When it comes to purchasing a home, buyers often imagine it will be a freehold property without condominium fees and with a private backyard. While this common to be considered the first time buyers dream, in today’s market it is not as much of a reality as it once was. Considering alternative forms of ownership is essential to getting into the real estate market.
Townhomes in London, Ontario on average, saw the largest percentage increase in average price point among all other style of properties in the year 2021. The main reason for this came down to affordability. As prices began to rise, the most affordable option soon became the townhome. While some home buyers may believe it’s a compromise from a detached, I’m here to tell you the benefits of owning a townhome condominium.
Insurance Premiums
In most cases, purchasing a condominium townhome means that the highest and most expensive portion of insurance premiums are covered in your condominium fees. For first time home buyers, insurance premiums on single family freehold properties can be on average $125-$175 per month. Compare this to $30-$40 for a condominium townhome, and you’ll already begin to see savings on those condominium fees.
Minimal Property Repairs
Condominiums often handle property repairs such as the windows, doors, roof, siding, and foundation, paid for through the reserve fund. This means as a homeowner, you won’t need to keep a high home emergency fund and you won’t need to budget for these items in the future. Single family freehold properties can come with unexpected costs and it’s often recommended that you keep a personal “reserve fund” in every household for future repairs.
No Property maintenance
One of the largest benefits of living in a townhouse condominium is the minimal amount of property maintenance required. Condominiums typically cover landscaping, snow removal, deicing in the winter, garbage removal and gardening. For young professionals, busy families or retirees, this can be an incredible benefit when time is not on your side.
Entry Market Price
The price point to obtain a townhouse condominium on average, is significantly less than that of a single family detached home of the same quality. For buyers with limited options for pre-approvals, obtaining a townhouse condominium can be a great entry to the market.
Access To Higher End Neighbourhoods
Often times townhome condominiums are the more affordable options in neighbourhoods with primarily single family detached homes. Purchasing a townhome condominium can sometimes get you into higher end neighbourhoods at a lower cost of entry. When it comes to location often being the most important factor for home buyers, this can mean a significant difference in resale value for the future.