Tuesday, January 26, 2021 / by Lino Arci
Should You Invest In A Condo Or A House?
There are three primary housing situations available: purchasing a condo, buying a house, or renting an apartment. Each has its benefits and drawbacks. Take a look at the advantages of each—which are also usually the disadvantages of the others.
Condos are less expensive than Houses
- The average condo price is less than the average GTA house price
- A lower price means a lower down payment and a lower monthly payment.
No repairs and maintenance on the exterior
- While homeowners are busy mowing their lawns, painting the house, trimming hedges, cleaning gutters, raking leaves, and shoveling snow, condo owners are busy hanging out at the pool, taking weekend trips, or simply relaxing at home.
- The exterior of a condo is owned by the homeowner's association (HOA) and maintained both. The owner takes sole responsibility for the interior. But anything outside the front door is of no concern to them. That free up time (and money) for other endeavors.
- Larger quarters in condominiums are frequently filled with shared facilities. This could involve swimming pools, tennis courts, gymnasiums, golf courses, park areas, pet parks, and trails for jogging.
- Since condos are smaller, and packed more tightly, they are also closer to amenities. Condo owners also have shorter commutes than homeowners, who live more usually in rural suburbs and outlying areas.
Advantages of a House to a Condo
- Having some Land
- Technically speaking, owning real estate entails land. By definition, condos don’t have it while detached houses do. It's one of the prime benefits of owning a home. Yes, we need to maintain the property. But you can build a private pool, create a garden and host backyard parties.
Greater self-determination and self-expression
- Uniformity is one of the inherent disadvantages of a condo. Since you don't own the home's exterior, there's absolutely nothing that you can do about it. A house is a whole different story. It is easy to customize a home, in a way a condo never can.
More improvement opportunities
- If one of the ways you want to raise your ROI investment is by upgrades, a house may offer more options, whether it's adding bathrooms, finishing the basement or adding extensions.
Generally easier to sell than a condo
- Literally speaking, a condo can be a tough sell in a bad housing market. For the most part, a condo is a substitute house. They’re the kind of property people buy only in the most robust markets. But detached houses on privately owned lots tend to be more liquid in all kinds of markets.