Freehold vs. Condo – What's right for you?
Condos can be a great choice for many people, including first time buyers looking to get into the market and build some equity. A condo unit can be a good starting point, since it is usually less expensive to own and carry than a traditional house. Condos allow freedom from maintenance and upkeep costs.

The term “condo” is not synonymous with the term “apartment”. In actuality, “condo” refers to the form of ownership and has nothing to do with the physical characteristics of the unit. In fact, a condo doesn't have to be an apartment at all. A condo can also be a flat, a townhouse, a link home, or any type of multi-unit residential dwelling or even a commercial property. What defines it as a condo is the form of ownership under which the unit is held.

Video 5 - Tips on buying a Condo

Condominium refers to the ownership of a specified space or unit in a multiple unit dwelling, plus shared ownership of areas used jointly with other owners. These areas, or common elements, can take the form of a swimming pool, elevators, laundry room, exercise room, front lobby, security station, etc. The cost of operating and maintaining these common areas is shared jointly by the individual unit owners in the form of regular maintenance payments, usually paid monthly. The cost is determined by the condominium corporation, a governing body made up of individual unit owners. Since this is a self-governing process, there is a certain degree of control that maintenance costs are affordable.

Condominium ownership offers many of the advantages of ownership, such as title, privacy within your individual unit and the potential to build equity. It also eliminates many disadvantages of home ownership, such as snow removal, lawn care and the unwanted financial burden of single-handedly dealing with major repairs for such roof or furnace replacement. With a condo, you have the peace of mind that your property is being well maintained, with no hassle or surprises.

Freehold units ensure that you are responsible for your own upkeep and maintenance costs, giving you more control over these expenses. If you are buying a relatively new unit, where major repairs and expenses can be minimal in the first several years, this can potentially give you an opportunity to pay down your mortgage quickly and build your personal equity. The downside is you have to handle all the work of either doing the labour or contracting it out. And when large expenses arise, you're on the hook all by yourself. There's a lot to consider.