21 Sep Freehold Townhouse vs. Condo Townhouse
Freehold Townhouse vs. Condo Townhouse, what is the difference?!
In simple terms, a freehold townhouse is a house that is attached on both sides (or one side if an end unit) but the same rules apply as with a traditional detached or semi-detached house. This means there are no condo fees and no common areas. The home owner is responsible for all maintenance and costs associated with the home and property. With a freehold townhouse, you own both the home itself and the plot of land it sits on.
A condo townhouse differs in the sense that you own everything inside the unit. The exterior, OFTEN including the roof, windows, lawns (known as the common elements), would be owned by all of the unit owners under the formation of a condo corporation. With that said, monthly maintenance fees (condo fees) are required by each unit owner to help pay for the costs associated with maintaining the townhouses and the grounds in the complex.
Here are some pros and cons to consider …
Freehold Townhouse Pros:
- No condo fees: You do not owe monthly condo fees to a condo corporation, this can mean saving hundreds of dollars a month.
- More autonomy: Owning a freehold townhouse gives an owner the freedom to change both the interior and exterior without any rules or regulations from a condo board.
- Higher property appreciation: Freehold townhouses have become more in demand, meaning the value of these townhouses are increasing at a faster rate.
Freehold Townhouse Cons:
- More responsibility: A freehold townhouse owner will be responsible for maintenance that condo fees usually cover, for example, exterior repairs, snow removal, garbage removal, lawn care etc.
- More expensive: On average, freehold townhouses are in greater demand and prices for these homes have become more expensive when purchasing.
Condo Townhouse Pros:
- Lower price: Condo townhouses on average are less expensive than freehold townhouses meaning more attainable (and affordable) for the first-time home buyer or buyers on a tighter budget.
- Less maintenance: The cost of maintenance to the exterior will be covered by your monthly condo fee. This can also include exterior repairs, snow removal, lawn care, and the upkeep of any common areas.
- Amenities: Monthly condo fees are partially used towards the maintenance of shared amenities which can include on-site gyms, parks, pools etc.
Condo Townhouse Cons:
- Less autonomy: The exterior of your unit is governed by a condo corporation and will likely have rules and regulations governing what you can and can’t do to your own home.
- Expensive condo fees: The condo corporation sets the cost of the monthly condo fee, these fees can rise over time and high fees can have a negative effect on resale value.
Want to know more?! Contact us today for more information or to discuss Guelph’s current market conditions.