With the cost of borrowing (interest rates) so low, a lot of younger home buyers have entered the market and one of the first questions they have to face is whether to go condo or freehold.

Before making an informed decision it is first important to understand the pros and cons associated with owning a Condo, both financially and depending on your lifestyle.  Perhaps the biggest advantage of owning a condo is the limited amount of maintainence that you are responsible for when compared to owning a home, that does however, come at a cost.  Here is a few of the key differences between condo and home ownership:

1) Condo Fees/Maintainence Fees

When you buy a Condominium you are buying ownership to your unit, and also a shared ownership of all the amenities of the building or complex.  The condo fees (sometimes called Maintainence Fees) cover the maintainence of these amenities and may include things such as snow removal, upkeep of landscaping, maintainence of the swimming pool etc.  Some condo fees even include utilities and some level of insurance.

One of the questions I get asked regularly is with regards to the condo fees, however, it is important to consider the money that you would save if you had bought a home:

-Gas/Electric/Water Utility bills
-Home Insurance Maintainence equipment: Lawn Mower, Snow Blower
-Repairs of large items e.g. Roof, Windows etc

By and large these are what the Condo fees cover (this can differ, please consult with your Real Estate Sales Professional for information on any prospective units), and if you start to add them up you will quickly see that the condo fees and the costs of owning a home are not that different.

2) Low Maintainence

Time is our most limited resource.  As we get busier and busier with work and other commitments, we find ourselves with less and less time and the last thing we want to do is spend it shoveling the drive way or cleaning our windows.  One of the biggest benefits of owning a condominium is the limited maintainence.  Young professionals are drawn to condo’s for that very reason.

3) Condo Board and Rules

Your condo building will have a board that is made up of (usually) residents of the building.  This board is responsible for making decisions about the building management.  Each condo will also have set rules and guidelines on things such as the rental of your unit (most condo’s need to be informed if you are doing this), pet ownership (how large can your pets be?), noise restrictions, renovations in your unit (do you need special under padding if you are installing Hardwood Floor?, can you move this wall? etc.)

Make sure you do any homework on the condo building before you make any final decisions.  Here are some things to consider:

a) Talk to the neighbours about what they like and don’t like about the building

b) What are some of the rules and regulations that affect YOU? Is there a pet restriction? Is there a restriction on things like Christmas lights?

c) What comes with the unit? What locker? How many Parking spots?

d) Finally, make sure you have a lawyer go over the status certificate to make sure the building finances are in order.

Once you spend the time to consider the pros and cons, you will find that buying a home or a condo to be a very rewarding experience.  If you are considering purchasing but have some questions, don’t hesitate to contact us!

Until next time,
Roy