Renting vs. Buying a Condominium in Canada – Pros and Cons

For many people in North America, the choice between renting or buying a condo comes down to opportunity. Looking at the housing market, with an average annual appreciation of 4 percent, buying as soon as you can seems like the best plan. After all, if you put 5 percent down on a $250,000 home and it goes up in value by 4 percent every year, you can see a return on your investment in less than two years! With those kinds of stats, most think home ownership is a no-brainer. However, there are plenty of advantages to renting as well. Let’s break down the pros and cons of both.

Should I buy a condo in Canada?

Condo ownership comes with a number of pros and cons. It’s important to think about your current and future lifestyle when looking at homes. Here are a few key considerations:

Advantages of Condominium Ownership

• Monthly condo fees and maintenance fees are usually stable and predictable. • As an owner, you can be elected to your condo’s board and have a say in many matters relating to the building. • Many condos come with on-site amenities that you can enjoy. Some, like pools, are things that you may not be able to otherwise enjoy. • Most condos have better security than detached homes, including keyed access, secure parking and, in some cases, security guards. • Condos usually do not have the same maintenance requirements as detached homes, and many problems, when fixed, will be solved for the entire building. • Many condos attract similar people, so you can have a social community that’s right in your building.

Disadvantages of Condominium Ownership

• You pay for all the amenities in the building, even the ones you never use. • Condos can be noisier than detached homes and sometimes feel more crowded. • You are not always in control of when maintenance and repairs will be performed. • You may not have complete freedom in your home. Things like where you can smoke, the colours you can use, and other aspects may be restricted by the building. • Condo boards are generally cordial, but this doesn’t mean everyone agrees all the time. In some instances, reaching a consensus can be challenging. • Condos are generally smaller than detached homes.

Should I rent a Condominium?

When you are considering renting, there are a number of things to consider, including your living situation. When renting apartments, things can be straightforward. Renting a condo, however, can be different. Here are some things to consider.

Pros of Renting a Condo

• Renting a condo means you’ll be renting from the owner rather than a large company. This means a more personal relationship with your landlord. (This can be a pro or a con!) • Most condos are in better shape than apartments because someone directly owns and takes pride in the property. So, while large apartment complexes may feel low quality, condos often feature brand new appliances, finishes, and other perks not found in apartments. • Apartments rarely have amenities. Condos, on the other hand, often feature plenty of extras, including some luxury options.

Cons of Renting a Condo

• Home Owners Associations (HOAs) essentially run the condo building, taking care of the property and the amenities. These come at a cost and you, the renter, so you will be the one footing the bill. You may not be paying the condo fees directly, but they will be factored into your rent. • Many condo owners have to take care of their own maintenance issues just like any other homeowner. The result: you may be stuck with the bill more often than you like. Or, if your landlord is not financially set up properly, getting major repairs done can be a challenge. • Some HOAs do not like renters in their buildings, which makes rental condo units more scarce than apartments. Finding a quality one can often take more time, and be more competitive, than finding an apartment. Whether you want to rent or buy a condo in Canada, Condo Essentials is your guide for getting the information and help you need to find the perfect place for your lifestyle and future.