There is no doubt that condominiums offer a great lifestyle, especially if you consider the amenities and all additional perks. But, even though condos are extremely appealing, you’re probably asking yourself: Should I buy a condo or rent an apartment in Ontario instead?

Every family unit is different, so there’s no one-size-fits-all answer to this question. However, if you have an extra income that’s allowed you to save money, looking at purchasing may just be a better alternative than paying a few months’ rent in advance.

In this article, we’ll share the advantages of buying a condo vs renting property. We’ll share a few elements that potential buyers should keep in mind and explain why buying a condo can give you more freedom than renting the same type of property.

Top 10 Benefits Of Buying a Condo Vs Renting In Ontario

Before going over the advantages of buying condos vs renting, it’s important to analyze your own circumstances. What makes sense for one individual may not be the best for the next person.

Therefore, you should look at your financial and personal goals to ensure that your future plans involve taking out a mortgage, making rental income, and building equity by becoming a condo owner. Once you’re ready to stop paying rent, you can look at your savings, determine what your starting security deposit budget is, and contact mortgage lenders.

Here are 10 benefits of buying a condo vs renting it.

1. Condos Are More Affordable

One of the reasons why some condominiums are considered starter properties is that this type of build is more affordable than standalone or detached houses. This means a lower down payment as well as lower property tax rates, which significantly reduces the burden when compared to other forms of property.

With the above in mind, remember that condo owners are subject to condo maintenance fees, although these contributions help keep the amenities in great condition. You should add this to our monthly mortgage payment costs in order to have an accurate idea of the entire costs of your new condo, including other expenses.

2. New Owners Familiarize Themselves with Owning a Property

As we mentioned earlier, condominiums are great properties for first-time owners.

This is because the condo maintenance fees could cover most, if not all amenities and external maintenance. Homeowners simply have to worry about repairs and improvements to the insides of their homes. Even then, it’s important to note that homeowners have to work with the condo rules, and maintenance fees and follow all set criteria beforehand.

Renters, on the other hand, are not usually responsible for basic repairs and can’t make major improvements without the owner’s consent.

3. Generate Revenues Through Rent

Owning property is one of the best ways to generate passive income, especially if you’re planning on relocating later on.

Buying a condo instead of renting an apartment is a great example. If you can afford the down payment and get a conventional loan, you can eventually rent a room within your condo to cover part of your expenses. In the case your plan is to move, you can rent your entire condo and generate passive income while you travel or settle in a new location.

4. Live in a Great Location

Condo living is all about convenience for the entire family. Therefore, condo buildings and facilities usually have a great location. In other words, buying a condo means that you’ll be living within walking distance from shopping malls, schools, parks, and public transport.

Besides making life easier, owning property in a great location during a period where housing markets are growing exponentially should also be a major factor in your decision.

5. Have Access to Superb Amenities

One of the biggest advantages of buying property in a condo is that it gives you access to a range of quality amenities. This varies from one condo to the next, but condo buyers can have private parking, access to playgrounds, sports areas, pools, community spaces, halls, BBQ areas, and much more.

Keep in mind that there’s likely an annual or monthly payment you need to cover in the form of maintenance fees from the condo corporation. While they represent ongoing costs, buying is still a better price-to-rent ratio as all the amenities combined would cost way more than the additional fees you need to cover.

6. Condos Often Promote a Deep Sense of Community

Even when located in bitter cities, condo properties usually promote a deep sense of community. This is due, at least in part, to the shared amenities and spaces, which create a positive environment for families to meet one another.

It’s important to understand that this is still possible in apartment living. But, most apartment buildings lack the variety as well as the size of the amenities found in condo facilities.

7. Mortgages Freeze the Bulk of Your Housing Costs

In most Canadian cities, the average rent increases every year. Even if you just wait a few years, real estate market booms can increase prices and force you to pay exponentially more on every month’s rent without getting better value.

Condo ownership makes more financial sense because, even though mortgage payments last longer, buying a house freezes the amount of money you’re paying on housing costs. Instead of dealing with increasing monthly rent payments, you can lock in the price of the house, work out the interest rates, and know exactly how much you have to pay every month in the coming years to have your own home.

8. Condo Owners Can Benefit from Tax Breaks that Renters Don’t Get

Yes, condo owners have to pay property taxes, property insurance, and repair costs that can range from minor to extremely expensive.

With that said, homeowners can also enjoy great tax benefits and condominium owners are no exception. For example, qualified buyers can claim tax credits and reduce the amount they pay annually.

9. Condos Allow You to Build Wealth Through Home Equity

Simply put, real estate equity refers to the amount of money your house is currently valued at minus all loan and mortgage expenses. Condo properties have relatively low upfront costs but they still have the potential to exponentially increase in value. This means that a condo can actually help you build equity relatively quickly, which can translate to more money in your pocket come selling time.

10. Extended Flexibility for Repairs and Improvements

Condo properties don’t offer the sale level of freedom as standalone or semi-detached builds.

But, when compared to renting, owning a condo gives you a lot more flexibility to make repairs and improvements.

As mentioned earlier, you’ll have to work with your condominium’s property management company, but you should be able to make certain changes and improvements that you simply can’t make when renting an apartment.

Conclusion

Is buying a condo better than renting? While everyone has unique circumstances, the answer is usually a resounding yes. With that said, having the financial resources to purchase a home and finding the best property at a great price are two huge individual challenges.

If you’re interested in purchasing a condo instead of renting in Ontario, get in touch with Justo today and our team will be glad to help.