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Pros and Cons of Buying a Condo - Toronto Condo Home
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Pros and Cons of Buying a Condo

Posted by Toronto Condo Home on January 7, 2023
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Condos and apartments can be similar in some ways, including the cost of the rent and other factors addressed later in this post. Knowing the differences would help you have a better understanding of the lifestyles and make the best decision about whether to live in condos or make an investment.

Firstly, you should know that ownership is the main difference between a condo and an apartment. It also affects property management. Its owner’s association usually manages a condo, and each unit has a separate owner. But owning apartment buildings is entirely different. Apartment units cannot be purchased separately. Apartment buildings typically have an owner or, more likely, a corporation (with units rented out to tenants).

Because of this difference in ownership, apartments are managed by a third-party company rather than the building owner. Renting an apartment usually means working with a management company and not the property owner. Another difference is the rules applied by management. The property management company uses powers in an apartment, and the same restrictions apply to all units. According to the announcement of the Housing and Urban Development Department, the most basic responsibilities include the following.

characteristics candos

What Are the Characteristics of Apartment Complex Units?

The units in the apartment complexes have very standard features that are almost the same throughout the community. The facilities of the apartments can include the following:

  • Free Parking
  • Laundry inside the complex
  • Swimming pool
  • Sports hall
  • Community room for conferences and events
  • office
  • Game park
  • Playground
  • Carwash

The Pros of Buying a Condo

Condominiums have benefits and drawbacks, much like other types of housing. When determining whether or not a condo fits with your lifestyle, personality, and financial condition, carefully weigh all of these advantages and disadvantages.

Affordability 

Undoubtedly, the first advantage of condos compared to luxury houses and duplexes is their lower price. According to the National Association of Real Estate in Canada (NAR), the average cost of a condo in Canada has always been lower than the price of a house, which means lower down payments and monthly payments. In addition, buying a condo has other advantages, which we will discuss further:

Covered Maintenance

The cost and trouble of maintenance and maintenance of the public and exterior space of the condos is the responsibility of the building management board, and you will not have any responsibility for these issues. While in villa houses, it brings things like cutting the grass and painting the exterior, repairing front hedges, pruning trees, cleaning gutters, collecting leaves, shoveling snow in winter, ETC.

For its owners; Regarding condos, only the responsibility of maintaining and maintaining the interior of your unit will be necessary, which means less effort and cost for you.

Proximity to Entertainment & Business Districts

Unlike fancy houses, which are often located in the suburbs and peripheral areas, condos are usually built where all amenities are available near the high density of residents. Large apartment buildings are generally found in the center of the city, and residents of condos typically have a lower cost and time to commute than homeowners.

Security 

  • Pay rent on time
  • Maintaining peace and avoiding creating noise for other residents (barking dogs, musicians)
  • Cleaning your apartment, especially around the entrances to each unit
  • Dispose of waste properly

Many condos offer security features such as a call box, doorman, or concierge service. Living among a group of neighbors also feels safe when you’re away from your apartment

Amenities

Usually, there are amenity complexes near the condos or within the building, allowing the condo residents to use them without leaving the living area. Amenities include a swimming pool, tennis court, gymnasium, golf course, park area, pet park, and walking trails.

cando construction

Appreciation 

Living in a condominium has countless benefits and advantages. It makes life easier in general. Apart from being a great investment, condos make everyday life easier and more comfortable. Condos are proof that we have more rights.

Everyone wants their property to increase in value over time, whether they are owner occupiers or absentee owners. In fact, the main reason real estate is more popular than other types of assets is because of its potential and stability. All property assets, including single-family homes, townhouses, and condos, can appreciate.

On the other hand, different forms of assets face different problems, whose valuation speed is influenced by external factors, location, and market trends. While some condos appreciate more slowly than single-family homes, a good unit in a good location offers incredible growth potential.

Cheaper Insurance

The issue of protecting a condo structure is somewhat complicated because even though you own one or more units, you do not own parts of it. To better understand condo insurance, you should first check what is covered by the “homeowners association” (HOA).

Although there is no legal requirement to purchase condo insurance, your mortgage lender and HOA require you to do so. The problem is that not taking care of the damage to your unit will reduce the value of the adjacent units and the entire building. More details related to this issue are included in the condo contract. This insurance is cheaper than other apartment insurances.

Possible Cons of Buying a Condo

Another option that was mentioned in the introduction of this article was about the disadvantages of buying a condo. Sometimes, this option can discourage some people from buying these types of apartments. For this reason, we are going to talk about the disadvantages of doing this so that you can make the best choice for yourself by knowing them:

Association Fees 

The common areas of a condo building are certainly beautiful, but they cost money to maintain. As a condominium resident, you will likely have to pay a monthly fee that goes towards the maintenance and repair of the common areas. There may also be an additional charge for any major renovations in those areas, but you’ll also be able to enjoy these amenity upgrades.

Generally, tenants are exempt from paying maintenance fees. For example, the homeowner must pay for the repair if the home’s heating or plumbing system is damaged.

HOA Fees

Every HOA community is different. When house hunting, it’s important to ask for a copy of the HOA’s rules and regulations, known as covenants, conditions, and restrictions (CC&Rs), so you end up joining an association that’s more restrictive than you want so you know what kind of services to expect. be that your monthly salary covers.

If you’re attracted to amenities like swimming pools, fitness centers, gyms, and landscaping, know that you’ll be financially helping to maintain these features. Some condos have these facilities and fees are paid for them.

Potentially Mismanaged Funds

Since you live in a community that has a board or association that helps run it, you must follow the condo rules. Rules may include whether you may have pets, what types of pets you may have, how and when common facilities may be used, and rules regarding visitors or guests, among other things. You can also choose to participate in your board or forum.

More Rules

Rules: One of the biggest disadvantages of a condo is its restrictive rules. These rules range from garbage collection and noise levels to balcony furniture and the number of pets per unit. Be sure to read the rules and regulations before buying a condo to make sure it is compatible with your lifestyle. Remember that you will be fined for breaking the rules and regulations.

Lack of Privacy

Less privacy: In a condo complex, everyone has access to the building’s common areas, such as the lobby, hallway, yard, and other amenities. Therefore, if you value privacy, a condo may not be the right option for you. Usually, one of the common problems in condos is creating noise. For example, if your upstairs neighbor wakes up early in the morning and goes to his office, it is possible that his footsteps will wake you up. Therefore, if you want to have more independence or freedom of action but you also want to manage your budget, maybe buying a townhouse is more suitable for you.

limited parking

Limited Parking

Depending on the location, a condo may have limited (if any) parking options. Some condos only allow one assigned parking space per unit, which can be problematic if your family has more than one car.

Lack of Storage Space

Since condos are usually smaller than houses, you will likely have less room to store items in a condo than in a house. Some condo units have designated storage space, but these spaces may be small and unable to store larger items.

With these things in mind, let’s take another look at whether buying a condo might be a good decision for you.

Resale Challenges

In this section, we discuss several problems when reselling a condo

  1. Limited or no yard space. Buyers may avoid homes or condos with limited or no yard space, especially if similar homes in the community have this feature.
  2. Unattractive shows. Houses or apartments with no views or unattractive views are less desirable than properties with attractive views.
  3. Lots of flags. The number of flags does not meet minimum facade requirements, and street access is limited, often via a private right-of-way or driveway. Some buyers may find too many flags off-putting.

There is no Yard or Green Space.

In villa houses, there is land as a front yard and a backyard that is entirely at your disposal. You can use this space in addition to the interior space of the house, and it is a place that can be used for holding parties, creating a garden, planting flowers and plants, building a swimming pool, or a children’s playground. There is no such space or possibility in condos, and your property in a condo will be limited to the house’s interior space.

No Land Ownership

When you have a house with more land, you can add a room to it according to your needs or create another new space for yourself by building a wall. Changing the building plan is something you can do over time, and whenever you need a new area (for example, when you have a new child), change your home to suit your needs. It is never possible in an apartment, and it is usually not possible to change the plan of a condo.

Pet Restrictions

For tenants to live peacefully in a complex, condos have certain rules, including rules restricting the allowed pets’ species, numbers (often 1-2 per suite), and the size or weight classes. In general, animals weighing 25 to 50 pounds or more are not allowed, which frequently includes many dogs!

Whether you are an owner or a tenant, the condo pet policies apply to all residents on an equal basis.

Condo Loan

When it comes to buying a condo, you should be aware that there are differences between condos and single-family homes when it comes to the mortgage process.

Compared to a loan for a single-family home, a condo loan may have a few additional considerations.

One of the big differences between condos and single-family homes is that you choose an FHA loan.

If you are considering an FHA loan for your condo, it must be listed on HUD’s FHA approved condo list. The FHA has a list of criteria that a condominium project must meet before it can be approved to allow residents to use FHA financing to purchase or refinance a condo.

The Superiority of Other Types of Houses Compared to Condos

When we talk about the kinds of homes, we mean places designed independently, attached, duplexes, etc., and no more than one or two families will live in that building. This type of home can also have advantages that may make it more useful than condos for some:

Having a Private Yard and Space

In in-villa houses, there is land for a front yard and a backyard at your disposal. You can use this space in addition to the interior space of the house, and it is a place that can be used for holding parties, creating a garden, planting flowers and plants, building a swimming pool, or a children’s playground. There is no such space or possibility in condos, and your property in a condo will be limited to the house’s interior space.

More Freedom to Personalise Your Home

Unlike condos, a house in Canada allows you to change its exterior and interior according to your taste. One of the disadvantages of condos is the uniformity of your home’s exterior environment, which you will have no role in changing. But in villa houses, you have the freedom to paint the exterior and facade of your home any color you want, plant flowers in your yard, paint fences, install barbecues, create awnings and gazebos, etc.

The Possibility of Upgrading the House

When you have a house with more land, you can add a room to it according to your needs or create another new space for yourself by building a wall. Changing the building plan is something you can do over time, and whenever you need a new area (for example, when you have a new child), change your home to suit your needs. It is never possible in an apartment, and it is usually not possible to change the plan of a condo.

Starting a New Business at Home

Many jobs in start at home. You probably know that many of the world’s biggest companies were also created in the garage of a house. Living in a condo will allow you to start a business from home. For example, if you want to begin plumbing, you can use the parking lot and yard of your houses were also created in the garage of a house. Living in a condo will allow you to start a business from home. For example, if you want to begin plumbing, you can use the parking lot and yard of your house. But such a possibility will not exist in condos.

There is No Limit on The Number of Residents.

Condos restrict the number of people who can live in each unit, whereas other houses do not.

For example, if you want to keep some other family members as guests in the house for a while, this will be dealt with according to the rules in apartments, while in a private home, you will not have such restrictions.

Ease of Selling

In general, it can be said that selling a house is more accessible than selling a condo. Selling a condo in the housing market can be very difficult. It is because condos are often bought as second homes (or alternative homes), and generally, people buy them when they can increase their assets. Also, the condos are very uniform and similar to each other, and none have a particular prominence compared to the others. Private homes are each personalised in some way by the previous residents. For this reason, buyers’ different tastes may include the presence of your home.

Is Buying a Condo Worth It?

When it comes to buying a condo, you should be aware that there are differences between condos and single-family homes when it comes to the mortgage process.

Compared to a loan for a single-family home, a condo loan may have a few additional considerations.

One of the big differences between condos and single-family homes is that you choose an FHA loan.

If you are considering an FHA loan for your condo, it must be listed on HUD’s FHA approved condo list. The FHA has a list of criteria that a condominium project must meet before it can be approved to allow residents to use FHA financing to purchase or refinance a condo.

Considering the advantages and disadvantages of buying a condo, it seems that buying this type of house is affordable

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