What is the difference between a condo and a townhouse?

Entering the real estate market as first time homebuyers is both exciting and duanting. Beyond choosing where you want to live, and your property budget, one of the main decisions you'll need to make is the type of property, you want to live in.

Although not everyone is able to move directly into a detached single family home, condos and townhouse communities are a great way to get into the market. If you're considering a condo or townhouse, you may have some questions about what owning one entails and what exactly the differences are between these two types of properties.

If you want to learn more about condo owners vs. being townhouse owners, stick around to find out more below!

What is the definition of a townhouse?

A townhouse is a type of single family home that is part of a row of similar units. Each townhouse will share one or two walls with the unit that is directly next to them. However, each townhouse is individually owned and the ownership extends to not only the interior living space, but the land that the structure sits on, typically the front and back yard.

What is the definition of a condo?

On the other hand, a condo, also known as a condominium, is a type of ownership where a person owns an individual unit within a building. Condo owners also own a portion of any common areas and amenities that are shared with other owners in the complex. These jointly owned spaces include fitness centres, meeting rooms, the lobby, hallways, elevators, outdoor areas, and other common amenities.

Protect your condo with the right insurance coverage. Contact BrokerLink today for a quick and easy condo insurance quote and ensure your investment is secure. Reach out to us today to get started!

Get a condo insurance quote

What is the difference between condos and townhouses in Canada?

Now, here's the real question: what exactly makes condo buildings and townhouses different? While both have many similarities, there are some notable differences that potential buyers need to be aware of, including the following:

Condo: key things to consider

Key differences to consider when purchasing a condo:

Condo ownership

Being a condo owner means you own the interior of your actual unit and share part ownership of any common areas and amenities with other residents who live in your building.

Building structure

Condos tend to be similar to apartment buildings, seeing as they are often one or multiple buildings within a complex. Each building has numerous floors and multiple units within it that people either own or rent out to others.

Common spaces

Shared common areas in a condo building often include lobbies, hallways, elevators, recreation areas, and sometimes the surrounding gardens around the building's exterior.

Maintenance and repairs

All maintenance and repairs are managed by a condo association, which collects condo HOA fees each month. These monthly fees are sometimes referred to as strata fees and are owed by all residents in the building on top of your monthly mortgage payments.

Townhouse: key things to consider

In the following section, we will outline the essential differences buyers need to keep in mind when purchasing a townhouse:

Townhouse ownership

Townhouse owners own their individual units and the land that their townhouse sits on, such as a front and back yard, depending on the complex.

Building structure

Townhouses, also known as row houses, often have multiple stories connected side-by-side. They share walls with their neighbours, whether on one or both sides. The property itself has more square footage than a condo but is smaller than a traditional house.

Common spaces

Townhouse communities tend to have fewer amenities than what is offered by a condo complex. Sometimes, however, they offer tennis courts, playgrounds, private gyms, and a clubhouse.

Maintenance and repairs

A townhouse may also have its own version of homeowners associations that manages shared spaces. However, if you live in a townhouse freehold, you are responsible for maintaining your living space and the exterior property.

Overall living experience

Living in a condo versus a townhouse can be distinguished by several key aspects, including:

• Community living in a condo is more effortless as you'll be sharing amenities and other areas on the property with your neighbours.
• Townhouses offer a nice balance between single-family homes and living in a community. Townhouses typically suit young families or those who want more freedom and space.

Privacy

Privacy is a significant factor that sets condos and townhouses apart for the following reasons:

• Condos tend to have less privacy than townhouses due to the shared walls, floors, and ceilings.
• Townhouses have more privacy than condos, given that they are only sharing walls with their neighbours, not the floor or ceiling as well.

Location

Location differences between condos and townhouses can significantly influence your lifestyle and convenience for the following reasons:

• It is commonly found in urban areas where the population is denser. They are often built near shopping centres and transportation hubs.
• You can find townhouses in urban areas and suburban neighbourhoods, which offer more space and sometimes a small yard or garden as well!

Finances

There are several financial distinctions to consider when purchasing a condo versus a townhouse, including:

Upfront and long-term costs

Condos often have lower purchase prices than single-family homes and townhouses in the same area. However, HOA fees can be higher and usually cover maintenance, amenities, and sometimes utilities. Condo owners also have to pay property taxes.

Generally, townhouses are more expensive than condos. However, they are less costly than single-family homes. If you do have monthly HOA fees, they tend to be more affordable than those paid to a homeowners association in a condo. Both a condo and a townhouse pay property taxes.

Insurance coverage

Condo insurance covers the interior of the unit, personal belongings, and liabilities, while the condo association's insurance covers the building and areas shared by residents.

Townhouse owners need more comprehensive insurance covering the interior and the home's exterior.

How each property is governed throughout the year

In this section below, we will explore how governance impacts the living experience in condos and townhouses throughout the year:

• Condos are often governed by a condo board or association with rules and regulations for residents to follow. These HOA rules can cover everything from noise levels, short-term rentals, pet policies, and more.
• Townhouses may have a homeowners association, but the level of control and the rules implemented to residents can vary.

Fees

In Canada, fees are a significant distinction between condos and townhouses. Understanding the fee structure is crucial when considering which property type best fits your financial situation and here's why:

• Monthly condo fees are mandatory and cover the cost of any maintenance, repairs, and money or the reserve fund.
• If the townhouse does have management, they tend to have lower HOA fees than condos. Again, these fees go to maintenance, repairs, and other costs.

What is the advantage of a townhouse over a condo?

Both condos and townhouses have benefits. However, there are some advantages to owning a townhouse compared to a condo. These advantages include:

• Townhouses offer more privacy than condos do, because they only share one or two walls with their neighbours, rather than the ceiling, floor, and walls like in a condo.
• Townhouses often provide more living space, including multiple floors, which is better for families and individuals that are looking for more space.
• Many townhouses come with private front and backyards, offering more personalization to your indoor and outdoor living space. It's also great if you have pets.
• Townhouses usually have individual entrances, so you won't have to wait for an elevator, making life more convenient.
• If you own a townhouse, you often have more say over what you can or can't do within your actual unit in terms of renovations and upgrades.
• Townhouses have fewer fees than condos do.
• Townhouses often have more property value than condos do, meaning you can grow your investment over time.

At the end of the day, it really comes down to what you're looking for in a property and your overall spending budget. Both types of properties offer benefits and drawbacks, so make sure you research each in detail before making a decision about which one to purchase.

What is the difference between a row townhouse and a condo townhouse?

A row townhouse does not have an HOA, which is a key difference between a condo townhouse. Owners typically have more control over their property and fewer restrictions. A condo townhouse is a part of a condominium association and tends to have more amenities, fees, and regulations.

How is condominium ownership and townhouse ownership similar?

Condos and townhomes are similar because they both involve owning a specific unit within a larger community or larger building.

Condo fees and townhouse fees are often paid to an HOA on a monthly basis and this money is put toward maintenance, repairs, and other shared services like landscaping, security, and sometimes utilities.

Additionally, both condo and a townhouse owner must follow community rules and regulations outlined by HOA, even though the overall rules and regulations will be different between the two types of properties.

Protect your property with high-quality home insurance with BrokerLink

Do you own a condo or townhouse? Get high-quality insurance solutions for your property to protect your home from unique insurance risks with the help of the experienced brokers from BrokerLink.

Visit us in person at one of our locations across Canada to work with a broker from our team. If you can make it in person, give us a call directly over the phone during regular business hours! Alternatively, you can use our online quote tool to get customized, competitive insurance quotes from the comfort of your own home!

Get a home insurance quote [phone]