President’s Pen: Condo or freehold – what’s right for you?
Anyone who’s ever owned a home will know what those two terms up there in the headline mean. Condominiums include any property, regardless of style, which is registered as a condominium. Freehold properties are those which do NOT have a condominium corporation associated with them. Each property type has its own advantages, and can be the ideal choice for a homeowner, depending on your lifestyle, needs and personality.
Condos, like freehold properties, come in all shapes and sizes, not just apartments: you can find one with a great yard for gardening, an entertainment-sized living room, or extra bedrooms for the grandkids. The main difference between a condo and a freehold property is that with a freehold, the title holder generally owns the property inside and out, including the roof, foundation, and land that the property stands on. With a condo, generally the title holder owns only the interior of his or her unit, as well as a share of any common areas and elements that exist within the corporation description.
Condos generally have a monthly fee associated with them that pays for the upkeep of the common areas, elements and insurance, while freeholds do not. Before you purchase a condo, be sure to investigate what exactly is covered by its fees and investigate the financial health of the Condominium Corporation, as this can differ significantly among condo corporations.
A condo corporation also has the right to create and enforce by-laws (although they must first be approved by the condo owners) governing such issues as pets, noise, and alteration of the common elements.
Condos are great for busy people: if you travel frequently and hate home maintenance (or are simply unable to do it), owning a condo means you may never need to replace a window, shovel snow, mow the lawn or nail down loose shingles. Condos can also be cost-effective for those on a tight budget: they often sell for a lower price than freehold units, and the incremental method of paying for regular maintenance through condo fees is far easier on the pocketbook than coming up with hundreds or even thousands of dollars at once for a maintenance issue.
On the other hand, freeholds are preferred by many people, for a wide variety of reasons. Some people love to spend their weekends working on improving their home, creating gorgeous landscaping, or tackling a “fixer-upper” property. Then there are those who simply don’t want or need the services (from snow removal and grass cutting to fitness rooms and guest suites) that a condo corporation may provide. Freehold owners can do pretty much whatever they want to their home, within the boundaries of zoning and building code requirements. They also have more control over their maintenance expenses, by shoveling their own snow or mowing the lawn themselves, for example.
The Presidents Pen column was prepared by the Ottawa Real Estate Board and first appeared in the January 6, 2010 issue of the EMC community newspapers.
