Freehold vs. Condo – What’s the difference?
Condo is a viable option if you are a first time buyer and wanting to build on equity. It is a good way to start with, since condo units are usually less expensive than any traditional home. Based on your lifestyle it may be a rational choice, as well. People who are not willing to do lawn work, snow removal, or roofing repairs, can find everything they want in a condo unit, along with an extra layer of security.
No matter what is your reason to buy a condo, you should know everything about what’s you are about to buy. Some people don’t know exactly what condominium means. They often use the word condo as a synonym for regular apartments, where in reality, it refers to the ownership only, which has nothing to do with the physical characteristics of the unit. As a matter of fact, a condo doesn’t have to be an apartment in the first place.
Freehold vs. Condo
A condo can either be a multi-unit residential dwelling, a link home, or a townhouse. They may comprise an exercise room, rooftop lounge, swimming pool, and parking garage. The expenditure of these common spaces is borne by the owners of every unit as a form of maintenance fee. How much you have to pay is decided by the board in charge of maintaining and operating the common areas. It is a good idea to be a part of the board to have your say in decision making.
As a condominium owner, you can get amenities like privacy and many more. As a condo owner you can ensure your property is being well maintained, with the minimal effort from your end.
Freehold units, on the other hand, offer additional choices. The option to alter your property is always open. As the maintenance part is to be done by yourself, you can save big on it. Shoveling your own drive and cutting your own lawn will save you some hard earned cash. To bear the cost of big renovations like a furnace or new roof you will have to budget accordingly.
Condos are run by fixed rules that may restrict you when it comes to what color to use in the garage. In many cases, a portion of the maintenance fee is saved under the label of a reserve fund. So before you finally decide to buy a condo or freehold, give it a second thought.