If you’re looking to get into the housing market, you’ve got plenty of decisions to make, including what type of home to buy. In this case, you may be deciding between a condo vs a house. Both offer plenty of perks, but there are also some drawbacks to each type of dwelling.
Before jumping into the real estate market, understand the key differences between condos and houses to determine which makes a better fit for you.
Condo Vs House: What’s The Difference?
When deciding between buying a condo and a house, it’s important to understand each type of dwelling and its key differences.
What Is A House?
A house is a single-unit residential building that’s typically designed to accommodate a single family. There are no outside entities that govern the ownership and operation of a home. Instead, the owner(s) have sole property rights and full control over changes, renovations, and landscaping, as long as they adhere to local regulations.
What Is A Condo?
A condo is a type of residential property whereby individual units are owned by separate individuals, but common areas and amenities are shared by all unit owners.
Separate condo unit owners only have so much control over their homes, as the condo board governs the entire complex. Condo owners are also required to pay a monthly condo fee, which covers a variety of expenses, including the maintenance of the grounds and all shared amenities.
Condo vs House: Major Differences
There are significant differences between condos vs houses, particularly in terms of the following:
Cost
The cost of a condo is generally lower compared to houses. This is a big appeal for home buyers looking for condos. Home insurance for condos is also typically lower compared to houses, since it only covers the interior of the unit. For houses, insurance covers the entire property, including the structure and land, which is why it tends to be more expensive.
With houses, however, there are no condo fees to pay every month. That said, these fees cover the cost of maintenance and other costs of property upkeep that house owners would otherwise pay out-of-pocket. Depending on the situation, condo fees could cost more or less than what homeowners pay to maintain their homes.
HOAs
As mentioned, condos require homeowners to pay a monthly Homeowners Association (HOA) fee, or condo fee. These fees are used to cover the cost of exterior and common area maintenance and can add a significant additional monthly cost to homeowners.
Condo associations not only charge a fee every month, but they also govern the complex. These associations can restrict various aspects of condo living, including making modifications to the unit, pet ownership, parking, and others.
Houses, on the other hand, do not come with condo associations and HOA fees.
Space
With a condo, interior living spaces, storage space, and outdoor space are usually much smaller than houses. Condos are usually just one level with limited square footage, while houses can come with multiple levels and basements, offering more living space. Houses also often come with private yards, garages, and more storage.
Maintenance
Another advantage of condo living is that there is minimal maintenance involved. The monthly condo fees cover maintenance, so owners have very little upkeep to worry about. Only interior unit maintenance and repairs are the owner’s responsibility.
With a house, owners are fully responsible for all maintenance, both interior and exterior. This includes things like landscaping, shovelling snow, roof repairs, and other chores. This requires more time, effort, and money.
Condo Vs House Ownership Benefits
Condos and houses each come with their own set of perks and drawbacks. Make sure you weigh these before deciding what type of home to purchase.
Condo Pros
- More affordable. Perhaps the biggest advantage of a condo is that they’re typically cheaper to buy than houses in the same area. For example, in Toronto, the average condo price is currently $693,754, compared to $1,1195,428 for houses.
- Security. Condos often have security features, such as security guards, gated entrances, and surveillance cameras.
- Amenities. When you purchase a condo, you’re also gaining access to many different amenities. These can include things like swimming pools, fitness rooms, basketball courts, ping-pong tables, spas, and other recreational activities.
- Easier to maintain. Condo complexes come with maintenance crews that will take care of tending to all features of the property and handle any repairs that arise. As such, owning a condo requires less maintenance, which can be important attribute for many people in today’s busy world.
House Pros
- More freedom. When living in a house, you have the opportunity to enjoy a lot more freedom and flexibility to do with your home what you want. You’re in control and don’t need permission from a condo board if you want to make any modifications, get a pet, or even what colour to paint your front door. Owning a condo does not give you this same level of freedom.
- More privacy. Houses typically offer more privacy than multi-unit residences like condos, as they’re not directly connected to other homes. Unless you’re living in a semi-detached or townhouse, a detached home offers the most privacy. Even if you are living in an attached home, you still may have more privacy, particularly with your outdoor space.
- More space. Houses usually offer more living space compared to other types of dwellings. Houses are typically larger than condos and offer multiple bedrooms, bathrooms, and bigger living areas. They often also include private yards, gardens, and sometimes additional structures like garages, sheds, or swimming pools.
Condo Vs House Ownership Drawbacks
Let’s take a look at some of the disadvantages of condos and houses:
Condo Cons
- Monthly fees. Condos usually come with monthly fees that cover maintenance and repairs of the complex and amenities. Depending on the location and complex, these monthly fees can be very expensive, and generally vary between $50 to $1,000.
- Less privacy. Sharing walls and being so close to your neighbours means less privacy compared to living in a house.
- More noise. When you own a condo, there’s always the potential for noisy neighbours, which can be bothersome considering the close proximity of units. Maintenance crews conducting work can also be an issue.
- Rules and restrictions. Condo boards typically have rules that unit owners must abide by, which can restrict certain activities, renovations, or lifestyle choices.
House Cons
- Higher initial cost. The purchase price of a standalone home is typically higher than a condo in the same area, generally speaking.
- Higher utility costs. Since houses are typically larger than condos, you’re spending more on heating and cooling for a house compared to a condo.
- More maintenance. As the homeowner, you assume full responsibility for all maintenance and repairs, whether you tackle them yourself or pay a professional to handle them.
Condo Vs House: Which One Should You Choose?
As you can see, there are plenty of perks to both condos and houses. So, which one is a better choice for you? The answer depends on your lifestyle and needs.
Condos are best for:
Seniors
Condos offer a smaller, more manageable living space, which is ideal for those looking to downsize from larger homes. They’re easier to manage and are more affordable upfront, which is great for seniors who don’t want to spend much time with home maintenance or are on a tight budget. Condo units are also usually one level, so seniors don’t have to worry about stairs and accessibility.
Condos also often offer social activities and shared spaces that provide a sense of community and offer opportunities for socializing.
First-Time Home Buyers
Since first-time buyers don’t have the proceeds of a previous sale to work with, they’re typically on a tighter budget than those who already own a home. Condos often have a lower purchase price compared to single-family homes, making them more affordable and accessible to those entering the housing market for the first time.
Real Estate Investors
Condos can be a good investment for earning rental income, especially in high-demand city centres. And since their price points are typically lower than single-family houses, condos are easier for novice real estate investors to purchase. Further, condos in desirable locations have a good chance of appreciating in value, providing a good return on investment over time.
Houses are best for…
Large Families
Houses typically offer more living space, including multiple bedrooms and bathrooms, which is ideal for families with children. These types of dwellings also offer larger outdoor spaces and private yards that provide a safe play area for kids and outdoor activities.
Real Estate Investors
Historically, houses tend to appreciate more steadily over time compared to condos and have a greater potential for a substantial increase in equity. Single-family houses can also provide steady rental income for investors, particularly those that are located in desirable neighbourhoods.
Final Thoughts
Choosing between a condo and a house depends on your financial situation, lifestyle, and personal preferences. Make sure to consider these factors to make an informed decision that best suits your needs.
