Just like we did when we previously discussed the differences between condos and apartments, we will compare two popular housing options: it’s condos vs townhouses.
Let’s take a look at the distinct differences between these two property options.
The Basics
The best way to start this off is to determine the basics of each property:
- Condos are similar to apartments in that it is an individual unit residing in a building or community of buildings. Unlike apartments, condos are usually managed by an association or condo board, with each individual owning a condo.
- Townhouses are attached homes that the resident owns, but unlike regular homes, one or more walls are shared with an adjacent attached townhome.
While they might share some development similarities, the two’s biggest difference comes down to ownership, homeowner associations, rentability, and fees. Let’s break each of these down.
Ownership Rules
In terms of ownership, there is not much difference between the two.
Firstly, when you purchase a condo, you personally own your unit and share joint ownership of the building with the other owner-tenants. Therefore, you will contribute financially (more on that below) to the building’s overall running and your own individual unit.
On the other hand, townhouse ownership means that you own the building and the land it sits on. It is similar to a traditional home; instead, you might share some of the home’s walls with other detached dwellings.
Ultimately, it all comes down to what you want and what you can afford.
(Read our guide on what to look for in a condo rental)
Homeowners’ Associations (aka, the Board)
The biggest difference between condos and townhouses against single-family homes is homeowners’ associations (HOAs), better known as ‘the board’.
The HOA is run and operated by other tenants of the property, who handle the day-to-day maintenance of the shared spaces either through an individual or a Calgary property management company and establish all the rules. These can include noise levels, parties, pet allowances, renting out the property, and the extent you can conduct renovations within your unit (such as if it affects others or impacts their livelihood).
When purchasing either, you will have to pay monthly fees to the association to maintain the property. HOAs manage the building, its grounds, roofs and exteriors of the structures and common interior spaces in many cases.
In terms of condos vs townhouses, it all depends on how the HOA operates, their fees and rules. You’ll have to compare both and see the best option for you, both in terms of lifestyle and budget.
The Costs of Owning The Properties
Even with monthly HOA fees, owning a townhouse or a condo is more affordable than a home.
Yes, you have to pay for property taxes, home insurance, and home inspections (before taking control of the house), as well as the various maintenance fees that come with managing the property. Still, overall they’re great options for first-time homebuyers or anybody on a budget. They’re also great as investment opportunities, particularly as Calgary rentals.
(What to know how to make money from rental properties? Read this!)
In terms of the cost differences between the two, condos tend to be cheaper to buy since you invest in any land. The
HOA might be higher, though, but you won’t be worried about maintaining the land itself.
The Better Resale Value
The resale value of each of these properties will never be as high as a single-family home, but that doesn’t mean you can’t make a profit.
When it comes to appreciation rates, condos have generally been slower to grow in value than townhouses, but times are changing. The boom in condo properties, and their quality, coupled with the potential to profit as a condo for rent in Calgary, means you can still make a worthwhile investment after a few years. Townhouses, though, still offer high resale value.
The biggest concern is that buyers have to consider other factors out of your control, including how well run the HOA is, their fees, maintenance, what the building or land offers, and any future developments.
Which is Better For You? Calgary Condos or Townhouses?
When choosing between the two, it’s best to consider your budget, lifestyle, and short-term and long-term plans.
There’s no real winner—both have their pros and cons, and both have a fair amount in common with each other. Speaking to HOAs, real estate agents and Calgary property management companies can help. From there, you’ll be able to make the best decision.
At Unison Realty Group Ltd. we will find the perfect rental for you in a location that fits your needs. We’ll handle what you don’t want, and you’ll enjoy the benefits.
For any questions or inquiries, please contact us:
Phone: (403) 219-3000
Email: [email protected]
Website: unisonrealty.com
