Is a freehold better than a condo purchase? It honestly depends on your lifestyle! There are benefits to both.
You’re in a freehold if you own the land and have complete control over your property, including its maintenance. Some freeholds can have common element fees, but most of the time, it means you’re “free and clear” of anyone else interfering with your property or imposing rules.
On the other hand, a condo is a fantastic option for people who would prefer to pay a fee for someone to take care of the maintenance for them. This could include snow removal, cutting the lawn, etc. There’s more to it than that, so here’s what you need to know if you’re deciding to go freehold or condo.
Think about a condo this way: you own the interior, and a condominium corporation owns the exterior and common areas. This also means they’re responsible for them. However, your monthly fee contributes to the costs of repair and ongoing maintenance.
Here’s a pro and cons list that will help with your decision-making process!
- No monthly condo fees
- You have the freedom to do what you want to the landscape and exterior of the home.
- The value of your home typically goes up higher and faster.
- Freeholds are typically more expensive upfront - however, they do appreciate faster in value!
- You may have unexpected repairs that if you are not ready for - it may cause temporary stress!
- You’ll have to maintain your property and shovel the snow. If you have the time and energy, move this to the pro section!
- Encourages a stress-free lifestyle without upkeep the exterior of the home.
- More affordable if you’re okay with paying the monthly maintenance fees.
- It often includes amenities such as a gym, pool, sports courts. Not every condo has this, so it will depend on the building and location!
- You may have to pay for a special assessment. It’s a charge on top of your regular monthly fees and doesn’t need your permission to happen. It can be used due to unforeseen expenses, under-budgeting, or losing a lawsuit.
- A condo association basically governs you, so they’ll have rules in place on what you can and can’t inside and outside of your home!
- The maintenance fees may add up to a freehold mortgage anyway.