What Are The Advantages of Owning a Condo?
With the rising cost of real estate in Canada, condo ownership has significantly increased popularity. In 2022 it is estimated that over 2 million Canadians live in condos, up almost 100% from 1.1 million in 2011. Beyond providing an attractive entry price to get into the real estate market, condos offer numerous benefits over single family homes which should be considered if you’re exploring both options. We aim to answer some of the most commonly asked questions about condo living in Canada.
What are the benefits of owning a condo?
Condos present five primary advantages over single family homes:
Maintenance-free living. Condo corporations employ a team of professionals to maintain the property and perform in-unit repairs, so you can enjoy more of your time rather than spending it cutting grass, shoveling snow and fixing leaky plumbing. Condo owners get to experience the benefits of home ownership without the hassles, headaches and required upkeep.
Access to amenities. Owning a condo allows you access to state of the art amenities that would be cost prohibitive to enjoy in a single family home. These may include an indoor/outdoor pool, tennis/squash courts, gyms, saunas or party rooms to host large gatherings.
Lower price point. The lower average cost of a condo versus other forms of home ownership make condos a more attractive entry point into the real estate market. The lower cost is also an advantage for downsizers looking to buy a home without a mortgage and have money left over to enjoy. The average cost of a condo in Canada in 2022 is $398k, compared to a detached home which sells for $749k on average.
Better safety and security. Many condos are protected by either 24/7 hour on-site security, live video monitoring or both. Gated entry points limit who can get in and out of the complex. Concierge service is commonplace in modern condos to monitor who enters the building.
Sense of community. The shared amenities and community spaces that characterize condo living help to foster a sense of togetherness and belonging. Condo developments are typically located close to restaurants, entertainment, and other attractions which allows residents to be in close proximity to more of their favourite activities.
Rooftop terraces are one of the many luxurious amenities offered by condos that are rare to find in single family homes.
Are Condos Good Starter Homes?
Condos are excellent starter homes. Condos come with on-site property management which means that you will have support with maintenance and repairs which is a major plus for first time homeowners. As condos are typically sold at a lower price point than detached homes, they also provide a more accessible way to get into the real estate market. Even if owning a detached home is your end goal, buying a condo is a great stepping-stone because it will allow you to build equity that can be leveraged toward the purchase of your dream home a few years down the line. A condo will gain equity faster than you can save money, which is the reason it is always better to be invested in the market rather than waiting on the sidelines until you find your “perfect home”.
Buying a pre-construction condo is also a fantastic way for first-time home buyers to build equity because the flexible deposit structures offered by most developers allow If you’d like to learn more about the benefits of buying pre-construction, we have a great article on Brighter Day that’s well worth checking out. We also have a helpful guide here on how to buy a pre-construction home and how to maximize your investment in doing so.
What are the Disadvantages of Condo Living?
There are a few potential disadvantages of condo living to keep in mind before making a purchase decision. These factors don’t apply to all condos but are still important to consider.
Low rise condos may be noisy.
Condos with fewer than 6 floors may be built with wood as opposed to concrete which will increase noise levels because there is less building material to deaden sound between adjacent units. If you enjoy the benefits of condo living but are bothered by noise, you’d be better off in a high-rise building constructed with concrete that has better noise-dampening properties.
You may be paying for amenities that you rarely use.
Condos that offer many amenities typically have higher maintenance fees. If you can’t imagine yourself using a lot of the features offered by a particular building, you'll likely be better off taking advantage of the lower monthly fees in a condo or townhome with fewer amenities.
Special assessments due to unexpected repairs.
Special assessments are fees that may be charged on top of your regular monthly dues to pay for major repairs to the common areas of a condo building. Condo corporations responsible for maintaining a building are required to maintain a reserve fund for these situations but sometimes the amount of money in reserve is insufficient to cover the cost of the required work. This typically occurs in condos more than 40 years old because this is when issues with mechanical systems such as central heating, central air and plumbing tend to crop up. Buy pre-construction or in a newer building if you’re looking to avoid this risk.
How long do condos last?
When designing a high-rise condo, engineers in Canada typically use 100 years as a proxy for how long the building should last. High rise condos are built using concrete and steel frames, which are much more durable materials than wood which is used to construct most single-family homes. Many of the condo buildings in New York City are over 100 years old and still going strong.
When considering an older condo, it’s important to keep in mind however that maintenance fees on these types of buildings are typically higher than the fees for newer condos. Particularly when condos reach 35-40 years of age, many of the common elements (elevators, heating and air conditioning, electrical system, plumbing, hallways, etc.) will start to require repair or replacement, and these costs are passed onto the homeowners in the form of special assessments and higher condo fees. When buying a unit in an older building, it’s important to have your realtor check the condo’s status certificate to get a better understanding of the physical state of the building, as well as which repairs may need to be done in the near future. They can also check on the state of the reserve fund set aside by the condo board to ensure enough money has been allocated for important repairs. The lower price point of units old condo buildings can be enticing but these units can come with a lot of unanticipated headaches and incremental costs.
Are condos soundproof?
Not all condos are soundproof. It depends on what building materials were used in the condo’s construction. Condos made using concrete (which includes most high-rise buildings) are generally more soundproof than condos made using wood (typically low-rise condos and townhouse complexes). Interior structural walls on condominiums made using concrete are typically at least 8 inches thick which helps to deaden sound, meaning you are less likely to hear your neighbors in a high-rise condo as opposed to a low-rise structure. After having experienced living in both a low-rise condo complex and a high-rise tower, I can confirm that the condo tower was considerably quieter.
For anyone living in a low-rise building or townhome (constructed with a wood frame) that can hear their noisy neighbors, the following video contains some fantastic and effective tips for soundproofing your home without any tools:
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