When purchasing a condo versus a freehold property, there are key differences in ownership, costs, responsibilities, and lifestyle considerations. Here’s a breakdown:
1. Ownership Structure
Condo: You own your individual unit but share ownership of common areas (hallways, amenities, landscaping, etc.) with other condo owners. A condo board manages these shared spaces.
Freehold: You own both the home and the land it sits on, giving you full control over the property.
2. Costs & Fees
Condo: Typically has a lower purchase price compared to freehold homes but includes monthly condo fees for maintenance, repairs, and amenities. Special assessments may be levied for unexpected expenses.
Freehold: No condo fees, but homeowners are responsible for all maintenance, repairs, and property expenses.
3. Maintenance & Responsibilities
Condo: The condo board/management handles exterior maintenance, landscaping, snow removal, and repairs for shared spaces, making it a lower-maintenance option.
Freehold: Homeowners must manage and pay for all upkeep, including lawn care, roof repairs, and structural maintenance.
4. Rules & Restrictions
Condo: Subject to condo board rules and bylaws, which may restrict renovations, rentals (Airbnb), pet ownership, and noise levels.
Freehold: No governing board—homeowners have full control over renovations, landscaping, and renting out the property.
5. Appreciation & Resale Value
Condo: Appreciation can be slower due to shared ownership, condo fees, and reliance on board management. However, well-maintained buildings in prime locations can still see strong value growth.
Freehold: Typically appreciates faster as land value increases over time. More desirable to buyers due to independence and lack of monthly fees.
6. Financing & Insurance
Condo: Easier to finance due to lower price points, but lenders may consider condo corporation financials. Condo insurance only covers the unit’s interior, while the condo corporation insures the building’s exterior.
Freehold: Higher mortgage amounts may be required, but you have full control over property financing. Homeowners must insure the entire property.
7. Lifestyle Considerations
Condo: Ideal for those seeking a low-maintenance lifestyle, access to amenities (gym, pool, concierge), and urban living. Best for busy professionals, retirees, or those who travel often.
Freehold: Better suited for families, those needing space (yard, garage, storage), and individuals who enjoy personalizing their home and outdoor areas.
Which One is Right for You?
Choose a Condo If: You want convenience, lower maintenance, and urban living with amenities.
Choose a Freehold Property If: You prefer independence, long-term appreciation, and full control over your home.