October 31, 2017 | Good to Know

Freehold townhouses have existed for well over 100 years back when our cities expanded in a horizontal fashion. Nowadays vertical developments are necessary due to the lack of space in our cities which is why condos are quickly taking over the bulk of ownership in larger cities like Toronto. Here is a breakdown of the differences between Freehold Townhouse vs Condo.

 

Freehold townhouse – Pros and Cons

Pros:

  • Autonomy – No rules set forth by your neighbours, you can renovate the home with an addition, paint the door (I know this sounds silly but you just can’t do this if you don’t own freehold).
  • Greater value and appreciation – as the saying goes “we aren’t making more land”, the more land that you can own the more wealth you will accumulate in time. Freehold homes far outperform condos historically.
  • Deferred maintenance – I suppose you could debate whether this is a pro or a con…but I’ve put it in a the “pro” section for the simple reason that you can choose what and when you want to fix or upgrade. Unless of course, it’s a major item that breaks without any warning and must be addressed immediately.

Cons:

  • Yard Work – Yes, I had to put this here. When the major snowstorm blows into town and it’s minus 35 degrees Celsius who really wants to shovel? Like it not it’s on you as a freehold owner. Same goes for leaves, lawn cutting, etc. Don’t get me wrong, there can be great pride in maintaining your yard but there are some days you really don’t want to do anything! Excellent home winter maintenance tips.
  • Damage – If there is any structural damage it’s on you. All expenses are on you. The $8,000 for a new roof is on you, that day. There is no shared reserve fund to pay your expenses.
  • Vacation – No one is watching over your home.

 

Condo  – Pros and Cons

Pros:

  • Property Manager – Someone else is organizing the cleaning of the hallways, elevators, parking lot, snow removal, tree trimming, removing your garbage etc. You simply get to enjoy living in your condo.
  • Concierge – A friendly face to speak to on your way in and out of your building. Someone to accept your Amazon Prime packages! (this will continue to grow in importance in coming years! Trust me…go look at the amount of Amazon Prime packages at the front desk of any New York City condo!). Not to mention the comfort of additional security and safety.
  • Vacation/Travel – It’s a breeze. Simply lock your door and go. That’s it.
  • More Affordable – Condo living is more affordable than freehold. The cost per square foot has skyrocketed in the last couple years here in Toronto but it’s far cheaper than purchasing a house!

Cons:

  • Rules – The condo corporation has rules that you must be followed. There are no exceptions. For example dogs: 1) are they permitted?; 2) weight restrictions; 3) number of dogs permitted? When a special assessment comes up, you must pay. There is no way around this.
  • Quality of Construction – Now this issue can also be added to Freehold, no question. However, when you own a condo you cannot replace the drafty windows or the condo door that you think is to too thin to block hallway noise. You must live with what you have. (Note: you can improve the living space with permission from the condo board)
  • Space – Can you get your furniture into the condo? Elevators can be too small for some furniture.

Here are some additional tips when moving into a condo.

 

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