Should you be buying a Condo or Freehold property?
The most important difference between a Condo and Freehold is in the area of land ownership. For example a Condo Townhouse, the inside of the particular unitis owned. But, the exterior of the unit in addition to land that surrounds the said unit and other units, lawns, pools, gardens, driveways, parking, etc. is the property of all unit owners and is referred to as the “common elements”. All owners would pay a maintenance fee that includes things like the usual upkeep and treatment of the various units, the grounds, and outside maintenance of all homes. Owners typically elect a board of directors, who meet once a year, then vote on issues as brought forth by the Board of Directors (Governing Body).
Alternatively, with a Freehold, the unit owner would personally be responsible for the lotplus the house. There will be no required maintenance feesthat must be paid. The home owner may decide using their discretion whether there exists a need to make any property repairs. Any maintenance or repairs is paid for by them.
The question that needs answering with Condo vs Freehold, is which one would be most cost effective?2
Economic Issues Concerning Condo Vs Freehold
Recent developments have proved buyers today are more fascinated by the content of the property than the choice of ownership. Condominiums certainly can offer a lot in terms of contentand might cost a little less, based on how many properties are within the complex, because the costs are shared amongst the different unit owners. Just take a glance at some of the amenities offered in this sample condominium listing:
- Lap pool and Spa Lagoon pool
- Splash deck
- Attractive water features for children
- Fitness area for adults
- Barbecue Pavilions
- Tennis courts
- Sky Park
- Gym that is also equipped with a steam room
- Jogging Track and suntan decks
- Spectacular gardens It is very unlikely that you’ll find ammenities and features like these with a Freehold property. There is not much of a price contrast between Condominiums and Freeholds nowadays. Think about it. After youacquire a Freehold, you should also pay an additional 2.5 % in stamp duty to the state. Usually, the Freehold property that you acquire may prove to be on the expensive side, which suggests your stamp duty equates to many months wages.
Another thing to consider with Condo vs Freehold is that you are able to rent your own Freehold property and earn some extra income from it, which is important if you purchased the property as an investment. When purchasing a Condo, you are part of a number of owners who are able to negotiate better terms than Freehold propertyowners would be able to get from the banks.
The decision of selecting a condominium or freehold is an important choice, and it will vary depending on the persons everyday living choices. Some adults who want to clear up more of their time and cash to travel, take vacations, and spend time with their children will be more interested to purchasing a Condo over a Freehold.
Whether your still unclear withthe difference between condos and freeholds, you will find helpful real estate information and tips on our website centred on mississauga condos, such as the ovation condos located at 330 Burnhamthorpe Rd.
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