Condo vs House: Which Is Right For You?

When considering home ownership and deciding between popular property types like condos and houses, it is essential to weigh how each choice aligns with your lifestyle and long-term goals. Condos offer convenience and reduced maintenance, while houses provide space and privacy. Consider your budget, desired amenities, and how much time you want to dedicate to upkeep. Each option has unique advantages and drawbacks that could significantly impact daily life. So, which factors should you prioritize to make the best decision?

Condo vs. House at a Glance

• Consider your lifestyle: Condos offer urban convenience and amenities, while houses provide space and privacy in suburban or rural settings.
• Evaluate financial responsibilities: Condos have condo fees and lower maintenance costs, whereas houses require full maintenance with no monthly fees.
• Consider appreciation potential: Houses typically appreciate faster, making them a better long-term investment than condos.
• Assess your need for space: Houses offer larger living areas and outdoor spaces, ideal for families or those seeking privacy.
• Weigh desire for customization: Houses allow for more design control, while condos have restrictions that limit modifications.

What Is a Condo?

Condos, short for condominiums, are individual units within a larger building or complex. A condo, short for condominium, consists of individual units within a larger building or complex.

As a condo owner, you hold title to your unit but share ownership of common areas with other residents. You'll typically pay monthly homeowners association (condo) fees, which cover the maintenance of shared spaces and amenities like pools and gyms.

Unlike single-family homes, where you're responsible for all maintenance tasks, condo owners manage only the interior of their units—the condominium or homeowners’ association takes care of the exterior and communal areas. Condos often have lower purchase prices than houses, making them appealing to those seeking a low-maintenance lifestyle.

Pros of Condo Ownership

Often Cheaper

Condos are great for first-time homebuyers and anyone looking to minimize living costs because they’re often cheaper than houses. While you'll pay an average monthly condo fee of $50 to $1,000, this cost often covers maintenance, utilities, and shared amenities, reducing your financial responsibilities.

Additionally, the shared ownership structure means upkeep is managed collectively, helping to avoid unexpected financial shortfalls. Condos provide a financially sound choice for those seeking a balanced budget. They offer access to amenities like pools and gyms without high maintenance costs.

Less Maintenance

One of the biggest advantages of condo ownership is the significantly reduced maintenance responsibilities you'll face. With a condo board managing exterior upkeep and common areas, you'll spend less time worrying about property maintenance.

Monthly condo fees cover these costs, allowing you to budget predictably for housing expenses without the stress of unexpected repairs. The condo association handles regular chores like lawn care and snow removal, freeing you from time-consuming tasks.

Plus, many condos offer shared amenities, such as pools and gyms, maintained by the condo fees, giving you access to facilities without personal upkeep. 

Desirable City Locations

Living in a condo often means being in some of the most desirable city locations in the heart of urban life. Downtown condos are often a city’s most convenient housing, but those seeking more laid-back accommodations will find condos in quieter areas, too.

These desirable urban areas offer easy access to restaurants, shopping, and entertainment, making daily experiences more convenient. Condos also typically enable shorter commutes, as they're often near public transportation and major employment hubs.

Good First Rental Property

Condos present a compelling rental market option for first-time real estate investors. Their lower purchase prices than houses make them a good choice for those looking to enter real estate without a hefty financial commitment.

The condo fees cover maintenance and amenities, allowing for a more hands-off approach to rental management. Shared facilities, like pools and gyms, attract renters, increasing your property's desirability and potential rental income. Additionally, condos foster community connections, which can lead to lower vacancy rates.

Cons of Condo Ownership

Condo Fees

Navigating condo fees can be a significant consideration for potential owners. Monthly condo fees can range from $50 to $1,000, depending on the amenities provided by the HOA.

These fees typically cover maintenance of common areas, utilities, and additional services, which can increase your overall housing costs. Additionally, you may face special assessments for unexpected repairs or upgrades, leading to unforeseen one-time expenses.

Furthermore, the condo's rules may limit your control over how these fees are allocated, impacting your financial flexibility. If you fail to pay your condo fees, you could face penalties, including liens against your property, adding further financial risk to condo ownership.

Less Privacy

Living in a condo often means sacrificing some level of privacy.

Condo owners typically experience less privacy due to shared walls and common areas, which can lead to noise disturbances from neighbours. The proximity of units means that outdoor spaces are usually communal, limiting your outdoor privacy compared to a detached house.

Additionally, shared amenities, like pools or gyms, require interactions with other residents, which might feel intrusive if you value solitude. Condo living may also involve stricter rules regarding noise levels and the usage of common spaces, further curtailing your privacy.

Don't Appreciate as Much

Condo ownership often comes with the downside of slower appreciation than single-family homes, leading to less equity growth. However, the lower time and costs required for upkeep make condos beginner-friendly real estate investments.

Market saturation in multi-unit buildings can further impact resale values, making it challenging to sell at a profit. Restrictions on rental opportunities imposed by many condo associations can limit investment potential, hindering future gains.

Maintenance fees and special assessments can also eat into your net return on investment, further diminishing appreciation.

What Is a Single-Family Home?

Single-family homes, often referred to as houses, are standalone residential structures offering significant control over the property and its land. Unlike condos, single-family homes don't share walls with other dwellings, providing increased privacy. Homeowners fully own the house and the surrounding outdoor space, allowing for customization and landscaping without the restrictions typically imposed by an HOA.

However, with this ownership comes the responsibility for maintenance and repair, meaning you'll need to handle everything from lawn care to fixing leaks.

Single-family homes are ideal for families or individuals seeking more space and the independence to manage their property according to personal preferences and needs.

Pros of Buying a House

Reliable Investment for Long-Term Growth

Investing in a house is often a more reliable long-term growth strategy than other property types, such as condos or townhomes. Houses typically appreciate more over time, making them a solid long-term investment.

Space and Privacy

Owning a house offers significant advantages in terms of space and privacy that many buyers find appealing.

When you buy a house, you typically gain more space, including larger living areas, multiple bedrooms, and personal outdoor spaces like yards or gardens. This extra space enhances comfort, especially for families or pet owners.

Additionally, homeowners enjoy greater privacy since houses are detached, minimizing noise and disturbances from neighbours, unlike condos that share walls.

Complete Interior and Exterior Design Control

With a house, you gain complete control over your interior and exterior design choices, allowing you to personalize your space to reflect your unique style.

Unlike condos, where HOA rules limit exterior alterations, owning a house allows you to enhance your property. You can make extensive modifications, whether landscaping, painting, or adding structures like decks and patios. Additionally, you can undertake DIY home improvement projects or hire contractors to implement your vision at your own pace.

Cheaper per Square Foot (Rural and Suburban Houses vs. Urban Condos)

When considering the financial aspects of homeownership, houses in rural and suburban areas often have the lowest cost per square foot, especially compared to urban condos.

Generally speaking, property prices are less in the suburbs on a price-per-square-foot basis by more than 23% compared to the main cities, making houses cheaper per square foot. Additionally, owning a home means you won't have to pay monthly HOA fees, which can add to the total cost of ownership over time.

Further, houses typically offer larger square footage and outdoor space, catering to families and those needing more personal room. This affordability and land ownership make buying a home a financially sound choice for many.

Cons of Buying a House

When considering a house, it's important to recognize potential drawbacks that could impact your decision. You'll be fully responsible for maintenance and repairs, which can quickly add up and strain your budget.

Additionally, the higher down payment and property taxes compared to condos and the likelihood of longer commutes from suburban or rural areas can significantly affect your overall affordability and lifestyle.

Expensive Upkeep

Owning a house can present financial challenges, especially regarding upkeep. Unlike condos, where an HOA typically handles maintenance, homeowners are fully responsible for all repair costs.

Annual maintenance costs can average between 1% to 4% of your home's value, which can quickly add up. Unexpected issues, like a roof replacement or HVAC failure, can cost thousands, further straining your budget.

Additionally, ongoing expenses like property taxes and homeowner's insurance can increase over time. You must also budget for routine upkeep, such as lawn care and exterior maintenance, which adds monthly expenses.

It’s important to note that certain communities of single-family homes can have HOAs. Popular master-planned communities, such as Kelowna’s Kettle Valley or Seymour Village in North Vancouver, have HOAs and the associated fees. However, those fees cover some of your maintenance, like with condos. Weigh these factors carefully to ensure you're prepared for the responsibilities of homeownership.

Potentially Higher Down Payment and Property Taxes

Buying a house often means facing potentially higher down payments and property taxes that can strain your finances. Unlike condos, which often share costs among owners, homeownership puts all financial obligations squarely on your shoulders.

Down payments typically range from 3% to 20% of the purchase price, depending on the price of the home, which can be a significant upfront expense. Moreover, property taxes can vary annually based on your home's assessed value, and rates vary by location.

The potential for these taxes to increase over time complicates long-term financial planning, as it may lead to unpredictable expenses. Carefully consider these factors to ensure you're prepared for the financial demands of owning a house.

Long Commutes From Suburban and Rural Areas

Long commutes from suburban and rural areas can quickly become a significant drawback of owning a house. If homes in your price range are far from your workplace, you might face daily travel times averaging 30 to 60 minutes each way.

This situation can lead to roughly 200 to 300 hours spent commuting annually, which cuts into your time for family and leisure activities. Additionally, commuting costs can escalate, with estimates suggesting $1,200 to $2,400 spent on gas yearly.

Long commutes can affect your job satisfaction and overall productivity as fatigue results from those lengthy drives. Moreover, increased wear and tear on your vehicle can lead to higher repair costs, further complicating home-buying and financial planning.

Discover If a Condo or a House Is Best for You

If you’re buying a home soon, be sure to focus on your lifestyle and priorities when deciding between different property types. A condo might be your best option if you value low maintenance and amenities. On the other hand, if you prefer more space and autonomy, a house could be the right fit. Carefully assess your budget, location preferences, and long-term goals to make an informed decision that aligns with your needs. Taking the time to evaluate these factors will help ensure satisfaction with your choice.