Purchasing a condo may be the perfect way to invest in a property without some of the challenges that come with owning a single-family home. There are two sides to every coin and it’s important to consider both the pros and cons of buying a condo before you make a large financial decision. With their many perks, convenient amenities and a heightened sense of security, condos can provide you with all that you’ve been looking for in a home at a price that is more affordable to you.
Cons of Owning a Condo:
Rules You Don’t Make
Single family homes afford you most of the freedoms to do as you wish on your own property. Living in a condo means there are rules to maintain a comfortable environment for all. Some of these rules may affect your choices or lifestyle such as rules against having pets, having visitors for extended periods or even alterations of the unit and its appearance.
Tip: Before purchasing, have a look at the condo rules and determine if they match your lifestyle. Things to look for:
- Are there rules against renting out your apartment as an investment property?
- Is there visitor parking, and if so, how long are guests allowed to park there?
- Can you sublet or lease out your apartment short-term allowing you to travel?
Condo Fees
Along with your mortgage and property taxes, you will be responsible for paying condo fees each month. These fees will go towards community amenities, cleaning services for common spaces, building maintenance and many other convenient perks. The tricky thing about condo fees is that even if you are comfortable with the starting cost when you move in, condo fees have a tendency to go up.
Tip: Ask to see the condo fee history for the building. This will give you an idea of how the condo fees will grow in the future. It also helps to get an idea of much money is in the reserve fund, and what future plans may be in place for maintaining the building.
Often Appreciate Slower
When you own a condo, you don’t own any land. And as land is one of the biggest drivers for home appreciation, a condo will most likely appreciate slower than a single-family home. Rather than owning land, you are investing a living space. Keep in mind that investors often favor condos because they have a tendency to be easier to capitalize on through rental income.
Tip: Considering all the pros and cons of buying a condo, look for a property in an up-and-coming neighbourhood rather than one that is already established – this will make it more likely that the condo will appreciate quicker.
Pros of Owning a Condo:
Increased Affordability
You may fall in love with a neighbourhood where single-family homes are out of your price range. Condos give you the option to live in a desired neighbourhood while carrying a mortgage you can afford. It is often true that a neighbourhood makes the condo and not vice versa, therefore you may be likely to choose your next home based on its convenient surroundings rather than the size of the home itself.
Low Maintenance
For a first time homeowner who isn’t confident managing an entire property, someone very busy with work or people who embark on travel frequently, low maintenance living is ideal. A condo allows for the benefits of homeownership while others do the maintenance for you. Not only are you saved from outside maintenance when you own a condo, you may have the benefits of great common areas like a pool or a gym which would typically require significant attention.
Security & Peace of Mind
Most condos are equipped with enhanced security features that provide residents with peace of mind that they are safe. The presence of many close neighbors can provide you with a safe feeling that there are plenty of people nearby if you are in need. If you travel often, having neighbors steps away from your door will make you feel at ease. Along with secure entrances, some condos even have surveillance cameras or security guards which provide you with a ton of safety.
Top-Notch Amenities
Many condo buildings will offer you a wide variety of amenities, some of which may be very well out of reach for an average homeowner. Condo amenities may include gyms, swimming pools and guest suites. Some condos even have hotel-like amenities like rooftop terraces and party rooms.
Tip: Your condo fees may be in relation to some of the great amenities you have access to, so get to know what the building offers and be sure they are amenities you or your tenant will benefit from.
Location, Location, Location
Condo buildings are frequently built in the more popular, thriving neighbourhoods of a city. As mentioned before, the neighbourhood often makes the condo. Gentrified, thriving areas have great Walking Scores with easy access to convenient services and entertainment. To own a property with outdoor space often means choosing a residential neighbourhood, whereas condo living can provide you with ample perks in walking distance.
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If you are seeking advice on buying a condo in Ottawa or have more questions on pros and cons of buying a condo, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.