Individuals who are planning to purchase property often have a hard choice to make: What type of home should I buy? Should I purchase a house or a condominium?
It is the dream of many to be a homeowner. When you buy a house, you own the house and the land that it’s situated on. In general, houses have good resale value and increase in value over time. Housing costs are usually predictable if you have a fixed rate mortgage. A house also offers owners privacy and the freedom to renovate according to one’s wishes.
The downside of buying a house versus buying a condominium is that houses are typically more expensive. Houses usually lack the amenities that condominiums offer. If a house is located in a suburban or rural area then you will likely need a car to move from one location to another. In contrast, condominiums are often located near major transit routes close to public transportation. Some condominium buildings even have convenience stores and supermarkets within the building or close-by.
There are many benefits to buying a condominium in Ontario. One of the major advantages of buying a condominium are the available amenities that house buyers would not receive. Many condominiums include fitness centres, swimming pools, guest suites, party rooms, front desk service and/or security and visitor’s parking. Another major benefit to buying a condominium instead of a house is that, generally, condominiums are less expensive. The property taxes also tend to be lower than for detached homes.
The downside of condominium living is that you will pay a monthly fee. The fee is charged for keeping the common elements in a good state. Monthly condominium fees can range. It depends on the amount of amenities that are offered and also the age and state of repair of the building.
Condo owners also have to be aware of special assessments. The condominium corporation maintains a reserve fund that pays for major repairs. A portion of the monthly condo fees are allocated to that fund. In situations of unexpected major repairs or reserve fund shortfalls, the repair fund may be insufficient. In that case, the condo can charge owners extra fees to cover the shortfall.