Should you buy a house or a condo? In today’s blog we discuss the pros and cons of buying a house in compared to a condo. If you are an end user and looking to move in to the place yourself, then its all personal preference of course. But if you are an investor and wondering which one will be the better investment, check out the pros and cons below!
More Options For Improvement: with a house, you have more options. If your long term goal is to create a triplex out of it, you are able to apply for a permit from the city and get that done. Whether you want to add bathrooms, add an extension or add another floor on the top, with a house its a possibility.
Control: owning a house over a condo means that you aren’t limited to the condo boards rules and regulations. You are the captain of the ship.
Higher Price Tag: it is generally more expensive to buy a house over a condo so this means higher mortgage payment and higher downpayment.
Higher Ongoing Costs: it will be more expensive to carry a house over a longer period of time. From garbage, water and utility costs to insurance, it will take more money out of your pocket over time than a condo will.
Repairs: in a house its harder to predict repairs and can get expensive fast – whether that’s replacing a roof, getting new water drains, dealing with a flooded basement or calling in a plumber or electrician.
Ongoing Maintenance: for a house can be onerous, from managing pest control, furnace and air conditioner maintenance, window washing, snow removal, gardens and more. House maintenance isn’t just about money – it takes time too.
Less Expensive: it’s generally less expensive to purchase a condo. Condo prices are going up but condo’s are still less expensive than purchasing a house. For first time buyers, first time investors or even savy investors, condos have been the new hit point.
Low Maintenance: With the condo board responsible for most of the building’s mechanical systems and the ongoing maintenance of things like window cleaning and snow removal, owning a condo as an investor is relatively easy.
Predictable Repairs and Maintenance Costs: with a condo, the board performs regular studies about what needs to be fixed and costs are planned for and shared among residents so you’ll always know when repairs and maintenance is happening in the building.
Rentability: most new developments are being built in prime location, close proximity to transit, close proximity to the best amenities in the neighbourhood and to employment opportunities so it becomes relatively easy to rent a condo to a good quality tenant.
Maintenance Fees: condo maintenance fees range anywhere from 0.60-1.00/sqft. Condo maintenance fees can increase over the years and can get relatively expensive as years go on.
Condo Rules: condo boards may control how you rent your unit. Some buildings allow short term rental but some don’t allow short term rental. So essentially, you’d have to follow the condo boards rules in how you rent your unit.
Hope this helps you with your search! Both houses and condos have their own pros and condos. It all depends what works for you. If you want some more insight, feel free to contact us!