Townhomes have consistently been one of the fastest real estate growth assets year-over-year, with very high demand amongst first time home buyers, both savvy and seasoned investors.
As with all real estate, buyers will always want to live in the best location, close to transit and local amenities while having the best unobstructed views. Expect to pay a premium in price for townhomes that are end units and corner lots, sit on a ravine, have better views with parks or natural greenery.
There are various types of townhomes with specific classifications and distinctions: 1) Traditional Freehold Townhome These are the most desirable forms of Townhomes. Homeowners have freehold ownership, which means they own both the land and the property on it and can make changes/renovations they want as long as it complies with municipal provincial and federal laws. They don’t come with a maintenance fee, offer a backyard/ front yard and have the potential for more bedrooms and bathrooms. They share side walls with the neighbouring home, typically have a basement and are often similar in size to single detach homes. This form of Townhouse appreciates the fastest in value. The owners are responsible for maintenance, general landscaping of the property and city services such as garbage and snow removal would need to be paid separately.
FREEHOLD (POTL) TOWNHOMES
2) Freehold Townhome (POTL)
A Parcel of Tied Land is a freehold property with a common element that is registered under the condominium Act. This type of freehold comes with a maintenance fee that covers garbage removal and snow removable in addition to common elements. Examples of common elements that are included: Roadways, sideways, parking, landscaping and playground areas.
Most developers are designing this type of townhouse as the cost of city services are spread amongst the owners, which lowers overall cost. Single and double car garages are usually built into the townhomes and many come with a basement.
TOWNS ON LESLIE, AURORA - FREEHOLD (POTL)
3) Condo Townhomes
These forms of townhomes come in various designs, offering 2 stories, 3 stories & 4 stories. Parking is usually offered underground or on ground level. These come with a maintenance fee and is calculated either by per square footage or a fixed rate. These types of Townhomes are constructed in a row with other townhomes or can be built in larger condominium complexes on the ground level of the condo. Various designs offer rooftop terraces or balconies and the amenities are shared amongst the residents.
URBAN TOWNHOMES
4) Urban Townhomes
These types of townhomes are becoming more popular in urban areas around the Greater Toronto Area as they are built around transit, many amenities, malls, parks, restaurants and retail shopping. The design of these townhomes are usually constructed with another owner on the upper or lower floors. These urban townhomes get their inspiration from condos with modern architecture and design elements into the house.
These come with a maintenance fee and is calculated either by per square footage or a fixed rate. The maintenance fee on these low rise doesn't increase like typical condo maintenance fee because they don't come with a lobby, a swimming pool, gym and have less shared amenities. The trend for this kind of design is growing more popular as they offer one bedroom to three bedroom options.
The one bedrooms usually occupy the entire main ground floor, which is a great alternative for the aging population that want to downsize but don’t want to live in a condo. These are becoming more attractive as they offer more space compared to condos. These properties usually include parking and offer private rooftop terraces or outdoor patios and owners have less surrounding neighbours.
5) Stacked Townhomes
Stacked townhomes are a type of multi-unit building which ‘stack’ one- or two- storey units on top of each other. They give homeowners more separation than a typical condo, because each unit has its own exterior front door and there are no elevators or shared lobbies. These are become more popular as it provide owners a house-like atmosphere with several floors but also offers condominium management style with shared amenities and services. These come with a maintenance fee and is calculated either by per square footage or a fixed rate. The maintenance fee on these low rise doesn't increase like typical condo maintenance fee because they don't come with a lobby, a swimming pool, gym and have less shared amenities.
Parking is available either in an underground garage or built underneath on the ground level of the townhouse. Typically the floor plans for these stacked townhomes offer the owner a choice of a unit on the main level with a patio/balcony or the upper levels with a roof top terrace.
STACKED TOWNHOMES
6) Back-to-Back Townhomes
Back-to-back townhomes are just what they sound like: in addition to sharing side walls, homes share a back wall with another. This improves affordability, while still giving homeowners their own space. These homes still offer single or double car garages, two- three bedrooms with a large open concept living space.
7) Bungalow Loft Townhomes
As the name suggest, Bungalow townhomes are built completely on a single floor. Other design of Bungalow lofts may look like a one storey home from the outside but they have loft areas on the second floor that provide extra living space. These are very popular for the aging population as there are less stairs.
8) Split Level Townhomes
Split level townhomes look similar to traditional or three storey townhomes from the street but their unique interiors help them stand out. These townhomes use staggered floors with short sets of stairs to create 4 or 5 different levels. Split levels are also called Tri-levels since there are at least three levels of living space with two sets of stairs off the homes’ main story, leading upstairs to bedrooms and downstairs to the basement.
9) Rear Lane Townhomes
Rear lane homes commonly have parking situated towards the back with a driveway or parking area that’s detached and flanking the backyard. These are usually two and three story townhomes.
REAR LANE TOWNHOMES
10) Live/Work Townhomes
Live/work townhomes are a fairly new concept and offer larger square footage. These are designed to offer an entire floor for commercial workspace. The living space is designed separate and could occupy the upper 2 levels. There will be two separate entrances for the storefront and the residential side. They are specially zoned so that the entrepreneur can write off office space as a business expense.
Investing in pre-construction townhomes is a fantastic idea as the property will appreciate in value over time while it’s being built. The buyer can also spread out the payment structure based on the developers payment plan, allowing cashflow. Factors that buyers should consider and should research when looking for a pre-construction Townhomes:
1. The developer’s reputation
2. City plans for the next 10 years
3. Local transit
4. Parking
5. Price per square foot
6. Comparable in the same area
7. Features and finishes
8. Amenities offered
9. Floor plans
10. Growth/appreciation of other neighbouring homes
LIVE WORK TOWNHOMES
If you’re interested in a pre-construction property, or another home purchase in Toronto or the surrounding GTA, the Mpire Realty Investments Team is here to help. Simply reach out to our Mpire Team to schedule an obligation-free meeting.
We look forward to working with you!
Contact us: Team Mpire
mpirerealtyinvestments@gmail.com
For the comprehensive process of buying a pre-construction property, read:
