The difference between buying or selling a freehold property and condominium townhouse all has to do with ownership. With a freehold home, you are the owner of the home itself and the plot of land it sits on. A condo townhome differs in the sense that you only own the interior of a unit. The lot a condo townhouse sits on top of is collectively owned by all unit owners.
When it comes to determining what option is best for you it largely depends on personal preference and what you're looking for in a property. There are pros and cons of each real estate option listed below to help you determine what best suits your needs.
The Pros of Freehold Real Estate
You don't have to pay a monthy maintenance fee if you purchase a freehold home.
There are no rules and regulations. You are free to maintain the property as you see fit, even if it means not maintaing the property. You can also build decks, plant gardens, and paint your house without having to get any special permission, like you would with a condo.
The Cons of Freehold Real Estate
You are entirely responsible for maintenance. Though you don't have to pay a monthly fee you will have to pay the full cost of any necessary repairs to your property so while the idea of no monthly maintenance fees may be attractive, you may end up paying equivalent to those fees in one large sum if repairs are needed.
Due to the fact there are no rules and regulations in freehold real estate, you're neighbours don't have to maintain their property unless they can afford to which could mean decreased property values if surrounding freehold homes fall into disrepair.
The Pros of Condo Townhomes
You only own the interior of the unit so you don't have to worry about property maintenance. Landscaping work, snow removal, and repairs are all taken care of for you.
There is consistency to condo ownership. Since your property is maintained by the condo corporation, your unit, and your neighbour's units, are likely to look the same many years down the road which means property values aren't likely to decline based on disrepair or deterioration.
The Cons of Condo Townhomes
You have to pay monthly maintenance fees that go towards amenities that you may not be using. For example, you may pay to maintain a fitness centre or a pool that you don't use. In addition, there is chance that over the years you may pay more in maintenance fees than the cost of maintaining your property would actually be.
If you have a badly managed condo building that doesn't have enough money in its reserve fund, you may have to pay extra maintenance fees when repairs are necessary. This can be avoided by reviewing a condo corporation's status certificate before purchasing a unit.
If you have questions about freehold homes or condo townhomes, do not hesitate to contact me or my team at Upperside Real Estate at 905-597-9333 or firstname.lastname@example.org .