Townhome condominiums are an entryway for people to move from rental apartments, as first-time buyers or down-sizers, into homeownership without having to have the added obligation of outside home maintenance, as common areas and building exteriors are managed by the strata management, usually for a fixed maintenance fee, either per unit or per square foot of townhome size.
Stacked townhome condos are in a building of usually 4 storeys and each townhome will have 2 or more floors of living space. The units themselves are generous with space and floor plan design, providing room for growing families and young couples.
On-site amenities will vary according to the site plan, but often include underground parking (which is very appreciated come winter in Toronto) and open spaces for children.
Often considered a starter-home that is a step above an apartment condo, the buyers are generally young families with plans to put down roots in one home for an extended period of time.
In 2016 Toronto year-to-date sales (PDF) reported have shown a steady monthly (improving seasonally) average of units sold when condos and condo townhomes are compared to other housing types. We also see a monthly average price increase of 7% from January to May 2016 for condo sales and 14% for condo townhomes. These numbers also are the same for year-over-year appreciation from May 2015 showing us that the return on investment is stable for the average condo and condo townhome investment.
How good is a stacked townhome condo as an investment choice?
This year townhome condo prices have risen an average of 14% year-over-year from May 2015.
The percentage of sales volume is quite steady month-to-month, showing that there is consistent demand for these types of homes throughout the year. Any season can be selling season.
As a rental property the townhome condo is in high demand, and fetching higher rents, offering the luxury of the semi-detached home lifestyle to the affordability of a condo without the maintenance hassles for tenants and a managed property space for owners.
Generally, a townhome condo property for investment is purchased with 20% down, but depending on the final price and rental income your own ROI may vary. I often see returns above the 15% range for my clients.