The first thing, you should know when you start searching for real estate in Toronto is what type of home is right for you? You should ask yourself are you a condo person or freehold person?
What is a Townhouse?
A townhouse is a house that has multiple floors and having another name “row house”. They have a separate entrance, parking space and private outdoor space.
Why this is beneficial for you:
- Less maintenance: You are required to pay condo fees monthly to the condo corporation. The condo fees cover the cost of snow removal, lawn care, and maintenance of the common areas.
- Good neighbours: all the homeowners in the condos townhouse share the available facilities like swimming pool, club house etc. Thereby you will get the nice and good neighbours to help you in your bad situations.
- Cost: Condo townhouses tend to be less expensive. There is an inverse relationship between price and maintenance fees.
Negative Impact of Condo Townhouse:
- Less autonomy: Condo townhouse owners are subject to the bylaws of the condo corporation, which may have rules about changes you can make to your unit, fixtures you can install in your backyard, or even how to decorate for holidays.
- Higher fixed costs: There is a compulsion of paying monthly fees whether or not you are using available amenities.
- Special assessments: If the condo corporation’s reserve fund is poorly managed, you may be charged a special taxation, which is a one-time fee to pay for maintenance and repairs. The special taxation could be in the thousands of dollars.
Freehold Townhouse Pros and Cons
Why this option is beneficial for you:
- More autonomy: Freehold owners are free to alter any changes in their townhouse like any fixtures, installations and decorations according to their own way.
- More property appreciation: Freehold property are more valuable and are in more demand than condo property.
- Lower maintenance costs: Freehold townhouse owners can choose to do maintenance work themselves like snow removal and lawn care instead of giving to the third part and save money.
Other Negative impacts need to consider:
- You are responsible: You are only responsible for any repair and maintenance of the townhouse.
- No control over neighbors: You have no control over your neighbors. If they want to do paint in their home, there is nothing you can do about it.
- More expensive: Freehold are more in demand and have more cost than condo, sometimes ten’s of thousands of dollars more expensive.