Is Buying a Condo or Townhouse Worth It?

By Emily Southey | 10 minute read

Prospective homebuyers have many options when it comes to buying a home. Beyond which property to buy, they must first decide what type of property they are most interested in. Three of the most common types of homes today are condos, townhouses, and houses. Below, we break down the pros and cons of each to help you decide which one makes the most sense for you, your lifestyle, and your real estate goals.

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Condos

A condominium (condo for short) is a unit within a larger community, often a highrise building. One of the most popular types of homes for homebuyers, condos are generally considered to be the lowest maintenance. For this reason, they are often well-suited to first-time homebuyers, retired homeowners, single homeowners, or people who travel frequently. Condos might look similar to apartments in that many distinct units make up a building and walls are shared between neighbours. However, there is one key distinction between condos and apartments, which is that condos are owned and apartments are rented. 

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As mentioned, condominiums require the least amount of maintenance, as it is the responsibility of the condo association to handle the day-to-day management of the property. From a leaky roof to a broken communal swimming pool, general maintenance and repairs are taken care of by the condo association. Of course, to cover these costs condo owners pay Homeowner Association (HOA) or condo fees. In addition, condo associations can have strict rules, regarding everything from pets and renovations to tenants. That said, the convenience of owning a condo outweighs the extra cost of limitations for many. In addition to the management of the property being taken care of, condo owners may also get to enjoy all kinds of amenities, such as a 24/7 concierge, fitness centre, sauna, cinema, swimming pool, and more.

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The Pros and Cons of Buying a Condo

We outline the pros and cons of buying a condo below.

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Pro: Luxurious amenities

A major pro of buying a condo is the amenities they offer. Many condo buildings, especially newer ones, include all kinds of luxurious amenities that make living in a condo much more enjoyable. Examples of popular condo building amenities include swimming pools, saunas, fitness rooms, cinemas, rooftop terraces, garbage pickup, snow removal, and a 24/7 concierge. 

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Pro: Proximity to urban areas

Another perk of buying a condo is that they might allow homeowners, especially first-time homeowners, to purchase a property closer to a city centre. As urban areas tend to be more expensive, buying a condo might be your only option if you want to live downtown. While purchasing a house in a major city might be unaffordable, buying a condo might not be. Therefore, buying a condo may not only give you access to city living but condos in urban areas tend to appreciate faster than condos in suburbs, increasing your odds of turning a profit when it comes time to sell. 

Pro: Low maintenance

The third benefit of buying a condo is how convenient and low maintenance they are. The condo association is responsible for general maintenance and upkeep, which means you can reap the benefits of owning a property without the hassle of managing it.   

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Pro: Added security

Finally, the added security that condos offer can be a significant pro for homeowners. Many condo buildings have 24-hour concierges or security personnel, as well as locked entrances and elevators. These features provide a higher degree of safety and security that simply does not exist with townhouses or single-family homes.

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Con: Condo association rules

The main con of buying a condo is the condo association rules. As mentioned these can be strict, and homeowners might find it frustrating to have to abide by them. For example, condo owners may be required to obtain permission from the condo association to make changes to a unit, to get a pet, or to rent out their unit to a tenant. If the association were to deny any of these requests, the homeowners may have little recourse. 

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Townhouses

Moving on to townhouses. Townhouses are generally less expensive than single-family homes but may be more expensive than condos. They are also larger than a typical condo, though they often share exterior walls with neighbouring homes, much like a condo. Townhouses may feature small front and backyards or patios, which offer a slice of outdoor living that is atypical of condominiums. Further, like condos, townhouses usually come with HOA rules and fees, though these rules may be less strict, giving a townhouse owner a little more autonomy than the average condo owner. Generally speaking, the older the townhouse development, the more expensive the maintenance fees are. Overall, a townhouse is a cross between a condo and a standard house, which to some homeowners is the best of both worlds. 

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The Pros and Cons of Buying a Townhouse

Here are some of the pros and cons of buying a townhouse: 

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Pro: Greater autonomy

Townhouse owners have more freedom to make changes to their properties than condo owners. Plus, in the case of a detached townhouse, owners can alter both the interiors and exteriors of the home. 

Pro: Higher value

Another perk of buying a townhouse is the higher resale value they offer. As townhouses offer more freedom and are often larger in size than condos, homebuyers are willing to pay a higher price, especially if the townhouse is in a prime location. If appreciation or investing is an important part of your real estate goals, a townhouse may be an ideal fit.

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Con: Less secure

Townhouses are generally considered to be less secure than condos. As they have windows and doors that lead directly onto the street, and no 24/7 security or concierge, the odds of an incident are higher. That said, townhouse owners do have the option of purchasing security systems to increase the safety of their properties. 

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Con: More expensive

Another downside of buying a townhouse is that they are more expensive than condos. Therefore, homebuyers will need to prepare for a higher down payment and larger mortgage payments. In addition, townhouse expenses, such as utilities and property taxes, are also usually higher than condos.

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Con: More responsibility

Lastly, townhouse owners have more responsibility than condo owners. For example, if an HVAC unit breaks or a plumbing issue arises, they must handle it on their own. There is no association they can call to fix it for them. 

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Houses

Last but not least are houses. Standard houses or single-family homes are one of the most popular types of properties purchased today. Single-family homes are stand-alone structures set on a foundation. They do not share walls with neighbours or common spaces with others and are often larger in size than condos and townhouses. Houses also tend to feature a greater mix of outdoor and indoor living space. Unlike condos and townhouses, which are usually subject to HOA guidelines or rules, houses offer the greatest amount of autonomy to homeowners. Owners are typically free to decorate, repair, renovate, or maintain their properties any way they like. The drawback to owning a house is that since they are often larger in size, they are also more expensive. In fact, single-family homes typically cost tens of thousands of dollars more than condos.

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The Pros and Cons of Buying a House

Check out the pros and cons of buying a house below:

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Pro: Higher property appreciation

Single-family homes are generally considered to be the most valuable among the three types of properties (condos, townhouses, and standard houses). Therefore, people are willing to pay the most for them and they often experience the highest property appreciation (that said, appreciation is never a guarantee in real estate, no matter what type of property you buy). If part of the reason you are buying a home is as an investment, then a single-family home might be right for you.