Freehold vs Condo Apartment: Which one is Right For You?
Shopping around for a new apartment and genuinely concerned about what options are available to you and how to go about choosing one? Perhaps a freehold or a condo apartment seems to catch your fancy, but you’re unsure of what you should base your final decisions on.
This article aptly delineates the differences between a freehold and condo apartment and finally, helps you make the right choice. Should you stake your money on a freehold or condo apartment? Turns out, it depends on what your aims are.
Have a Limited Budget?
If you’ve got a limited budget and have been unable to pass the mortgage stress test for a large mortgage a condo apartment should be high on your list of preferred apartments, since they are often cheaper than other property types. You should always check mortgage affordability calculator to figure out how much mortgage you can afford.
Looking for Financial Returns?
If what you’re majorly looking for is a financial return in value for your investment, then you should root more in favor of freehold properties e.g. a detached house, since these types of properties tend to grow better in value. In this regard, investing in a freehold apartment is a genius move, as should you decide to sell it, your potential buyer can choose to build something else on the available land mass. This is in direct contrast to condo apartments and condo townhouses, for which maintenance costs continue to rise when old and the decisions about spending are out of your hand and being made by condominium boards.
Want to Live Close to Your Workplace?
If this is a major determining factor for you, consider the fact that you might not be able to afford a detached house close enough to work area in big cities (depending on your income potential and the property size). As well, most detached houses in these areas are already occupied by baby boomers. A good option in this scenario is a high-rise condo apartment; these apartment types are often built around major workplace areas such as downtown.
Need a Lot of Space?
Some apartments are so crampy, it makes breathing feel like an extreme sport (Yes, there’s such a thing as too crampy)! These days it has become pretty difficult to find an apartment with a size over 1000square feet. If you have a family of 3 or more, you might consider a detached house or a townhouse as a valid option over a condo apartment, since most condo apartments tend to be quite small. Consider the fact that kids might face a lot of restrictions when they want to play freely and neighbors continue to complain that the noise is too much (side effects of living in an apartment with no space).
Too Busy to Take Care of House Maintenance Needs?
Yes, the amount of time you’ve got to spare has a big impact on which type of property is most suitable for you. A super busy person might consider a condo apartment or condo townhouse over freehold properties. Here’s why: condos are often taken care of by the condo management, but for detached houses, you’re responsible for it all: safety, insurance, maintenance etc. if you wouldn’t have enough free time on your hands to handle these needs, it's only logical to choose a properly management properties like a condo apartment.
When it comes to choosing a property type, lots of factors come into play beyond how attracted you are to the property. Some mistakes stay with you for a long time, and if you choose the wrong property type, you are likely to be discontented with it. Never forget that getting the right realtor is a key to get the right property. Aim for practical, logical and highly satisfying options and always remember that this since this is a very big investment, you can’t afford to make irredeemable mistakes!