Deciding Whether to Buy a House or a Condo

Posted by Andrew St. Hilaire on

March 7, 2021

Deciding whether to buy a house or a condo may be an easy decision for some, but for others, there may be factors that make this decision more difficult. There are pros and cons to each considering resale value, amenities, convenience, and space.

The best approach for deciding is to identify what's most important for you as far as goals, lifestyle, and budget. An experienced REALTOR® will help you to make an informed decision by helping you focus on the things that matter the most for you and looking at the options available in your desired market which will make deciding between a house or a condo easier. You can start by entering your search criteria here to see all the available listings that match your needs and wants between houses and condos in your preferred neighbourhoods.

What types of condos are there?

There are two main types of condos on the market, freehold and leasehold.

Freehold condos include buildings divided into units, row townhouses, and standalone townhouses or homes. Within these freehold condos, there are standard condominiums where you will buy your unit with an interest in the property's shared common areas and elements, but you won't own the land. Common elements condominiums have no units but you own the property and the land on which it sits. Owners within the common elements condominiums community share the ownership of common elements, and they fund their maintenance and repair jointly.

Leasehold condominium corporations don't own the land in the condominium corporation, but the lease purchasers buy a leasehold in units and common elements.

Which costs more: a house or a condo?

In most markets a condo is more affordable than a house in the same area, because with a standard condominium you're buying only a unit in the building without any of the land. The size of the price gap varies, and it can be wider in cities like Toronto and Vancouver, but the gap may not exist at all with a common elements condominium, where you own the property and the land it sits on.

The difference when buying a standard condominium compared to a house is that you're only buying a unit in a building without any of the land. Other kinds of condominiums may be different though.

Most of the time, a condo is more affordable than a house in the same area, but this gap can be wider in some markets, and may not exist at all if it's a common elements condominium. Sacrificing a convenient location in certain cities like Toronto and Vancouver, for example, will significantly influence your decision for a house or condo. The choice is much easier in Winnipeg.

How do ongoing expenses compare?

Condo owners pay monthly fees for services, maintenance, and amenities, usually based on the size of the unit and the number of units in the building, with higher fees for luxurious amenities like a pool, gym, or 24-hour concierge. In exchange, those fees generally cover repairs in the building's common areas, costs a homeowner bears alone. Insurance rates and utility bills for heat and gas are also typically much lower for a condo than for a house.

Condos include monthly fees to pay for certain services, maintenance, and amenities. These are usually based on the size of your unit and the number of units in the building. Some condos offer luxurious amenities, like a 24-hour concierge, pool, gym, sauna, theatre, and even a bowling alley. Of course, your condo fees will be higher with the better amenities being offered.

The condo fees generally cover the costs when anything break inside the common areas of the building. Obviously, homeowners bear these costs on their own.

Typically, insurance rates for a condo are much less than for a house and utility bills for heat and gas are also generally less with a condo.

Who handles maintenance in a condo vs. a house?

Maintaining the yard, snow shovelling, seasonal repairs are not your problem with a condo so if you hate these chores, a condo might be a good fit. Houses require a lot more work in general.

How do location and lifestyle differ?

Condos usually offer central, convenient locations with an easy commute and access to public transit, restaurants, and shopping, which suits professionals who prioritize those conveniences over a back yard or extra living space. If you have children or plan to soon, a house's advantages in living space, yard space, noise, and privacy compared to a condo may weigh more heavily in your decision.

Condos usually have central and convenient locations to give owners an easy commute and easy access to public transit, restaurants, and shopping. Professionals may decide these conveniences are a priority over having a back yard of their own or more living space and would prefer to enjoy their free time without performing any maintenance on a house.

If you have children or plan to have any soon, considering living space and yard space, noise, and available privacy in a house compared to a condo may be important.

Which gives you more freedom?

A house generally gives you more freedom. Condos come with rules set by the condo board that all owners and tenants must follow, and these can limit how many pets you're allowed and what kinds, prevent smoking, restrict visitors in certain areas, prohibit renting out the unit, and even prevent having a BBQ on your patio, among other limitations.

Condo boards have rules that all owners or tenants need to follow. These rules may limit how many pets you're allowed and what kinds, prevent smoking, restrict visitors in certain areas, prohibit renting out the unit, prevent having a BBQ on patios, among other limitations.