What Is a Condo: Pros & Cons of Buying a Condo

A condo (short for condominium) is an individual unit within a multi-family building. Generally speaking, when you buy a condo, you own the unit itself but not the land it occupies, although variations in condominium ownership structure exist. When considering the purchase of a condo, individuals often weigh the benefits and drawbacks of this unique homeownership. From shared amenities to potential community conflicts, deciding to invest in a condo can be complex. Is condo living right for you?

6 Things to Know About Condos

• A condo is a privately owned unit within a building or land allotment that’s mutually owned.
• Condos are purchased, and apartments are rented, though the two terms are often used interchangeably. 
• Condos offer low-maintenance living.
• Restrictions on customization and monthly association fees.
• Community living fosters relationships.
• Potential for conflicts due to condo association regulations.

What Is a Condo?

A condo is a privately owned unit within a larger residential building or community. Condo owners possess the interior space of their units, offering a blend of apartment living and single-family home ownership. Managed by a condo board or association, owners must pay monthly condo fees for standard area maintenance and building management. This setup relieves individuals of direct responsibility for landscaping, exterior upkeep, and amenities maintenance.

Condo associations oversee shared amenities like fitness centers and pools, promoting a convenient lifestyle for busy individuals. Additionally, they enforce security features, such as enhanced measures and smart-home technology, to ensure residents' peace of mind. 

Condo living encourages community interactions, fostering relationships and a sense of belonging through shared resources and participation in events. The location and accessibility of condos provide residents with easy access to amenities, public transportation, and vibrant living experiences. Condos can be good investments because they appreciate in value and can sometimes be rented out. 

In essence, condos offer a low-maintenance lifestyle, access to facilities, enhanced security, community living, and strategic locations. These benefits appeal to a wide range of individuals, from first-time homeowners to those looking to downsize and simplify their lives.

Pros of Buying a Condo

With their luxurious amenities and stress-free maintenance, condos offer a desirable lifestyle choice for many prospective homeowners. Condos often come equipped with amenities such as fitness centers, pools, and enhanced security features that elevate the living experience. The convenience of having exterior maintenance and repairs managed by the condo association can significantly reduce homeowner stress and save time and costs, making it an ideal option for busy individuals, first-time homeowners, or those looking to downsize.

Access to shared facilities promotes social interactions, enhances lifestyle quality, and adds value to the property. Community living in condos fosters relationships, encourages participation in events, expands social circles, and promotes the sharing of resources, creating a sense of belonging among residents. Additionally, the location and accessibility of condos near amenities, public transportation, and landmarks contribute to a vibrant living experience while reducing commuting time.

Monthly fees cover services like landscaping, snow removal, and building maintenance, providing residents with a worry-free living environment. If you have questions about these fees, make sure you view the unit's estoppel certificate before you buy. When comparing condos to houses, buyers will usually find condominiums to be less expensive, making them an attractive option for buyers seeking a mix of convenience, luxury, and community living.

Cons of Buying a Condo

Moving on to the drawbacks, monthly association fees and restrictions on customization can detract from the appeal of owning a condo. These fees, while covering maintenance costs and shared amenities, are mandatory and can become a financial burden, especially if they increase unexpectedly. Additionally, condo owners often have limited control over making significant changes to their property, which is one of the key differences between townhouses and condos. Restrictions set by the condo board can inhibit personalization and renovation options, potentially hindering the freedom to tailor the space to individual preferences or make a small space feel larger.

Another downside of condo living is the potential for association issues. Conflicts with the association, disputes over decisions, lack of transparency in governance, and sudden rule changes can create tension and uncertainty for residents. Moreover, resale restrictions in condos can pose challenges for owners looking to sell their units. The approval process, market conditions, and limitations on renting out the property can impact the ease and profitability of resale transactions.

Furthermore, the increased rules and regulations within condominium communities governing various aspects of daily living can limit owners' autonomy, covering everything from parking to exterior appearances.

Types of Condos

High-Rise & Low-Rise Condos

High-rise condos are towering buildings, typically standing over 10 stories high, often found in the city centre. They offer breathtaking views of the cityscape, and their residents enjoy a variety of amenities such as gyms, swimming pools, and concierge services. High-rise living appeals to those who appreciate modern architecture, the convenience of city living, and the sense of community that comes from sharing common spaces with numerous neighbours. The higher floors tend to be quieter and offer more privacy, making them a desirable choice for many urban dwellers.

Low-rise condos are buildings with typically fewer than four stories, often situated in suburban or quieter urban neighbourhoods. They provide a more intimate living experience compared to high-rise buildings, with fewer units and less crowded common areas. When comparing high-rise and low-rise buildings, you may find these condos often blend more seamlessly with residential surroundings, offering a balance between community and privacy.

Penthouse Condos

What is a penthouse? Penthouse condos are luxurious units located on the top floors of high-rise buildings, offering the pinnacle of urban living. These residences boast expansive floor plans, high ceilings, and premium finishes, often including private terraces or rooftop gardens with panoramic views. The best penthouses are synonymous with exclusivity and prestige, providing a higher level of privacy and quietude above the bustling city. They cater to individuals seeking opulence and a high standard of living, with easy access to the building's top-tier amenities

Freehold Condos

Freehold condos are properties where the owner has full ownership of both the individual unit and the land it sits on. This type of condo offers more autonomy and fewer restrictions compared to leasehold condos, as there is no landlord or lease agreement to adhere to. Freehold condo owners are responsible for the maintenance and upkeep of their property, which can lead to higher costs but also greater control over modifications and improvements. This type of ownership is ideal for those who desire a greater sense of permanence and stability in their living situation.

Leasehold Condos

Leasehold condos are properties where the owner has the right to use the unit and common areas for a specified period, typically between 50 to 99 years, under a lease agreement. At the end of the lease term, ownership reverts back to the landowner unless an extension is negotiated. Leasehold condos often have lower purchase prices compared to freehold properties, making them more accessible to buyers with budget constraints. However, they come with certain restrictions and potential uncertainties about future lease renewals. This type of condo is suitable for individuals looking for a more affordable entry into homeownership without the long-term commitment of owning the land.

Pre-Construction Condos

Pre-construction condos are condominium units that are sold by a developer before or during the construction phase of a residential building. Buyers purchase these units based on architectural plans, floor models, and projected amenities rather than on completed structures. These condos are often offered at lower prices compared to finished units, providing potential for property value appreciation by the time construction is completed. Buyers may also have the opportunity to select specific features and finishes for their unit. However, purchasing a pre-construction condo comes with risks such as potential delays in construction, changes in the market, and the possibility of the final product differing from initial plans.

Is Condo Living Right For You?

Condos offer a unique living experience with luxurious amenities, stress-free maintenance, and community interactions for buyers. However, they also come with potential drawbacks, such as monthly association fees, restrictions on customization, and potential disputes within the community. Ultimately, it is important for buyers to weigh the pros and cons carefully before making a decision to purchase a condo.