Freehold Homes vs Condos - What You Need To Know Before You Buy

As condos become more popular in the Canadian real estate market, my team and I field a ton of questions about the difference between buying into a condo and owning a freehold home.

Here's a quick breakdown:

Freehold Homes

You own the property. You make the decisions regarding what you do and when, with permits and bylaw in mind, of course. You have full control but also have full responsibility when it comes to your home and the property it sits on.?

Condos

You are buying into the corporation that owns the piece of property and the condo building itself - you buy a unit in that building. You typically get shares in the corporation and voting rights. You have some freedom over what you do inside your unit on a surface level, paint, flooring, kitchen cupboards etc. But, it’s important to note that you generally do not own or have full control over the plumbing and electrical, requiring access and approval to work within those areas. You may also have other restrictions, referred to as by-laws, such as pet size or common area regulations, noise rules etc.?

What to consider when weighing your options

Maintenance

In condos, the exterior work, snow and lawn maintenance are taken care of for you. When you own your home, you’re responsible for all of that - or responsible to pay someone to do it for you :)

Condo Fees

While many shoppers get sticker shock from condo fees, the advantage to them is that your condo fees build a reserve fund that covers the maintenance costs that may otherwise sneak up on you when you own a freehold. Maintenance costs for your freehold will likely balance out over time to be equivalent to a condo fee payment each month anyway. Something to consider.?

Control

When you own a freehold, you decide what gets done and when. The only vote required is your partners :) In a condo, all maintenance is voted on - which means you give up some control over when things get done, how they get done, and when.

Community & Lifestyle

Are you social, like people and enjoy the unique community setting that a condo offers? Stroll down the hall for a glass of wine with a neighbour. Run to the gym in the basement or hop in the heated pool! Or, do you like to have your own space and a bit of autonomy?

Price

Condo will generally be more affordable than freestanding homes, especially when comparing options within the same area.

There’s a lot to think about when shopping for a home or a condo! The Mortgages With Sue team is here to educate and help plan so you can make the decision that’s right for you.?