Condo vs House: Why Condos Make Better Investments
Posted by Edmonton Homes.ca on Monday, June 20th, 2022 at 10:11am.
Those in the market for a new place to call home might be considering a condo – and there are quite a few reasons why this property type is an attractive option. Condos are more popular than ever, especially for those who want to downsize or have fewer maintenance responsibilities. Another benefit is that condos are often more affordable than single-family homes. Keep reading to explore five reasons to invest in a condo instead of a detached house.
Condos Are Less Expensive
According to Living in Canada, the median cost for a single-family home in Toronto was just over $2 million, while condos sold for an average of $950,000. Toronto homes tend to cost more than properties in neighbouring provinces, as the average price of freestanding homes in Canada runs around $488,000.
However, statistics from PreCondo estimate that buying or building a condo with top-spec materials, branded appliances, a full basement, and turnkey finishing typically costs an average of $102,000 to $240,00 per unit. This price point makes them an attractive option for first-time home buyers and those on a budget looking to move into a city with higher-than-average real estate prices.
When buying a single-family home, there are more costs than the mortgage and property taxes. Owners of detached homes are held accountable for almost all of the maintenance duties of their property. In condo communities, the condo owner association (COA) handles quite a few major repairs and upkeep of the exteriors, common areas, and shared amenities. So, condos are typically more affordable to buy and in upkeep overall.
Condo Communities Have Great Amenities
One of the most attractive features of condo communities is the amenities they make available to residents. Many amenities are shared, while the association may have private amenities only available to certain residents in some neighbourhoods.
Essentially, these communities can give owners access to amenities that may be out of financial reach in a single-family home. Some of the most common perks for buyers of condos include fitness centers, pools, saunas, tennis courts, and clubhouses for social gatherings and private parties. There may also be rooftop terraces, community libraries, and concierge services.
In luxury condos, features can include sporting areas, lavish gardens, dog parks, free exercise classes, and regularly scheduled gatherings that allow residents to get to know each other. For some buyers, the amenities are a key reason for investing in a condo.
Condos Are Often Closer to the Action
Want to be close to the city centre or amidst the hottest spots in town? Condos tend to be near the city's core, while houses may be in the suburbs or outskirts of town and require owners to drive more. Condos are excellent for those who want to avoid long commutes to work and nearby shopping, attractions, and restaurants.
Buying a condo in a prime neighbourhood near the city's core hub makes it possible to walk, bike, or use public transportation to reach many of the community's hot spots and places of work. Rather than sitting in traffic for hours or having excessive car maintenance and fuel costs, investing in a condo in a dense area might be a top option.
Condo Owners Have Fewer Maintenance Responsibilities
Although buyers will own the condo, the lifestyle is similar to renting. While the average homeowner might spend an average of an hour a day handling landscaping and other maintenance duties, condo owners typically have these tended to by the condo owners association.
The COA is a legal organization that often works with a property management company, a board of directors, and property owners to maintain the quality and property values of the neighbourhood. With this goal in mind, the COA upholds common areas such as parking lots, garages, amenities, and the condos' exteriors.
The association covers extensive repairs like replacing roofing, siding, and fencing. These costs are absorbed by COA fees that owners pay at a set schedule. Owners are responsible for handling inside repairs and any systems deemed as private use, so overall, there are fewer unanticipated expenses to cover outside issues.
Condos Provide a Built-In Community
Having several neighbours is a given in a condo community, so there will likely be several opportunities to make friends and socialize. Living in a single-family dwelling may leave owners somewhat disconnected from neighbours, and they could never even meet the people next door.
However, the common and shared amenities at condo properties bring about chances to get more familiar with other residents. Imagine meeting new people at the pool or the clubhouse for a game night. Finding commonalities and shared interests at the community garden or dog park may create new friendships. In a single-family home neighbourhood, it can be challenging to connect with others compared to living in a vibrant condo community.
Enjoy Everything Condos Offer
Anyone who prefers to do less maintenance and live a more laid-back lifestyle will appreciate what condo communities offer. Between the vast benefits of convenient amenities and a built-in community of neighbours to connect with, buying a condo might be the ideal option.