The Pros and Cons of Investing in Stacked Townhouses
Love them or hate them, there's no denying that stacked townhouses are popping up everywhere in Toronto.
Before you make the decision to invest in stacked townhouses, here are the pros and cons.
1. Simple economics
This is basic supply and demand. Supply is low because it's much more economical to build a skyscraper with numerous condo units. This makes the demand for stacked townhouses relatively high. There are fewer around, yet they are much more appealing to many home buyers and renters. This is especially true for couples with kids and pets, where more space is needed.
2. They are similar to houses
There is no lobby, concierge or common area. Instead, stacked townhouses have their very own front door. In addition, they are usually spread across two levels, with bedrooms one level up from the living room, dining room and kitchen. This gives it the feel of a house, which is very appealing to many buyers and renters.
Not only do stacked townhouses have more interior space than condos, but they also offer more outdoor space. This can be either a rooftop terrace (if occupying the upper levels of the building) or a patio in the front. These usually come equipped with gas lines for a barbecue and water lines for a garden. Some stacked townhouses even have a backyard!
Having a front door already means that there is more privacy with stacked townhouses than you would find in a condo tower. There is no hallway, elevator or stairwell that needs to be shared with other tenants, which results in more privacy.
1. No amenities
Ones of the perks of a condo is the many different amenities, which stacked townhouses generally aren't able to offer. Instead of contributing to these amenities, maintenance fees go towards outdoor maintenance and the reserve fund that is to be used in the event of major repairs. This includes things like roofs, pipes, eaves and whatever else may need repairing or replacing over the years.
2. Too many stairs
There are a lot of stairs in a stacked townhouse. In fact, some stacked townhouses have three sets of staircases. Tenants on the upper levels will face one set of stairs after stepping through the front door, another staircase from the living space up to the bedrooms, and a third leading to the rooftop terrace. For some home buyers and renters, this could simply be too many stairs, especially for older people looking to downsize from their current house.
3. Small living/dining space
While often larger than those in condos, the living and dining spaces in some stacked townhouses are relatively small, especially when compared to those of a house. What you lose in indoor living space you often gain in outdoor space, so it's a bit of a trade-off.
If you're interested in investing in stacked townhouses, Signet Group can help!