| Condos

The age old house vs. condo debate and here to discuss it/debate it for you is RateHub Canada. So sit back with a glass of tea or wine, which ever is your preference, I won’t judge and enjoy!

Living in, or close to, a major city like Toronto has both pros and cons – while it’s exciting to be in the center of the action, it can also be expensive to own your own property, especially if you’re looking at houses.  A condo, on the other hand, lands you in the heart of the city at a fraction of the cost; this can be appealing to many people, including first time home buyers.
“It’s easier to break into the housing market [with a condo],” said Mortgage Broker Dara Fahy, “and you’re buying prime real estate in the heart of the city.”
However, condominiums tend to depreciate in value long-term, whereas houses typically appreciate.
“There’s a lot of value in buying a piece of property and land,” said Fahy, “especially in urban areas where land is at a premium — there’s a very good chance for appreciation.”
It’s also important to think about the upkeep of your property long-term.  Condos are low-maintenance, as your condo board typically takes care of any and all repairs.  However, this does come at a cost through your monthly maintenance fees.  A house, on the other hand, doesn’t come with a monthly fee other than your mortgage payment, but you could get hit with a hefty bill should something go wrong.
You might pay $400 a month in maintenance fees for your condo, which adds up to about $5,000 a year, but a house could end up costing you much more.
“A condo will affect your monthly cash flow steadily as you’re paying maintenance fees, but you won’t be getting huge repair bills,” said Fahy.
When deciding whether a house or condo is right for you, it’s also a great idea to use a mortgage affordability calculator to determine what kind of budget you’re working within.  While you might dream of owning a house close to your downtown job, it might be more realistic to look at a house in the suburbs or a condo in the city.
In addition to the financial considerations, there are a number of other factors—including lifestyle tradeoffs—to consider when deciding which type of property best suits you.
Do you want a lot of control over your property when it comes to renovations and landscaping? Do you prefer to drive or walk to get where you’re going?  Do you value privacy or do you like being surrounded by people?
Choosing a condo might put you in the heart of the city, but you’re giving up a certain amount of privacy and space for that prime location.  On the other hand, you could head into the suburbs where houses become more affordable, but you’re trading the convenience of city life to get that price point.
In the end, it’s important to weigh the pros and cons of each property type and consider how these might affect your everyday life.
Are you more partial to houses or condos?  Do you currently live in the one you prefer? We would love to hear from you!

For more information make sure to follow RateHub on Twitter @RateHub_Canada and like them on Facebook.

Oh and just in case you missed our last guest post swap, no worries, just click here to find out 5 Questions You Should Ask Your Mortgage Broker and click here for a fun post about Coloured Kitchens.

See you next month!


  1. Choosing whether if it’s a condo or a house is still depends on the buyer. Just like the image above, both of this kind of property has a pros and cons. The budget in still important in home buying and what you will choose.

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