home owners & real-estate gurus: condo vs townhouse in toronto?

[paradigm]

What would you consider for purchase in terms of both convenience as well as ROI:
Condo:
3 to 10 years in age
downtown toronto core (lets say bathurst & lakeshore area or st lawrence market area)
25 min walk/streetcar ride to work
570 sq ft, 1 bedoom, 1 bath
$260000
$300 maintenance fee per month
$1800 year proprety tax

or...

Townhouse:
3 to 30 years old:
Along TTC subway line, say north of toronto (max 3min walk to local TTC station)
25 min door-to-door commute from home to work
1200 sq ft, 3 bedroom, 2bath
$350000
$0 maintenance fee per month
$2900 year property tax
Basement or one floor would be rented for $800/month

Either unit would be mortgaged at 4% fixed for 4 years, 25 year amm. period. I would be living in it. Which scenerio makes more sense, and why? I know I may have left out some critical information, but let me know what you can with what is given. Thank you, I am a newbie to home ownership, so go easy on me.

 

[UrbanVigor]

I'm assuming that you've ensured your affordability for the townhouse and therefore the condo simply affords you more affordability/coverage of the maintenance fees.

In terms of dollars, the condo is a better buy in terms of affordability since the mortgage on the townhouse will be a couple hundred dollars more than the mortgage on the condo + maintenance fees. $0 maintenance fee on the townhouse is a red herring... will you have to mow your lawn, shovel the snow, landscaping, etc.? Property taxes are $1,100 higher than the condo. $456 psf in St. Lawrence Market is very decent. Not sure what the going rates psf are at Bathurst/Lakeshore.

Sounds like your commute is a non-issue with either option.

I think your decision boils down between two things: location and type of dwelling... would you rather live at Bathurst/Lakeshore or St. Lawrence Market or would you rather live in North York (where exactly???).

Would you rather live in a 570 sf condo or a 1200 sf townhome?

If you would prefer to live in a 1200 sf townhome in St. Lawrence Market or Bathurst/Lakeshore then my answer to you is: choose the 570 sf condo. You'll live where you want to live, have more money in your pocket, and I'm sure you can adapt to a smaller space provided the layout is decent. If you choose St. Lawrence Market, you'll still be 3 minutes to two TTC stations not to mention a walk/streetcar to work.

If quite simply your preference is greater space then choose the 1200 sf townhouse in North York.

Still not enough information. For example, what neighbourhood in North York are you referring to? Yonge & Eglinton is a far cry different than Yonge & Sheppard.

As far as downtown is concerned, are you looking at Context's Market Wharf and Library District, by chance?

 

[Ric]

What would you consider for purchase in terms of both convenience as well as ROI:
Condo:
3 to 10 years in age
downtown toronto core (lets say bathurst & lakeshore area or st lawrence market area)
25 min walk/streetcar ride to work
570 sq ft, 1 bedoom, 1 bath
$260000
$300 maintenance fee per month
$1800 year proprety tax

or...

Townhouse:
3 to 30 years old:
Along TTC subway line, say north of toronto (max 3min walk to local TTC station)
25 min door-to-door commute from home to work
1200 sq ft, 3 bedroom, 2bath
$350000
$0 maintenance fee per month
$2900 year property tax
Basement or one floor would be rented for $800/month

Either unit would be mortgaged at 4% fixed for 4 years, 25 year amm. period. I would be living in it. Which scenerio makes more sense, and why? I know I may have left out some critical information, but let me know what you can with what is given. Thank you, I am a newbie to home ownership, so go easy on me.

Townhouse by a mile

 

[interested]

Agree with Ric.

From a financial point of view, the townhouse is a way better deal. Provided you are willing to rent the basement and get a tenant and are OK with that arrangement the $10000 you get in rent will go a long way to your mortgage covering. I am assuming you have the downpayment to buy this and the income to support the townhouse. Rules have gotten tighter I understand and the mortgagor if it is a bank may only allow 1/2 of your rental revenue to count towards your income. Some mortgage brokers or others will be able to provide more accurate information.
However, where you want to live is a big factor since as Urban Vigor said, if you want to be downtown then there are some things which are not strictly monetary.

All other things being equal, strictly looking at the money side, I would opt for the townhouse. Note: Depending on where you are looking exactly, you would have to try and decide as well about appreciation. With all the condos being built in the core, I would be concerned about excess supply and that may make it more difficult to sell in the next few years though prices have held so far. Townhouses as a rule don't escalate quite as much out of the core as a condo in the core (at least historically) but it may be time for them to catchup somewhat.

Hope this helps.

 

[lead82]

where does one find such a cheap freehold townhouse in North York and on the subway line? The ones along Yonge or Sheppard go for 600k+

 

[Kenny]

I would try and nail down the age of each building. "3 to 10" and "3 to 30" are very wide spreads. The age of the building will have an impact on whether maintenance fees will rise for the condo or how much you will be paying to maintain the townhome in the near future.

They're pretty close in terms of affordability.

~1800/month for the condo, ~1900/month for the house (I added 2% for maintenance).

570 sq ft is plenty of space for one person, especially if you're the type to enjoy a spartan lifestyle.

You're probably looking at much less than 1200 sq ft if you rent out one of the floors, and townhomes are usually poor at making efficient use of space (since they tend to be narrow).

You're much less affected by rising interest with the condo.

The townhome is "expandable" - i.e. you can always get rid of the renter for more space. You can't do that with the condo.

I think I would base it on lifestyle. If you're the sedate type and likes to spend time at home and you see yourself living with a significant other in the near future, then go for the townhome. If you like to go out and have several drinks with friends, being downtown and having the option to walk (stumble) home is a huge plus. Cab fare will be cheaper, too. Remember, TTC service ends at 1:30am.

Also, assuming you won't have a car, consider the distances to grocery shopping.