Toronto and the broader region offer a multitude of choices to buyers interested in purchasing a townhouse as opposed to a condominium or a detached home. Townhomes are frequently preferred by first-time buyers as they offer more space and independence (compared with condos) and are more affordable than detached homes.

Typically, townhouse housing options in the GTA can be broadly categorized as follows:

  • Freehold townhouse – The homeowner owns both the house and the land the townhome is built on and is solely responsible for its maintenance.
  • Condominium townhouse – The homeowner only owns a percentage of the corporation that runs the condo townhouse complex. He/she is expected to pay a monthly maintenance fee to the condo corporation but is solely responsible for any maintenance costs arising inside the townhouse.
  • Stacked townhouse – Under this concept, homeowners own each of the two or more individual townhomes stacked on top of each other, with private access built in for each individual townhome. Again, a maintenance fee is paid to the condo corporation.

The Positives of Townhome Living/Investment

  • Affordability – Townhome ownership is often preferred by first-time buyers looking to enter the real-estate market, given its lower prices in comparison with detached homes on account of a townhome’s shared walls with other units in the complex and less outdoor space. Maintenance costs for townhomes, though varied, are also far less than those for a detached home, and mostly lower than those for a condominium apartment.
  • Shared amenities and community living – Townhome complexes usually offer a range of recreational and shared community spaces, such as pools, playgrounds, entertainment areas, meeting halls, etc. that are usually maintained by the condo townhouse corporation or a homeowner’s association.
  • Location, utilities, and extras – Townhome complexes are usually located in prime real-estate areas in cities, such as Toronto. It costs less to heat a townhome, and a townhouse complex usually comes with private parking space, which is a big plus in a city like Toronto.

The Negatives of Townhome Living/Investment

  • Noise levels – The bulk of condominium townhouse units share walls with the unit next door and/or on either side, which can make noise levels emanating from either side a concern. However, a townhome corporation’s community rules, as well as the use of good soundproofing material inside the units can help contain noise levels to a minimum.
  • Privacy concerns – Given the close proximity of townhomes in a community and the way they are built, they typically offer far less private outdoor space, compared with a detached home. This is something prospective buyers should take into consideration if privacy is a major factor driving buying preferences.

Some Useful Tips for Townhome buyers

  • Home and neighborhood inspection – It is always advisable to have the property you are considering buying inspected thoroughly (plumbing, air conditioning, electrical fixtures, etc.) especially if the townhouse is freehold or old construction. Similarly, survey the townhouse complex to get a better sense of the parking, community, and shared spaces, and the overall feel of the neighborhood in terms of safety, traffic, and noise levels.
  • Condominium townhome corporation rules and status – You should be fully aware of the rules and regulations followed by the condo corporation or homeowner’s association before taking a buying decision. It is also a good idea to have a lawyer review the condo corporation’s status certificate to determine its financial and legal standing, as well as its framework for calculating maintenance fees—for both the current and future scenarios.

As always, we at RE/MAX Royal Team Sachdeva Realty are available to assist you in your search for a new townhome, share any information you need about the GTA townhouse market, and offer other useful guidance to buyers and sellers.