term.

10. Body Corporates Create a Sense of Pride—and Pride Protects Value

Freehold complexes often drift into “do the minimum” mode because nobody wants to take charge.

But in townhouses with body corporate, meet annually at the annual general meeting, owners vote (majority wins), participate, and take collective responsibility.
People naturally take better care of something when they feel they’re part of it.

A tidy, well-maintained complex attracts:

• Better buyers
• Better tenants
• Better resale prices

Pride is a powerful equity-builder.

Final Thoughts

Townhouses with body corporate aren’t a cost, they’re a safeguard.

They protect your investment, your peace of mind, your future resale value, and your quality of living. I would choose a body corporate townhouse every single time, not because it’s cheaper today, but because it’s smarter long-term.

If you’d like personalised advice on which developments in Albany and the North Shore offer the best value, I’m always happy to help.

Michael Hossaini

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