In Toronto, the term "townhouse" can refer to different types of properties, and much of the difference has to do with ownership. A freehold townhouse, sometimes called a row house or attached house, is a property where you own the entire home, including the land. In contrast, with a condominium townhouse, you own the interior space, but the condo corporation maintains the exterior and common areas.
Townhouses in Toronto are a smaller segment of the housing market, especially compared to detached homes and condo apartments, but they’re often found in high-demand urban and suburban neighbourhoods.
In this article we will focus on the 4 most common types of townhouses across the Greater Toronto Area (GTA), uncover their key characteristics, and their pros and cons.
1. Freehold Townhouses
What is a Freehold Townhouse? A freehold townhouse in Toronto refers to a property where you own the home and the land it sits on. It is part of a row of attached homes, with no condo fees or shared ownership of common areas.
Pros:
Complete Control: You have the freedom to renovate or modify both the interior and exterior of the home, without needing approval from a condo board.
No Monthly Fees: Since you own the exterior of the home, there are no condo fees, which can make these properties more affordable in the long term.
Greater Investment Potential: Freehold townhouses often appreciate well and can offer higher resale value, particularly in Toronto’s competitive housing market.
Cons:
Responsibility for Maintenance: Homeowners are responsible for all upkeep, including landscaping, roof repairs, and exterior maintenance.
Higher Initial Costs: Freehold townhouses tend to have a higher purchase price than condominium townhouses.
2. Condominium Townhouses
What is a Condominium Townhouse? With a condo townhouse in Toronto, you own the interior of the unit, but the condominium corporation owns and maintains the exterior and any shared spaces. This is a popular option for buyers seeking a lower-maintenance home in urban neighbourhoods.
Pros:
Less Maintenance: The condo corporation takes care of exterior maintenance, which can be a relief for busy homeowners who don’t want to deal with yard work or repairs.
Lower Initial Purchase Price: These homes are generally more affordable upfront than freehold townhouses.
Shared Amenities: Some condo townhouse developments include shared spaces such as gyms, pools, and green spaces.
Cons:
Monthly Condo Fees: Owners are required to pay monthly maintenance fees, which can increase over time and impact the affordability of the home.
Less Control Over Exterior: Homeowners must follow condo rules and may not have the freedom to modify the exterior or common spaces.
3. Stacked Townhouses in Toronto
What is a Stacked Townhouse? Stacked townhouses are a popular housing solution in Toronto, particularly in densely populated urban neighbourhoods. They are multi-level units that are stacked vertically, often with two or three homes in the same footprint.
Pros:
Space Efficiency: Stacked townhouses maximize land use, making them ideal for urban environments where space is at a premium.
Affordability: These homes are often more affordable than traditional townhouses or detached homes in central Toronto, making them an attractive option for first-time buyers.
Cons:
Shared Walls and Floors: These townhouses may offer less privacy than other types, as you share both side walls and ceilings/floors with your neighbours.
Condo Fees: Like other condominium properties, stacked townhouses typically come with condo fees for exterior maintenance and common areas.
4. Back-to-Back Townhouses in Toronto
What is a Back-to-Back Townhouse? Back-to-back townhouses are designed without rear yards, as the units share back walls as well as side walls. This style is increasingly popular in Toronto’s high-density developments.
Pros:
Efficient Use of Space: These homes are ideal for compact urban developments, making the most of limited land in the city.
Affordability: Back-to-back townhouses tend to be priced lower than freehold townhouses, offering a more affordable option in desirable Toronto neighborhoods.
Cons:
No Backyard: Since there’s no rear yard, outdoor space is limited, which may be a drawback for families or those who want more private outdoor areas.
What Townhouses Have in Common: The “Missing Middle”
In Toronto’s housing market, both freehold and condominium townhouses represent the "missing middle" between detached homes and condo apartments. They offer a balance between the two extremes:
Ground-Level Living: Unlike most condo apartments, townhouses are located on the ground level, often include basements, and may come with a small yard or outdoor space. This is an appealing feature for those who want a home-like feel without the full maintenance responsibility of a detached house.
Size and Maintenance: Townhouses typically require less maintenance than a detached home while offering more space than an average condo apartment. They provide a middle-ground option, making them attractive to families, downsizers, and young professionals.
Shared Walls: One common feature of all townhouses is that you’ll be sharing a wall with at least one neighbour, and in many cases, with two (on either side). This can help reduce heating and cooling costs, but may also mean less privacy compared to a detached home.
Affordability: Price-wise, townhouses usually fall between detached homes and apartment units, but this can vary greatly depending on factors such as the age, size, and location of the home. For example, a modern townhouse in a trendy Toronto neighbourhood could be priced higher than a detached home in a less central area.
Conclusion
Townhouses in Toronto offer a versatile middle option for homebuyers, combining aspects of both detached homes and condo apartments. Whether you opt for the independence of a freehold townhouse or the lower-maintenance lifestyle of a condominium townhouse, each offers a balance between space, affordability, and urban convenience.
If you have any questions or want to learn more about how I can simplify your home search and help you find perfect home that fits your needs, I’d be happy to help. As a Toronto realtor who started off as a student and made the switch from the corporate world real estate, I can relate to you. I’ve helped many first-time homebuyers and newly formed families navigate the market, get of the sidelines and find a place they can call home.
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