As a record number of condos this fall have flooded into Toronto’s real estate market, there has been a movement of investors selling off their condo properties due in part to rising interest rates and associated costs.

As an investor, understandably, you want to buy a property that provides long-term value with minimal cost.

Etobicoke investment properties are available in a range of designs, including condos and townhouses. Here is a comparison between the two property types and why both are well-suited to investors of any background.

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Condos Are Still Renter-Friendly

Even though there may be a temporary sell-off of condos in certain areas, they are still a renter-friendly property type. For newcomers to the city or people moving to a new area, a condo is still what many renters are looking at.

Townhouses Offer Potentially More Income

Townhouses can be offered at a higher price point and will accumulate value faster than a condo. For this reason, if an investor can tolerate high interest rates and the costs of upkeep, owning a townhouse is likely more profitable than putting together a condo.

Are you thinking of selling a house or condo this year? The resources below are a great place to begin exploring your options:

Condos Are Often In Better Locations

Condo developments are often built based on location. Many condos tend to be located in premium areas of the GTA. Though townhouses exist everywhere, these developments are often placed in less in-demand parts of town.

Townhouses Offer More Square Footage

Price per square foot is an important metric. Whether you choose to treat your investment property as a rental or use it yourself with the intent of selling in the future, townhouses typically carry more square footage, more privacy, more outdoor space, and arguably a better quality of life.

Condos Have In-Building Amenities

Condo buildings are often filled with a dozen or more key amenities. This might include a gym, pool, social room, recreational features, security features, and more. Especially if security is a concern, measures such as concierges and security guards are important in a condo development. This reinforces a condo’s value in a way that townhouses do not have.

Townhouses Target Families

As townhouses are larger, have multiple floors, outdoor areas, and added square footage, you’re more likely to receive offers from families with a higher income.

Condos or townhouses can also be great options for first time buyers! Speaking of which, here are some helpful posts if you’re planning a purchase this year:

There Is More Seller Interest In Condos

Condos are considered a gold standard for first-time homebuyers entering the real estate market. Condo sales increase year-over-year at higher rates than townhouses. For many, townhouses are a sort of middle ground wherein it’s not a condo but also not quite a detached house, either.

Both Have Less Upkeep Than Detached Housing

Condos and townhouses both carry less maintenance than semi-detached or detached housing. In a lot of cases, condos and townhouses are newer builds, and both are often included in associations that oversee much of the maintenance and upkeep.

Condo Vs. Townhouse: Both Are Excellent Investment Properties

Condos and townhouses can both be premium investment properties, with the right value mechanisms backing them up. In popular areas, such as South Etobicoke, as the neighbourhood increases in value, so do all properties in it.

Condos and townhouses attract different buyer profiles. Both have benefits to weigh. Condos are easier for most investors as they require less upkeep and maintenance over time. That said, townhouses provide a range of advantages that condos do not offer and may be preferred by some renters or buyers searching for space and privacy.

Search investment properties in South Etobicoke with the help of Adrian + Andrea, the real estate team with the expertise to help you find the right condo, townhouse, or house for your portfolio and requirements. Have questions? Reach out to us today at (416) 319-6893 or info@adrianandrea.com.