Condo convert vs freehold townhouse convert

[TangoWhiskey]

The 20 unit condo conversion project I posted about happens to already be condos. One thing a guy suggested today was converting them all from condo status to freehold townhouse status for individual sale. There are a number of buildings in this complex.



The idea seems worth investigating. What's more appealing to tenants in the 30-40 000 dollar/yr income level? A freehold townhouse RTO or a condominiumized townhouse RTO with a condo fee?



How much cost? The issues I can think of are parking lot, as one big lot is shared, and water, currently on a single master meter. I guess converting them to freehold townhouses would cost some legal $$$, the cost of installing a single meter per unit, but how would you convert from the single big parking lot to multiple driveways? Do a lot of paving and surveying to create individual driveways?



If someone is going RTO anyway I'd think they wouldn't care a whole lot between condo status vs freehold status if they're getting a nicely done unit at a reasonable price.



Thoughts?

 

[Thomas Beyer]

The question is how to pay for common or shared elements, such as parking lot, hedges, tress, grass, roofs etc ...The second question is if you want to allow individual owners to paint different colors on the outside, change windows or add siding. Thus, even if they are town houses there will be some form of agreement that regulates, enforces and funds these issues !!

 

[TangoWhiskey]

Interesting. So effectively even freehold town houses exist under some kind of communal agreement that collects fees, and as you say, regulates and enforces common rules. Any idea how restrictive these covenants are typically? I remember a townhouse community in an Ontario lake town that was adults only so they must be as flexible as the owners wish. These things must be set up by the developer, do you have any knowledge to share there?



Tris