Townhouses are somewhat of a niche residential property. Lying somewhere between a condo and a freehold home, townhouses can offer the best of both worlds. They come with unique perks and disadvantages—and they can attract unique buyers, too!
Do you think this property type makes the most sense for your current lifestyle? Read on to learn what every prospective townhouse owner should know before they buy…
Freehold vs Condo Townhouses
When discussing townhouses, it’s important to distinguish between the two major types. Freehold townhouses (also referred to as row houses) are attached to at least one other unit from the same development. Generally, they have a larger up-front purchase price than condo options. They’re perfect for homeowners who want complete autonomy over their property.
In contrast, a condo townhouse comes with management, a condo board, and development fees. For buyers looking for a more hands-off approach to up-keep and general maintenance, condo townhomes may be the more attractive option.
The Cost Efficiencies of Townhomes
Generally speaking, almost every townhouse is marketed and sold as a finished product. While you may be able to purchase units during the pre-construction phase, they tend to be sold with little-to-no renovations or updates necessary.
If you’re transitioning from a condo to a house, townhouses are fantastic turn-key options—and they typically offer much more square footage.
Additionally, sharing one or both party walls with neighbours means you may find yourself saving on heating costs through the winter (since the home next door may provide additional insulation and heat emittance).
Numerous Family Planning Benefits
Townhouses have become something of a natural stepping stone for young couples and families looking to expand. With multiple storeys, deck and basement spaces, and private outdoor areas, townhouses are a great place to raise children.
Gardens in your front and backyard are much better places for kids to play than condo hallways and elevators. Similarly, pet owners no longer have to fear regulations about where their dogs do their business.
Usually situated in areas that have been developed or are developing into highly livable neighbourhoods, townhouses tend to be in desirable locations. This also means they have a higher resale value and return on investment.
According to the Toronto Regional Real Estate Board’s Resale Housing Report for September 2020, the year-over-year percentage change in the price of townhomes across the City of Toronto increased by 11.27%. That’s slightly higher than that of single-family attached homes (11.23%) and vastly higher than that of apartments (6.79%).
This data shows that since last year, there has been an increase in the value of townhouses, resulting in very lucrative returns for their owners.
More Space, More Responsibility
If you are set on living in a low-rise establishment and dread the idea of “a box in the sky”, townhomes are a cost-effective hybrid of freehold homes and condos.
With virtually guaranteed outdoor space in the back and front yards, deck space and terraces, and rooftop gardens, townhomes are much better for living and entertaining outdoors than condos. However, they tend to require more up-keep.
If you’re accustomed to living in a condo or apartment complex, then shovelling snowy driveways and sidewalks will be a new duty for you. Learning to remember when garbage, recycling, and compost days are scheduled for pick-up is another task to keep in mind—not to mention physically wheeling your own bins out to the curb and back every week. While there may be a learning curve involved, most townhouse owners will tell you it’s well worth it!
Are you interested in becoming the new owner of a stylish townhouse in Toronto? Tell us all about your wishlist by booking a consultation with us here.