Perhaps one of the most debatable questions in real estate is ‘which is a better investment between a condominium or a house?’ The answer is not simple. Variables such as lifestyle and budget play a major role in determining which is the best solution. From an objective point of view, each of these options has certain advantages. But if you are thinking purely from the perspective of investing, then the answer may surprise you.
Current Canadian Real Estate Trends
The real estate market has changed a lot since 2011. One of the major changes has been observed in the demand and price of condos; both have increased immensely over eight years. Canadian real estate market is ever-changing in nature, which is why you need to compare the pros and cons of houses and condos before you invest in one. Stay updated with the emerging trends while also considering future plans that may increase the economic value of that area.
Difference Between a House and a Condo Investment
When you are purchasing a house, you
are taking full responsibility for all the expenses that come with owning and
maintaining a property. This includes mortgage, property taxes, insurance,
maintenance cost and any cost regarding repair or remodelling. However, with a
condo investment, you just own the interior space of the unit, and in some
cases, the parking space with it. The other areas, such as the outdoor space
remains accessible to all the other unit owners of the building along with you.
Naturally, the expenditure is reduced by a lot. You just need to pay a small
amount as a monthly maintenance charge, which includes all amenities like
heating, water, pest control, insurance and landscaping. A fraction of this fee
goes to a reserve fund that will be used for repair and renovation purposes
Reasons to Invest in a Condo
- If you want to avoid any hassles regarding the daily maintenance that comes along with full property ownership, such as plumbing, gardening, lawn mowing and so on, then condos are a better investment choice.
- Condominiums give you the convenience and freedom of having your own space without any additional expense or responsibility.
- Whenever you face any issue with maintenance, all you need to do is just make a phone call.
- You get access to all the common amenities like a swimming pool, gym or parking space.
Reasons to Invest in a House
- If you prefer complete independence, then having a house has its own perks. You are going to be the sole decision maker when it comes to styling and decorating.
- You do not require approval from anyone else to make any adjustment to your home.
- You get a completely private space, where you do not need to worry about prying neighbours.
- If you are a DIY person, then you will definitely enjoy doing all the maintenance and repair by yourself.
The bottom line is that both options come with their pros and cons, and it all comes down to your personal preference and budget. If you are choosing to get a condo or a luxury home in Oakville, Toronto, Brampton or anywhere else in Canada, remember the points discussed in this post before coming to a decision.