Real Estate

Greater Appreciation: Large Corner Freehold Townhouse vs. Smaller 30' Detached?

  • Last Updated:
  • Jul 7th, 2020 6:31 am
[OP]
Newbie
Oct 6, 2007
72 posts
10 upvotes
Mississauga

Greater Appreciation: Large Corner Freehold Townhouse vs. Smaller 30' Detached?

Hi folks, wifey and I are looking at buying (possibly pre-con) and are seeing a few options where for we can get:
  • Larger corner freehold townhouse, with a better layout (1900 sq ft) 81 ft deep
  • smaller 30' detached (1600 sq ft ish) with a more basic layout, 88ft lot
The $/sq ft is obviously better with the town but there's tons of other factos to consider. Keeping all things equal (3 Bdr, 3 Bath, 1 Garage, Upgrades etc.) historically which tend to appreciate more/quicker?

Location: Halton Region

Before anyone points it out yes, on average detached pricing is higher than townhouse, which would indicate that despite the smaller size/layout you get yourself into a higher price "range" with a detached but the curiosity lies in could the highest range of townhouse be higher than the lowest range of detached?

Thanks in advance !
Last edited by zeppelin89 on Jul 7th, 2020 6:45 am, edited 3 times in total.
8 replies
[OP]
Newbie
Oct 6, 2007
72 posts
10 upvotes
Mississauga
RxRxRx wrote: Is townhouse freehold?
Yes it is. Thanks, just updated the post.
Newbie
Aug 24, 2019
73 posts
128 upvotes
Multiple factors to consider and depends,

Assuming both properties in same area and maintained, Detach property will be more worth as compared to townhouse.

Now not sure how much total land both properties are built in ; frontyard and backyard

Also there current value can help you decide how much difference in both properties
[OP]
Newbie
Oct 6, 2007
72 posts
10 upvotes
Mississauga
RxRxRx wrote: Multiple factors to consider and depends,

Assuming both properties in same area and maintained, Detach property will be more worth as compared to townhouse.

Now not sure how much total land both properties are built in ; frontyard and backyard

Also there current value can help you decide how much difference in both properties
Thanks for the reply. Updated with lot size details.
Deal Fanatic
Mar 27, 2004
7776 posts
5731 upvotes
Toronto
I would take an end unit.. too many buyers I find are obsessed about buying a detach home when they can get more value buying a town home, and enjoy it more frankly.

400 sqft is a significant difference.
Full-time Realtor
Deal Guru
Feb 9, 2009
12370 posts
11280 upvotes
so the next question really is

price of both?
Deal Addict
May 23, 2017
1357 posts
1343 upvotes
oasis100 wrote: I would take an end unit.. too many buyers I find are obsessed about buying a detach home when they can get more value buying a town home, and enjoy it more frankly.

400 sqft is a significant difference.
^ Agree, without knowing any other info and assuming price is similar I would personally go with the townhouse with bigger square footage, but that's because I want more space for kids. And I figure since I spend most of my time in my house indoors, the better layout is more important to me. If you are single or a couple with no kids and don't need that extra space, but value less noise from neighbours or more yard space, go with the detached. If this is your principal residence you should focus more on what you will personally enjoy more, not appreciation IMO (which can be hard to predict).

Now that being said...it may be different in your location but where I live (Ottawa suburbs) townhouses have appreciated more than any other asset class in the last couple years. Millennials seem to like townhouses because they offer better value (as in $ per square foot, you can get a much bigger/more upgraded townhouse for same price as small detached) and they don't seem to mind the attached neighbours (plus the detached these days are so close to each other anyways). Retirees like townhouses as a downsize option because it's less maintenance than detached. The lower price point means it's affordable for more people.

All of these factors resulted in townhouses exploding in popularity and price. (Detached did well too though, after all in hot markets you'll make money no matter what.)
Last edited by jk9088 on Jul 7th, 2020 6:36 am, edited 1 time in total.
[OP]
Newbie
Oct 6, 2007
72 posts
10 upvotes
Mississauga
jk9088 wrote: ^ Agree, without knowing any other info and assuring price is similar I would personally go with the townhouse with bigger square footage, but that's because I want more space for kids. And I figure since I spend most of my time in my house indoors, the better layout is more important to me. If you are single or a couple with no kids and don't need that extra space, but value less noise from neighbours or more yard space, go with the detached. If this is your principal residence you should focus more on what you will personally enjoy more, not appreciation IMO (which can be hard to predict).

Now that being said...it may be different in your location but where I live (Ottawa suburbs) townhouses have appreciated more than any other asset class in the last couple years. Millennials seem to like townhouses because they offer better value (as in $ per square foot, you can get a much bigger/more upgraded townhouse for same price as small detached) and they don't seem to mind the attached neighbours (plus the detached these days are so close to each other anyways). Retirees like townhouses as a downsize option because it's less maintenance than detached. The lower price point means it's affordable for more people.

All of these factors resulted in townhouses exploding in popularity and price. (Detached did well too though, after all in hot markets you'll make money no matter what.)
Great insights! Price is the same for both and under 800K. The appreciation is important as it's only a 4-5 year house as we plan to try and upsize at that point. We do have kids however.

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