There are a number of major differences between purchasing a Condo and a house in terms of what you get and the responsibilities you assume. In general, you gain more benefits from owning your own home, but this also comes with added responsibilities.

Taking care of your home will ultimately fall back on you, whereas condo maintenance is up to the owners of the building. Therefore, when you own a home there are more financial and time responsibilities.

Hidden and Extra Associated Costs

Unlike a condo, a home comes with a number of additional fees before you get possession, including carrying, insurance, and closing costs.

Carrying Costs

The costs associated with purchasing a home do not end at the home itself. You will need to make a number of other purchases and will have more recurring costs associated with home ownership.

Utilities, including heating, hydro, and water, are all part of your expenses and can change from month to month. On top of this, there are potential repair and upkeep costs, including costs associated with replacing the roof, windows, your furnace, and other applications that are required for regular operation of your home.

Condo ownership can be a great way of avoiding these responsibilities while still gaining many of the benefits that you’d get with a home. As long as you live in a unit that have all of the utilities and features you’d like, these will be the financial responsibility of the condo owner rather than you.

This means that you will just be responsible for condo fees instead; which is still more financially beneficial as it is a fixed rate rather than a fluctuating amount.

Insurance Costs

Whether you own a condo or home, you will require insurance for your Property. Although both require this, condos generally have lower insurance costs in comparison to a home. Depending on the structure, your fees may even incorporate insurance costs.

When owning a home, you will always need to have insurance and will need to make sure that insurance covers all of the things you will want protected.

Closing Costs

Many people forget that purchasing a home requires you to pay closing costs. Although they make up a small percentage, this can be a large sum to pay out. 

In most cases, closing costs for both a condo and home will be similar, including costs associated with inspection, legal fees, and land transfer taxes.

On top of this, condo buyers will need to get a status certificate, which costs some money. When buying into a condo, you are not just buying your single unit; you are also buying into the building which is run by the condo board. 

This group is responsible for managing the shared expenses and funds from your building. It is a good idea to know the reserve funds available at all times, as this can be an indication of potential raises in your condo fees.

Privacy and Public Features

A major difference between home and condo ownership is the amount of privacy and public interaction you get in either. A home affords you a certain level of privacy that is unmatched when owning a condo. 

Your home is an isolated location that gives you benefits like a yard and easy access to the outdoors.

When you are living in a condo, despite having your own privacy, you also share your building with many other tenants. You get access to public services and features that you may not otherwise have access to with a home, such as a pool, party room, or gym.

While you could get these features in your own home, they would be extremely costly. Therefore, condos can provide access to amenities you would otherwise not get. They can also come at reduced costs because you are sharing the fees with the rest of the building.

Control of Property and Responsibilities

A major difference between home and condo ownership is the control of property you have. When you own your own home, you have complete freedom to make alterations to your home as you see fit.

If you want to drill pegs for pictures or tear an entire wall down, you’re able to do this. When making alterations on your condo – even painting your walls – you will need to check with your condo board.

Since you are not responsible for the property, you have more restrictions on what you can and can’t do to the property. While this can sometimes limit you, it also means you aren’t responsible for the property if something happens.

When something is damaged your condo board will be responsible for the repairs, saving you effort and money on repair services and replacement costs.

Choose Based on Lifestyle

When purchasing your first property, deciding between a condo and home will ultimately come down to balancing costs with your lifestyle. There are typically a number of extra and hidden costs associated with home ownership that are not the same when purchasing a condo.

Insurance, closing, and carrying costs should all be slightly cheaper for a condo than a home.

There are also different levels of privacy and responsibility when purchasing a condo or home. If you want more privacy, responsibility, and freedom over your property, then owning a home is most likely for you.

If you want the advantages of public services in a condo, less maintenance and care, and are fine with more limitations over your property in exchange for less responsibility, condo ownership is probably ideal for you.

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