Real Estate

resale value of 2 story vs 3 story towns

  • Last Updated:
  • Jul 1st, 2020 1:07 pm
[OP]
Member
Sep 16, 2017
381 posts
296 upvotes

resale value of 2 story vs 3 story towns

I think I have had to re-evaluate purchasing a detached right now and take less risk. was wondering which type of towns have better resale value?

thanks for the input!
10 replies
Deal Addict
Jan 19, 2008
1572 posts
1350 upvotes
Etobicoke
I think it depends on square footage/numberof bedrooms , not number of floors.
Deal Expert
Feb 29, 2008
19097 posts
17432 upvotes
Tarrana & The Ri…
Good question. As townhouses have gotten popular, there are several different types of townhouses now. I wonder which ones are more popular.

Stacked townhouses
2 storey traditional
3 storey
townhouses with rooftop patio and parking at rear with no backyard
townhouses with backyards, etc....

3 storey used to be undesirable but I'm seeing them with elevators now. You also tend to get bigger bedrooms since they're on separate floors.
[OP]
Member
Sep 16, 2017
381 posts
296 upvotes
JayLove06 wrote: Good question. As townhouses have gotten popular, there are several different types of townhouses now. I wonder which ones are more popular.

Stacked townhouses
2 storey traditional
3 storey
townhouses with rooftop patio and parking at rear with no backyard
townhouses with backyards, etc....

3 storey used to be undesirable but I'm seeing them with elevators now. You also tend to get bigger bedrooms since they're on separate floors.
a traditional town with 3 stories, i get people telling me oh the stairs but truthfully, for a younger family, i think the stairs arent really an issue. the more space is also really nice as the house is spread out over 3 floors like you said.
Deal Expert
Feb 29, 2008
19097 posts
17432 upvotes
Tarrana & The Ri…
MasterBD wrote: a traditional town with 3 stories, i get people telling me oh the stairs but truthfully, for a younger family, i think the stairs arent really an issue. the more space is also really nice as the house is spread out over 3 floors like you said.
I bought a 3 storey. I don't mind the stairs...still in my 30s....not for long though Grinning Face With Smiling Eyes
Sr. Member
Nov 25, 2009
646 posts
378 upvotes
Vancouver
Just get something with two full baths. I see so many with one full bath and one toilet+sink.
Deal Addict
Nov 13, 2013
3806 posts
2361 upvotes
Ottawa
MasterBD wrote: I think I have had to re-evaluate purchasing a detached right now and take less risk. was wondering which type of towns have better resale value?

thanks for the input!
The mythical resale value is not really clear. The differences are baked into the current value and predicting what will trail or lead market gains is very difficult. Sure one bathroom units might lag but you are likely already getting a steep discount for buying such a unit. I think too many people buy what they don't like "for resale". If it's a straight up investment remember you make your money on real estate when you buy. In other words get a good deal on a purchase and the future sale will take care of itself.
Member
Jul 2, 2018
309 posts
299 upvotes
It's hard to predict the future. The difference in pricing that you see now will probably remain at the time of sale.
I think you should focus on the value to your family, which one suits your families needs and adds to your happiness?
Realtor + Investor
Deal Addict
User avatar
Nov 1, 2001
1150 posts
470 upvotes
Toronto
I've noticed 3 story feels more cramped and return old smaller. But they're more modern and newer. Take up less land so new builds look to go this direction
Deal Addict
May 23, 2017
1357 posts
1343 upvotes
fogetmylogin wrote: The mythical resale value is not really clear. The differences are baked into the current value and predicting what will trail or lead market gains is very difficult. Sure one bathroom units might lag but you are likely already getting a steep discount for buying such a unit. I think too many people buy what they don't like "for resale". If it's a straight up investment remember you make your money on real estate when you buy. In other words get a good deal on a purchase and the future sale will take care of itself.
Great advice! OP if buying for your principal residence, focus on what best fits your budget and preferences.

That being said, currently I do find traditional 2-storey townhouses are definitely in higher demand in my local market (Ottawa suburbs; people who can't afford 2-storey will tend to be the ones purchasing a 3-storey). Your local market may be different. Just because they are not as popular however, does not mean you will not see good monetary returns--few years ago I purchased a 2-storey and a 3-storey on the same street (for rental properties). Because I purchased the 3-storey for much cheaper (builder dropped the prices back then as the units were not selling), I'm pretty sure it actually gained more %-wise compared to the 2-storey. There may be less people interested when it comes time to sell, but price-wise I think the growth will end up being better in my case.

There's also the fact that different segments gain popularity at different times and past history does not necessarily predict the future. It could very well be that as 2-storeys become more expensive and unaffordable in my area, more and more people will gravitate towards 3-storey as those fit better into their budget. So who knows, maybe by the time I sell the 3-storey will actually turn out to be more popular?
Sr. Member
Jun 2, 2017
763 posts
381 upvotes
lawonga wrote: Just get something with two full baths. I see so many with one full bath and one toilet+sink.
+1.

Ideally a bathroom on each floor and 2 baths.

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