Trying to decide between a freehold townhouse and a condo townhouse? This choice between types of townhouses affects both your wallet and your lifestyle.
Freehold means you own the whole property, both the home and land. Condo means you own just the inside of your unit, while sharing ownership of land and outside areas.
Before you sign anything, let’s break down what each option really means for your daily life and your future finances.
Freehold and Condo Townhouse Facts You Need to Know
- Freehold townhomes give you total ownership and control, with no monthly fees
- Condo townhouses cost less upfront but come with monthly fees ($300-$1,000)
- With freehold units, you handle ALL maintenance yourself
- Condo living includes shared amenities like pools and entertainment rooms
- Freehold homes typically grow in value faster, with fewer rules about what you can do
- Condo corporations set rules that limit what changes condo owners can make
What Is a Freehold Townhouse?
A freehold townhouse means you own everything—the actual home and the land beneath it. This is similar to land ownership with detached homes, but in a more compact setting.
This ownership gives you total control over your property. Want to paint your door bright purple? Go ahead! Need a new roof? That’s also completely up to you (and your budget).
Unlike condo townhouses, you won’t pay regular monthly fees to a condo corporation. This can save you thousands each year. The trade-off? You’re responsible for every repair and all upkeep, inside and out.
Many buyers love freehold townhomes because they tend to grow in value faster than condos. Why? People like having full ownership without monthly maintenance fees.
Freehold Townhouse Pros
When you buy a freehold townhome, you get some big advantages that might make the higher price worth it.
No Monthly Fees
One of the best parts of freehold ownership? No monthly fees!
Those monthly fees add up fast. Without them, you can save more each month. You avoid surprise fee increases that blow your budget and skip special assessments when the condo corporation needs extra money.
Plus, since more of your money goes towards ownership, you’ll build equity faster. This financial freedom matters a lot to many homeowners.
Better Growth in Value
Freehold units often grow in value faster than condos, just like how townhouses can be a good investment overall when compared to condos. Here’s why:
- No monthly fees means more buyers are interested
- Full ownership attracts people looking for long-term homes
- You can improve the property however you want
- Your improvements directly boost the average price
- People are willing to pay more for no condo restrictions
The average price of freehold townhomes has shown stronger growth than condos in recent years. That means more money in your pocket when you eventually sell.
You Own the Land (Really Own It)
Owning both your house AND the land gives you real freedom. You can:
- Make changes to your home without asking permission
- Landscape however you want
- Design your backyard without approval
- Handle repairs on your schedule, not someone else’s
- Avoid shared decision-making with neighbours
This land ownership is huge for people who want to personalize their space. You’re truly the boss of your property.
Freehold Townhouse Cons
Freehold townhomes aren’t perfect for everyone. They have some real drawbacks you need to think about before buying.
Costs More Upfront
The biggest hurdle for most buyers? Freehold townhomes have a higher average price to buy.
The average price of freehold townhomes is about 20% higher than similar condo townhouses. That means you need a bigger down payment, and your mortgage payments will be higher. Plus, property taxes and closing costs will likely be more.
These higher costs keep some buyers out of the freehold market, especially first-time buyers.
You Handle ALL Maintenance
With a freehold townhome, every single repair is your responsibility. This leads to higher maintenance fees overall.
These costs add up, and they’re unpredictable. A new roof or furnace can cost thousands with no warning. Plus, you’ll spend weekends on yard work or pay someone else to do it.
Unlike condo owners who enjoy a low-maintenance lifestyle, freehold owners bear the full burden of home maintenance.
Community Fees Might Still Apply
Even with a freehold townhouse, you might still have some shared costs:
- Some neighbourhoods have homeowners associations with small fees
- You might share costs for private road maintenance
- Community security systems might have shared fees
- Shared amenities like parks or playgrounds might have costs
- Property taxes still apply (and they’re often higher than condos)
Always check what community fees might still exist before you buy.
What Is a Condo Townhouse?
A condo townhouse means you own your unit’s interior but share ownership of the land and exterior with other condo owners through a condo corporation.
With a condo townhouse, you pay monthly condo fees—usually $300 to $1,000—to cover exterior maintenance and shared spaces. Some of this money also goes into a reserve fund for unforeseen expenses.
The condo corporation (run by a board of residents) makes decisions about maintenance, rules, and how money gets spent. Condo townhouses require you to follow rules about what changes you can make to your unit, especially anything that affects the building’s appearance.
While you have less control, you also have fewer maintenance headaches. The trade-off is worth it for many buyers seeking a low-maintenance lifestyle.
Condo Townhouse Pros
Condo townhouses have some big advantages that make them perfect for certain buyers.
More Affordable to Buy
The significantly cheaper purchase price is why many people choose condo townhouses.
Condo townhouses typically have a lower purchase price (about 20% lower) than freehold options. That leads to a smaller down payment and mortgage payments. Plus, you can get into better neighbourhoods for less money.
For first-time buyers or those with limited savings, this lower entry cost can make homeownership possible years sooner.
Way Less Maintenance Hassle
One of the BIGGEST selling points of condo living? A low-maintenance lifestyle!
Your monthly fees cover:
- Snow removal
- Lawn care and landscaping
- Roof repairs
- Exterior repairs of all kinds
- Building insurance
- Professional property management
This hands-off approach makes condo townhouses perfect for busy professionals, frequent travellers, retirees, or anyone who just hates yard work.
Shared Amenities You’ll Actually Use
Many condo corporations offer amenities you couldn’t afford on your own, like:
- Swimming pools
- Fitness centers
- Entertainment rooms
- Sports courts
- Green spaces
- Security systems
These amenities would cost a fortune to build and maintain yourself. Your monthly maintenance fees cover all this, often making them a good value if you actually use them.
Plus, these shared spaces help you meet neighbours and build community—something harder to find in freehold neighbourhoods.
Condo Townhouse Cons
Before you rush to buy a condo townhouse, consider these drawbacks that might affect your happiness and your wallet.
Those Monthly Fees Add Up
Monthly condo fees are the biggest downside for many buyers. Regular monthly fees typically range from $300 to $1,000, which is $3,600 to $12,000 per year. You pay whether you use the amenities or not.
Fees also tend to increase over time, and that’s not even accounting for special assessments, which can add thousands in surprise costs. This ongoing expense affects how much house you can afford.
Condo Rules Limit Your Freedom
Living under a condo corporation can feel restrictive. You:
- Need permission to change exterior doors or windows
- Can’t choose your own exterior paint colours
- May have limits on pets (size, number, or type)
- Might face restrictions on renting out your unit
- Could have rules about noise, parking, and even holiday decorations
These rules protect property values, but they also limit your freedom. For some condo owners, these restrictions become a major frustration over time.
Slower Growth in Value
The average condo townhouse typically doesn’t grow in value as quickly as a freehold. Monthly maintenance fees make them less attractive to some buyers, and restrictions on changes limit appeal.
Another issue is that you don’t own the land, which often appreciates faster. Special assessments can also hurt resale value, and rising monthly fees can scare away future buyers.
While condos still typically increase in value over time, the growth rate is often slower than that of freehold properties.
Freehold or Condo Townhouse: What’s Best For You?
Choosing between freehold and condo townhouses comes down to your priorities.
If you value complete control, have a bigger budget, and don’t mind maintenance, a freehold townhome might be perfect. You’ll enjoy more freedom and likely better value growth.
If you prefer a lower purchase price, hate maintenance, and want amenities, a condo townhouse makes more sense. You’ll give up some control but gain convenience.
Think about your lifestyle, finances, and long-term plans before deciding. Both options can be great homes—it just depends on what matters most to you.