"Should I Buy a House or Condo?"
So, you’re looking to buy your next property in Toronto. It’s an exciting (and nerve-wracking) time for everyone! In the city of Toronto in particular you might be considering whether to buy a House or a Condo.
These different market segments are often compared based on a variety of factors. Some look closely at the price point, some at the long term investment, others at the cost of maintenance, the value of location, and so on. There’s a lot to consider!
It all comes down to your specific needs and long term goals. So which property type is right for YOU?
Here are four key points to consider:
1. LOCATION
You’ve probably heard it repeated three times, so we won’t annoy you with that. However, the importance of location is definitely a huge factor. With nearly anyone’s budget, there is a give-and-take involved in choosing a location.
HOUSE: Houses tend to be more expensive, so some buyers choose to compromise an ‘ideal’ location in exchange for their dream of owning a house. Single family houses in desirable areas tend to be pricey, or in need of renovation. To find an updated and more affordable house, buyers may choose a neighbourhood further from downtown.
CONDO: Downtown Condos are still a more affordable way to live in Toronto’s central/sought-after neighbourhoods. You can find modern condo apartments at a similar budget to what might get you a house further from the core, or one that needs work.
Takeaway: If you’re fine with a bit of a commute from work in exchange for a single family home, then a house could be your next move. If your top priority is a central location or turnkey quality then a condo could be the right home for you.
2. ONGOING COSTS
Monthly bills are the…not-so-fun part of home ownership. What does it cost to live in a house vs. a condo?
House: Owners of houses have to factor utilities into their monthly expenditures. One thing you’ll hear house owners complain about is that these utility bills can increase depending on the month. Then, there is the fact that of something goes wrong the house owner has to pay for it and that can really hurt the walletdepending on what it is (a flood, roof leak, etc). And don't forget about ongoing costs like yard maintenance and upkeep.
Condo: Condo owners also have to pay monthly maintenance fees. The good thing is these fees are usually fairly consistent and cover the upkeep of the property and any amenities. Make sure you can afford a particular building’s fees and find out which utilities are included/excluded in these fees.
Note: You can also research (and talk to your realtor) about what maintenance fees you can afford. For example, taller towers often have lower fees because there are more people paying the building's expenses.
Takeaway: Both property types have monthly fees to consider before you buy. While house fees can change, condo fees are fairly consistent. Also, house owners have to pay for unforeseen events, whereas most problems are covered by condo fees.
3. LONG TERM INVESTMENT
House: A house will likely gain more value over time. It’s easier to build up than out, so single family properties are always going to be desirable. Most people already know this of course, so it’s really about how important it is to you at this time in your life. Keep in mind that you will invest more time, with maintenance and daily/weekly tasks involved with a house.
Condo: A condo is largely about the value of location and your current needs. If a more vibrant location or a more turnkey lifestyle is for you, how much the value increases by might not be your top concern. That’s not to say condos aren’t a good investment! Buildings in a great location will hold and likely gain value over time too (Toronto is a sought after place to live after all) and unique buildings such as hard lofts will also very likely continue to gain value in the future.
Takeaway: While the value of houses are likely to increase the most, condos are a better choice for people who want a central location and/or a lower maintenance lifestyle. Also, in a popular city like Toronto, real estate (including condos-and especially unique condo buildings) is a good investment either way.
4. LIFESTYLE
We’ve already mentioned lifestyle a few times already, because a person’s day-to-day life is what it really comes down to in most people’s ultimate decision.
House: If you aren’t into a “downtown lifestyle” you might be happy living in a house further from the core. It might even be preferable! Also, many buyers with children still choose the benefits of a house (Some of of these benefits include more space and having a private yard). Finally, if control over your property’s interior/exterior is important to you, a house would be ideal.
Condo: The condo lifestyle appeals to a variety of buyers: Those who love the energy of the city and crave a walkable/commutable area. People who work downtown and find that the free time they gain by not having a long commute is the best amenity of all. Finally, those who want a low maintenance lifestyle choose condos, including young professionals, retirees, and frequent travellers.
Takeaway: Whatever your budget, ideal location, long term goals, and lifestyle there is a property that is right for you!
Choosing to buy a House or Condo is a big decision. Don’t hesitate to contact us at any time to discuss your individual search in more detail.
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