Why Owning A Conventional Townhome Will Save You Money
Bare land townhomes have become more popular recently as the words "condo fees" seem to intimidate people. In short, bare land townhomes mean that you are responsible for the entirety of your townhome, including the exterior walls and the property that your townhome sits on. This means that you will be responsible for all the damage to your home or the surrounding, exterior maintenance including snow removal and lawn maintenance, and much more that you wouldn't have to worry about with conventional townhomes.
Townhomes with condo fees typically have a higher historical resale value than bare land townhomes. The main reason being is that your home is professionally and responsibly maintained. It also offers a lock and leave lifestyle, where everything is taken care of for you outside of your four walls (what happens if your neighbour decides they want to paint their townhouse pink and not maintain their yard?). By having these condo fees not only do you protect the value of your home, but you increase the resale value an average of 6% compared to bare land townhomes.
Bare land ownership may sound great in theory, but there are many unspoken expenses that need to be accounted for in your monthly budget when buying your bare land townhome. Below are 8 expenses that are covered in condo fees, which you’d be responsible for paying separately, and likely at a higher rate due to the one-off contract nature of bare land ownership.
LANDSCAPING, IRRIGATION AND REPAIRS Lawn maintenance including snow removal, mowing and watering, gardening, as well as the additional maintenance and repairs to equipment. Factor in the expense of buying and running a lawn mower, shovels, weed pickers, expense to water your lawn, etc. Bare land townhome estimated monthly cost: $50
WASTE REMOVAL Waste removal & recycling pickup. There is a mandatory city fee for garbage, recycling and compost pickup. Bare land townhome estimated monthly cost: $20
CLEANING FEES Cleaning of common areas including exterior window cleaning, common living spaces and entrances. Bare land townhome estimated monthly cost: $30
MAINTENANCE Repair and maintenance such as lighting in common areas like entrances and garbage room. Bare land townhome estimated monthly cost: $15
COMMON AREAS Common area utility costs. Bare land townhome estimated monthly cost: $10
BUILDING INSURANCE Replacement value insurance (excluding content insurance which must be paid separate in a conventional townhome). Bare land townhome estimated monthly cost: $50
CAPITAL RESERVE FUND Capital reserve fund contribution and capital reserve fund study fees. This means that if something needs to be fixed, repaired or replaced throughout the exteriors and common areas of the building, the reserve fund will cover it, instead of having to pay out of pocket. Without this fund, we recommend putting aside at least $50/month. Bare land townhome estimated monthly cost: $50
MANAGEMENT Property management fees. These are included in conventional condo fees, but not specifically applicable to bare land ownership. Bare land townhome estimated monthly cost: $0
Monthly bare land townhome estimated ownership cost: $225.00
Montly condos fees at Yorke Townhomes: $142.00
By owning a coventional townhome, you not only have peace of mind in case of an emergency and a higher resale value when selling, but it could also save you over $1000 every year.
Please note that these costs are estimates and for discussion purposes only. We recommend that you do your own evaluation of both costs to see which option works best for you.