Townhouse vs. House: 5 Considerations For Toronto Buyers

Townhouse vs. House: 5 Considerations

If you’ve decided you want a low-rise home, it’s worth comparing condo townhouses and single-family houses before deciding to buy. What are the differences between the two? Which one will be better suited for you- for both your budget and your lifestyle?

To help you decide, these are some of the things to consider when deciding between Buying a Townhouse vs. a House:

1. Purchase Price

As you probably know or have assumed, asking prices for condo townhomes overall are significantly less than the cost of a house. In the Toronto Real Estate Board’s April report for example, the average selling price of a townhome in the 416 area was $792,180. The average selling price in the same month for a semi-detached house was $1,021,986 and for a detached house, $1,354,719. (Full Report) 

Takeaways:

·      If you want to spend less up front, or have a smaller down payment, a townhome could be the right choice. Townhomes, on average, are similar to single-family houses for less initial investment.

·      A house is still likely to appreciate more in value over time, so if you have a higher budget and a long term investment is your top priority a house may be right for you.

·      Keep in mind that lifestyle is also very important when you’re planning to buy, not just potential long term value. So consider…

2. Maintenance

Condo townhomes, like all condos, mean less worry about keeping up the property. You can simply come home and know your grass is cut, walkways are shoveled, and so on. If something larger scale comes up, like the need for a new roof, it will often be covered by your condo corporation, so you aren’t hit with a sudden expense you haven’t saved enough for. With a house you know all of the maintenance and any sudden larger costs will always fall entirely on your shoulders. Also, with condo townhomes you pay less in monthly fees than condo apartments since there are usually fewer amenities.

Takeaways:

·      If you prefer the low-maintenance lifestyle that condos offer with the feeling of a single-family home, a townhome offers it.

·      Houses will VERY likely cost you more in the long run, both in terms of ongoing upkeep and major repairs, so monthly fees on townhomes are reasonable with that in mind.

·      Maintenance fees on a townhouse are predictable (and less than condo apartment fees), and can cover many repairs. Unexpected costs pop up with a house at any time and the homeowner is always solely responsible for the cost.

·      If you don’t mind the time and cost involved in maintaining a home in exchange for your investment, then a house could be for you. Also if you want…

3. Control over the property

With a house, you own the land and the entire building itself, including the exterior. You are free to do renovations (except in some cases where certain additions require a permit). Condo townhomes have more restrictions about what you can and can’t change, since you only own the inside of your unit (With freehold townhomes you also own the small area of land your townhome sits on). If it’s important to you that you’re able to renovate as much as you want, a house would be best for you.

4. Location

With any home purchase, location is key. Buyers whose minds are set on a single-family house will often pay more up front as we mentioned, or might choose to give up a central location in order to buy a house. Townhomes are an often more affordable way to get into areas where single-family houses are out of your budget. In a desirable Toronto area like The Beach for example, townhomes are a cheaper option than the multi-million dollar homes around them.

Also, in places mostly populated with condo apartments, such as Liberty Village, there are few to no single-family detached houses available. Condo townhomes are a way to live in a centrally located area without giving up that low-rise home vision for an apartment. So, you’ll have the benefit of a low-maintenance condo lifestyle and the intimate feel of a house, in an area where houses are too expensive- or even scarce.

5. Age, Quality & Size

Similarly to how house buyers will make sacrifices for location, they will also sacrifice age, quality, and size. To buy a house in Toronto for less than a million dollars usually requires some sacrifices. You might buy an older “fixer upper” house to get into your dream area, or a tiny house that’s been beautifully renovated. These are both options for buyers looking for a house but wanting a deal.

Townhomes are a way to get quality newer construction and square footage for less than a house. Keep in mind there are often more stairs in townhomes, so if you’re not up to climbing frequently, a house might be best. Otherwise, if you want a turn-key newer home with more square footage for your budget, a townhome could be the right move for you.

Still have questions about which home type is right for you? Contact us to chat about your search.