Condo vs House: What's the Best for You?

Contemplating the choices of a house or a Apartment There are benefits and drawbacks to both condos and Houses. In this report we have looked at both condominium and home owners to give you and an idea what is best for you. Both examples will help give you an semblance of what works for you even if they don't match your profile exactly.

Hari is thinking about a apartment

Hari left home and rented an apartment. He is a professional who is always on the go. Although some of his buddies have moved in other directions, some of his friends still lease. His apartment is starting to feel closed in and boring. What Hari is looking for is the opportunity to have more room, decorate, acquire new furniture for something that is his own. Cutting back on driving for typical trips such as shopping, going out, visiting is imperative to Hari as he works extended hours. Hari isn't looking for lots of scope that needs money and upkeep as he has no hobbies that need it. Someplace to put clothes and a big wall for his TV are his wants. Simple, understated with new fixtures are the main priorities. Tending to an outdoor area is not something he wants to do.

He requires a apartment that has all inclusive services so if something goes faulty its fixed and at no extra charge. Hari has his own band of friends so doesn't want neighbours that are continually calling. A bit of commotion isn't an concern. Safety patrols and high security are one of his major wants. Safety is necessary. A pool and gym would be an added advantage especially if they are included in the cost as Hari likes to keep fit. It will also save on gym fees. Looking to the future, a parking space would add investment value to the property. Hari doesn’t scheme to be in his apartment evermore, after all. Who knows what the future holds? Apartment life is the reasonable conclusion for a person at this stage in their lives.

Susie wants a house

Susie likes her personal space. From the times at college, she still recalls how it felt having only a single wall between her and her neighbours, and doesn't want any of this anymore. Spending some more time for commuting to work is not a problem for Susie, as long as she has her privacy and enough space around. And as for shopping, she just takes her SUV to the supermarket once a week and load it up. When Susie was little, she used to play around the yard all the time. And this is what she wants also for her own two children, who mean everything to her. Susie and her family also live in a neighbourhood where they know the other families around which is really useful, since there is always someone available to give advice about the best babysitters, school sports or the new off-leash park. And though Susie and her husband Stuart haven’t really thought about expanding their family, it’s just an option that in the future they might have another baby, or maybe Stuart’s mother might need to move in with them later in life.

Therefore they definitely need enough space for the family to expand. Stuart likes to work on his vintage car in the garage and their daughter Jenny is already into playing the drums, which she wouldn’t be able to do in a flat - it gets loud enough in the basement as it is, so Susie’s planning to have it soundproofed and build in a bathroom to create a perfect teen retreat. On weekends, they enjoy having a garden - Susie loves to dig around and pick fresh vegetables as Stuart fires up the grill for a barbecue.

The fact that she owns the land they live on is super important: even if the roof leaks, like it did the previous year after all those storms, it’s still Susie’s roof and she had money set aside for reparations. Occasional home reparations just come with the territory. Susie and Stuart have divided all the servicing work up and each of them knows what his/her responsibility is - for Susie, it's mowing the grass, while Stuart has to take the recycling out to the curb. They just don't mind this work, it's a part of their life. And the safety issue? Susie believes in the new system they just installed against burglars, and in the residents' association that keeps watching what's happening around. In this safearea, she is simply happy and wants to put down her "forever" roots.

Which profile resonated with you the most - Hari’s story or Susie’s story? It is possible you don’t completely match either one - in this case, you may like the benefits of living in a condo town house, which can combine many of the advantages of both condos and homes.

If you decided that a condo could be a better fit, never let the monthly apartment fees, combined with property taxes, mortgage and insurance, exceed 30% of your monthly income. Always look at the economic health of the Homeowners Association (HOA) to see if the monthly apartment fees actually cover pricey repairs to the building, or whether residents have to pay an supplementary premium every so often (this depends on the health of the reserve fund, which your real estate lawyer can proof read for you, as well as the apartment by-laws; sometimes, for grave or unexpected repairs, arrangements are made for special assessments to cover these costs). What is contained in your fees? If there are extra amenities included do you really need them? You may not have a pet but if this is an option check to find out if your building permits them. Also ask around to discover what your utility bills may be. If your condo has many of windows there could be significant heat loss so your expenses could rocket if heating is not covered.

If you decide to buy a house, then we recommend that your mortgage combined with all property taxes shouldn't eat up more than 25 per cent of your monthly income, just to make sure you have enough money left for any necessary upkeeping. You should consider the maintenance expenses and your own ability to keep up with the repairs.

All the responsibility, starting with a leaky faucet and ending with a flooded basement, will be up to you. Think about the financial and physical cost of transportation, which is likely to increase if you will be moving to a satellite. Make sure that you examine a recent home inspection to prevent any surprise problems with the home’s mechanical systems, from wreaking havoc with your budget. For example, a fixer-upper with an ancient furnace, old wiring and insufficient insulation will demand a more or less immediate cash infusion just to make the house liveable.