Condo vs. Apartment vs. Loft: Learn About the Differences

Condos, lofts, and apartments. These three terms are so frequently used interchangeably that many people don't realize the significant differences between the property types. Understanding the unique definitions of each one can influence your real estate decisions and better align your investment with your lifestyle preferences and financial goals; there are certain things you must know before buying a condo or loft, and their basic differences are chief among them. Learn the nuances that distinguish lofts, apartments, and condos to make a well-informed decision for your next move. 

What Is a Condo?

A condominium is a residential property within a larger building or community where each unit is individually owned. Condo ownership involves holding the title to a specific unit — a private space typically including separate bedrooms, bathrooms, a kitchen, and living areas.

However, the broader property, which may encompass common areas like hallways, rooftops, courtyards, parking garages, fitness centres, or swimming pools, is collectively owned by all unit owners in the complex. The community will then elect or hire a board to oversee the maintenance of all shared interests and amenities. In most cases, the board's primary function is to assess the community's annual upkeep budget and establish fees or dues to spread the cost between all owners. 

What is a Freehold Condo?

A freehold condo offers a unique blend of condominium and single-family home characteristics. When you purchase a freehold condo, you buy the individual unit and the land on which it stands. Freehold condos provide greater autonomy over your property but are often more expensive than traditional condominiums. 

What is an Apartment?

An apartment is a residential unit part of a larger building, often managed by a single entity such as a property management company or a landlord. Unlike condos, apartments are not owned by the tenant but are leased short- or long-term. 

Apartments can vary significantly in size and layout, from studio spaces to multi-bedroom units. They may be part of large complexes with many similar units or individual units in smaller buildings. Many apartment buildings offer communal amenities such as gyms, swimming pools, laundry rooms, or even a doorman, depending on the level of luxury and location of the building.

Can You Buy an Apartment?

No, you can't buy an apartment. Although many homebuyers describe “buying an apartment,” its very purchase would technically classify the unit as a condominium. 

You can, however, rent a condo. Condos are among the most popular real estate investments because they're more affordable than single-family homes and can generate reliable passive income. When you rent out a condo you own, you're still responsible for maintenance, upkeep, and ensuring your tenant abides by community bylaws. 

What is a Loft?

A loft represents a distinct style of residential living that can be either a condo or an apartment. Lofts are often characterized by an industrial-chic aesthetic, as many of them were converted from commercial spaces, like warehouses. Common characteristics of lofts include wall-less, open-concept floor plans and extra-tall ceilings. They may also feature industrial design elements like exposed brickwork, visible air ducts, concrete floors, and large, factory-style windows.

Two primary types of lofts are "hard lofts" and "soft lofts." Hard lofts are units converted from previously industrial or commercial buildings, like warehouses or factories. Due to the increasing popularity of loft-style living, many modern developments mimic the design of hard lofts even though they're intended as residential spaces from the outset. These newly constructed lofts, which still adopt the open layout and industrial design, are known as "soft lofts." 

Which One is Right for You?

You must first determine your real estate goals to decide between a condo, an apartment, and a loft. The best property type for you depends heavily on personal circumstances, financial status, lifestyle preferences, and long-term plans.

For those looking for a long-term investment and willing to take on the responsibilities of property ownership, a condo can be an attractive option. Choosing a condo instead of a single-family home allows you to build equity over time and often comes with access to shared amenities like gyms, swimming pools, and social spaces. However, condo ownership also involves additional costs, such as fees for the upkeep of common areas, which must be factored into your budget.

On the other hand, renting an apartment is typically more flexible and less financially demanding upfront. Buying your home is an excellent investment, but the timing isn't always right. Renting an affordable apartment can help you save money for a down payment or optimize your credit score before buying the house or condo of your dreams. 

Once you choose between buying or renting, carefully consider your living wants and needs to decide if a loft suits you. The best lofts often have excellent downtown locations, spacious layouts, and plenty of natural light. However, the lack of walls and industrial-style interiors are only for some. 

Is Your New Home Going to Be a Condo, Loft, or Apartment?

The world of real estate is full of nuance. From the ownership and community benefits of condos to the flexibility and ease of apartments to the unique character and aesthetic of lofts, there's a housing type to suit everyone. Whether you're looking to buy or rent, understanding the differences between condos, apartments, and lofts will bring you one step closer to your new home.