When it comes to choosing the perfect townhome, potential homeowners often find themselves at a crossroads between freehold and condominium options. With majority of buyer preference skewed favour of freehold towns. Each option has its unique advantages, catering to different preferences and lifestyles. In this blog post, we’ll dive into the distinct benefits of buying freehold townhomes and condominium townhomes, helping you make an informed decision.
Freehold Townhomes:
- Ownership and Control:
- One of the primary advantages of freehold townhomes is ownership of both the unit and the land it sits on. This means you have complete control over your property, giving you the freedom to make decisions about landscaping, exterior renovations, and other aspects without seeking approval from a condo board. This can seem advantageous but also has a drawback since it is possible for a Freehold Townhome community to look disjointed and sloppy after years of poor maintenance by neighbours or property owners. Properties can be in a state of disrepair after years of negligence by owners, impacting the resale values and appeal of neighbouring units.
- No Monthly Fees:
- Unlike condo towns that come with monthly maintenance fees, freehold townhomes usually have lower ongoing costs. Homeowners are responsible for their property’s maintenance, but they have the flexibility to budget and choose their service providers. Keep in mind that utilities are frequently billed separately whereas with condo towns some utilities can be incorporated into the monthly maintenance fee (ie. Water).
- Potential for Appreciation
- Freehold properties generally have a higher potential for appreciation over time. As the owner of both the dwelling and the land, you may benefit from increased property values in the long run.
- Cost & Location
- This is a major hurdle for many potential homeowners to overcome. The cost of a freehold townhome is approximately 8-10% higher than that of a condominium townhome. Since there is no monthly maintenance fee, there is naturally more demand for this type of housing and it will always carry a premium compared to the exact same condo townhome with identical features. Freehold Townhomes are also frequently found on the outskirts and suburbs of the city, as developers choose to build condominium townhomes in new developments in combination with high-rise condos.
Condominium Townhomes:
- Low Maintenance Lifestyle:
- Condominium townhomes often come with the advantage of low-maintenance living. Exterior maintenance, landscaping, and common area upkeep are typically managed by the condominium association, allowing homeowners to focus on enjoying their living spaces without the burden of routine tasks.
- Amenities and Shared Spaces:
- Condo townhomes can provide access to shared amenities such as fitness centers, pools, and community rooms. This fosters a sense of community and provides additional recreational options without the need for homeowners to maintain these facilities personally.
- Security and Safety:
- Condominium complexes often implement security measures, such as gated entrances and surveillance systems, enhancing the overall safety of the community. This can be particularly appealing for homeowners who prioritize a secure living environment.
- Predictable Costs:
- Monthly maintenance fees in condominiums cover shared expenses, providing homeowners with predictability in their budgeting. This can be advantageous for those who prefer a set monthly cost without unexpected maintenance expenses. Maintenance fee is usually directly correlated to the interior square footage of the home. The larger the townhome, the larger the monthly maintenance fee.
- Stacked Townhomes:
- A stacked townhome is a structure that combines aspects of both traditional townhouses and condos. Units are vertically stacked on top of one another, sharing common walls and entrances. This design optimizes land use, making it popular in urban areas near transit. Residents frequently benefit from shared amenities and maintenance responsibilities. Keep in mind that a stacked townhome is always going to fall into the condominium townhome category.
Typical Stacked Townhome Cross Section
- A stacked townhome is a structure that combines aspects of both traditional townhouses and condos. Units are vertically stacked on top of one another, sharing common walls and entrances. This design optimizes land use, making it popular in urban areas near transit. Residents frequently benefit from shared amenities and maintenance responsibilities. Keep in mind that a stacked townhome is always going to fall into the condominium townhome category.
Ultimately, the choice between freehold and condominium townhomes boils down to budget, personal preferences, and lifestyle. Freehold townhomes offer ownership autonomy and greater potential for increased property value, while condominium townhomes provide a low-maintenance lifestyle with shared amenities, a sense of community and a superior location. Consider your priorities, future plans, and lifestyle preferences to make the right decision for your next home.
