01 Mar Which is the ideal property choice, condo or freehold?
“My granddaughters are looking to buy a condo, but the fees are so high. Do you think she should buy a townhouse or home instead?”
Choosing between a condominium (condo) and a freehold home is a significant decision in real estate, each offering distinct advantages and drawbacks that cater to different lifestyles and preferences.
Condominiums in urban areas attract young professionals and retirees. Condo living offers convenience and amenities, with units part of a homeowners’ association (HOA) complex. HOA manages exterior, landscaping, and common area maintenance, freeing residents from tasks. Shared amenities enhance living experiences. However, financial considerations are crucial when buying a condo, as monthly HOA fees can increase ownership costs.
Freehold homes, on the other hand, are typically found in suburban or rural areas, providing more space and tranquility, making them appealing to families and those who prefer a quieter environment. They may have higher upfront costs but generally have lower monthly expenses since there are no HOA fees. They also appreciate in value over time, offering potential financial benefits. They typically have lower monthly expenses, and researching the HOA’s financial health is essential.
“Let’s say they are authorized for a $350,000 condo; the issue is that $350,000 is due for those fees and other costs. In most cases, they could purchase a freehold home for $500,000 to $550,000 or possibly even $600,000. Freehold residences are more desirable than condominiums, but they often lack rules like long-term rentals or short-term rental platforms. If someone wants to rent a condo for three months, they must rent for at least a year, or Airbnb-style, and the condo cannot accommodate short-term rentals or decorations like mats or wreaths.“
The decision between a condo and a freehold home hinges on individual priorities, lifestyle, and financial considerations. If they can afford a freehold property, they should buy it, but if they can only afford a condo, they should opt for a condo over rent due to rising real estate prices.