Do Houses Appreciate More Than Townhouses?

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 raged on again. Single family home investors are adamant houses appreciate more than townhouses. Strata buyers decry the virtues of a townhouse vs house.

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So do townhomes appreciate in value like houses? Or, to put it more accurately —

Why Do Townhomes Not Appreciate in Value the Same as Houses?

Buying a townhouse vs house is all about location, location, location for Ontario homeowners and investors. 

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.

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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 at the end of the day
  • 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.   

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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. Your unit will 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. 

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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 on your own is more costly than sharing expenses with a condo corporation. 

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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. 

When to Pick a Semi-Detached 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

Like a townhouse, your condo will appreciate faster 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.

How your condominium corporation manages your townhouse or condo 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 apartment condos, simply because they have more 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. 

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.   

Our Flat Fee Real Estate Lawyers

Short deadlines or complex mortgage arrangements are no problem when you hire Axess Law’s flat fee real estate lawyers. Our qualified Ontario real estate lawyers charge $999.99 and up to buy a condo or $799.99 and up to sell your pre-construction or resale condo. We can remote in by video conference anywhere in Ontario, 7 days a week, with convenient day or evening appointments that suit your schedule. 

Book an Appointment Online or By Phone Today

Dial 1-647-479-0118 for a free quote on buying or selling your next home or 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.

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