House or Condo: Which to Chose?

House or Condo: Which to Chose?

Are you dreaming about converting your monthly rent into a mortgage payment by becoming a homeowner? Beware: you may have difficulty determining if a house or a condo best meets your needs.

Here are some things to consider while you house hunt to make the choice that is best adapted to your situation:

The Advantages of Condos and Houses

Regarding Your Finances

CONDO

Condos are, as a general rule, less expensive than houses. Maintenance expenses are shared between co-owners and are proportional to the dwelling’s square footage, reducing total costs. Sometimes, certain bills—like for cable and internet, electricity, or even insurance—are negotiated by the condominium syndicate, bringing them down.

HOUSE

Being a homeowner, by definition, means you’re a property owner. Your land is a secure investment, which can be passed down from one generation to the next. Nonetheless, maintaining this land area does require a larger budget since the owner or owners are solely responsible for covering them. Expenses are also more frequent and numerous.


Regarding a Lifestyle Adapted to Your Needs

CONDO

Because they are typically densely occupied, living in a condominium means having access to several in-building services: a gym, a pool, inside and outside relaxation areas, reception halls, a pharmacy and many others within the complex or at walking distance. This convenience can be very attractive!

HOUSE

Depending on your family situation, access to a fenced yard can be a serious advantage when you have young children or pets … or both! Usually, a house offers much more space and can more easily evolve along with its occupants. If your family is not quite finished growing, you might lean more toward this option instead of a condo that could eventually become cramped.

Regarding Maintenance and Security

CONDO

Not having to worry about outdoor maintenance chores like snow removal, lawn mowing, gardening, roof repair or window replacement is an advantage that may appeal to many property owners. They have more time to do what they love!

For people who live on their own or seniors, residing in a condo can help to make them feel safer. Depending on the building, there might be a guard at the entrance or the doors could be kept locked and protected by surveillance cameras and a security system. The neighbours are likewise quite near, increasing the sense of protection (or decreasing the sense of privacy–a matter of perspective).


Regarding the Resale Market

HOUSE

Financially, a house is usually a more “worthwhile” investment than a condo. It is generally easier to resell. There are so many new condominium towers on the market today that buyers sometimes prefer to purchase new units. This is also why condos are frequently used as income properties instead of being put up for sale.


Points to Keep in Mind

CONDO

1.    Before you set your heart on a condo, remember to include the condo fees in your budget, which, namely, go toward maintenance expenses and the contingency fund.

2.    Also, don’t forget to read the syndicate of co-owners’ recent meeting minutes. This will give you a general feel for the building: the rules, conflicts between neighbours, level of organization, etc.

HOUSE

1.    Set aside an annual sum to cover maintenance costs for your property. Here’s a tip: approximately 10% of the purchase price, per year, should be saved or spent on the house’s upkeep.


Are you still wavering between a house or a condo even after having read this article? Think about it carefully!

RE/MAX Québec

By RE/MAX Québec

By RE/MAX Québec

A leader in the real estate industry since 1982, the RE/MAX network brings together the most efficient brokers.