Second guessing your home buying or investment decision because you’re worried houses appreciate more than townhouses?
You Googled the Internet, and checked the stats. It sure looks like Ontario houses appreciate more than townhouses.
You researched best investments for Ontario buyers and guess what? The townhouse vs house debate rages on. Single family home investors are adamant houses appreciate more than townhouses. Strata buyers decry the virtues of a townhouse vs house.
So do townhouses appreciate in value like houses? Or, to put it more accurately, why do townhouses not appreciate in value the same way?
Appreciation Difference for Townhouses vs Houses
Whether you’re a homeowner or investor, buying a townhouse vs house is all about location, location, location.
Still, Ontario real estate can skyrocket or plunge, depending on what’s going with supply, demand, and interest rates. The good news is townhomes in the right neighbourhoods, up and coming areas, or new subdivisions can increase competition for your home when it comes time to sell.
Who qualifies for a borrowed down payment on a house in Ontario.
Will the value go up as much as a house? Typically, no. Houses appreciate more than townhouses because of assets like:
- the prestige and freedom that comes with owning more land
- the relief of leaving urban noise and traffic, like freeway onramps, far behind you
- having a home that’s truly your own, personalized to your tastes
- and the privacy and autonomy of a detached property.
Not sharing common walls with neighbours, or living in a look-alike townhouse can push property prices up. All the same, arguing “townhouse vs house” is academic if you’re rarely home, and aren’t planning to do a lot of yard work, or hire landscaping and housekeeping services.
Use RRSPs for your first home down payment.
That brings us to your next buying dilemma —
What Appreciates More, Condo or Townhouse?
You’ll pay more for a freehold townhouse (Ontario has fewer of them) than a condo, but returns on investment are higher.
Freehold townhouses sell quicker than a condo townhouse or apartment, and buyer competition is stiffer because of the limited supply. Like houses, your freehold townhouse will appreciate more than apartment condos and condo townhouses. Find an appraiser near me.
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That’s because freehold townhouses are usually larger, have bigger yards, and give buyers more autonomy than condos. You maintain your own home and yard, with no condo corporation fees to pay, and decide what colour to paint your home or how to landscape your yard.
Add maintenance costs when you calculate the return on investment though. Having yard space and a parking pad brings its own expenses, and repairing a roof in a freehold townhouse is more costly than sharing expenses with a condominium corporation.
Figure out CMHC down payment rules for high ratio mortgages.
How Houses Compare to Condos
Homes tend to appreciate more than condos because:
- Homeowners value having their own space.
- Detached homes are usually larger than condos.
- A home can be renovated without seeking consent from a condo corporation.
- Homeowners can spend their money the way they want, instead of on common element fees for shared amenities, like elevators.
- Homes are easier to rent than condos, which may have rental restrictions.
Before You Buy a Townhouse vs House or Condo
Our best advice: think about what you want in a home or investment. The “do homes appreciate more than condos?”, or condo vs townhouse debate may not even be a thing in your decision. Get an online estimate of home values, Ontario real estate.
When to Pick a Semi-Detached Townhome or Condo
Townhomes and condos can be good investments if:
- you want shopping and transit nearby
- security is an issue (your neighbours are closer)
- you prefer less maintenance and more recreational time
- your homebuying or investment budget is limited
- or you just want to downsize.
Hire a real estate lawyer in Ontario.
What Affects Appreciation Values
Your townhouse will appreciate quicker if it’s in a neighbourhood where crime rates are low and buyers want to live. Walkability to services, and “days on market” for new or resale units, are indicators a neighbourhood is desirable to buyers. Condo owner rights and duties for townhouse owners.
How your condominium corporation manages your property is crucial to appreciation. Condo corporations with legal issues, or that neglect to repair or replace outdated amenities, drag values downward.
Privacy can be an issue in townhouse condos because, unlike a detached house, they have shared walls. But owners enjoy more amenities, like a swimming pool, fitness centre, or party room.
Yes, you really need a real estate lawyer.
Shovelling snow, raking leaves, or painting window trim are managed for owners, and a condo’s location may mean you can do without a car. That can appeal to first time home buyers with a tight budget for buying a home or investment property.
Making Up Your Mind
We can’t make up your mind for you. But in the townhouse vs house vs condo sweepstakes, if the fact houses appreciate more than townhouses matters, maybe you need to:
- flip investments to buy up to a house
- borrow the down payment
- or get a shared mortgage with family or friends.
Why You Need a Real Estate Lawyer
Like buying any home, getting an experienced realtor and having a home inspection are well advised when you condo shop. Short deadlines or complex mortgage arrangements are no problem when you hire an Axess Law flat rate real estate lawyer.
Axess Law’s licensed Ontario lawyers can review your agreement of purchase and sale and point out changes you may want to make. We go over status certificates, the condo corporation’s audited financial statements, and reserve funds for repairs, and check pre-construction purchase contracts or assignments for sale for legal issues.
Our legal professionals close condo real estate transactions so you meet all the mortgage discharge and financing, subject-to conditions, and obligatory home buyer or seller clauses on time.
We have Greater Toronto Area real estate attorneys nearby who can receive legal documents from realtors and mortgage lenders and search titles to property for outstanding debts or liens that could delay your sale.
Our lawyer fee for buying a condo is all-inclusive — no extra fees when you receive your statement of adjustment, just our regular, low flat fees for only those legal services you need or want.
Affordable Legal Services, Anywhere in Ontario
Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
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Book an Appointment Online or By Phone Today
Dial our 647-479-0118 lawyer line for a free quote on buying or selling your next home or use our easy web form to book appointments online. It just takes minutes of your time. In person meetings are available at any of our Greater Toronto Area law offices nearby you. Pop in any time to arrange an appointment or call toll-free to 1-877-402-4207.
Axess Law has onsite parking and easy transit access.
Click here to learn more about Axess Law’s real estate law services.