Freehold versus Condo Home Ownership
Monday May 21st, 2018
It all has to do with ownership when it comes to buying or selling a freehold propety and a condo property.
Freehold home: You own the house and the plot of land it is built on.
Condo Apartment or Townhome: You own the interior of a unit. The lot the building sits on is collectively owned by all unit owners.
It is a matter of personal preference and what you are looking for in a property.
There are pros and cons in each real estate option.
Pros of Freehold Real Estate.
- no monthly maintenance fee
- no rules and regulations
- free to maintain the property as you choose even it means not maintaining it
- you can build decks, plant gardens and paint your house without having to get special permission like you would in a condo
Cons of Freehold Real Estate
- entirely responsible for the maintainence
- though no monthly fee, you will have to pay the cost of any necessary repairs
- due to no rules and regulations, your neighbours do not have to maintain their property which could decrease the property value of your home if their home is in a state of disrepair
Pros of Condo Real Estate
- as you only own the interior of your unit no worries about property maintenance
- landscaping, snow removal and repairs are taken care of
- consistency, as the property is maintained by the condo corp. your unit and your neighbours are likely to look the same years down the road which means property values are not likely to decline due to disrepair or deterioration
Cons of Condo Real Estate
- montly maintenance fees
- paying for amenities like a pool or a gym that you may not use
- a chance over the years that you are paying more in maintenance fees than the the cost of maintaining your own property would actually be
- poorly managed condo building that doesn't maintain enough money in the reserve fund you may have to pay extra maintenance fees(an assessment) when repairs are necessary.
This can be avoided by having a condition in your Agreement of Purchase and Sale allowing your lawyer time to review the condo corporations status certificate.
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