Condo vs. Apartment: The Pros and Cons

Choosing between an apartment vs. condo can be a challenging decision. Whether you’re looking for a new place to call home or simply exploring your housing options, it is helpful to understand the condo vs. apartment differences.

Owning a condo and renting an apartment each come with advantages and drawbacks, and your decision can significantly impact your quality of life and financial future. Let’s look into the specifics to understand the condo vs. apartment difference and the pros and cons of each.

What is a Condo vs. Apartment?

A condo, short for condominium, is a unit within a larger building or complex that you own outright. Condominiums are individually owned homes that include shared ownership of common areas, such as hallways, gyms, and pools. When you buy a condo, you purchase the interior space of your unit and a share of the communal elements within the complex.

Condos come with a set of bylaws and regulations governed by a condo board, strata or homeowners’ association (HOA). The condo association is responsible for maintaining common areas and essential services, funded by monthly condo fees paid by condo owners. These dues cover maintenance of shared spaces, insurance, and sometimes utilities.

An apartment is a rental unit within a larger residential building or complex. Unlike condos, apartments are not individually owned; they are owned by a single entity, usually a property management company or a landlord, who rents out the units to tenants.

In an apartment, you are a renter rather than an owner. This means you don’t have the same level of responsibility or control as you would with a condo. The property owner or management generally handles maintenance and repairs, and there are usually more restrictions on modifications and customizations within the living space.

What is a Common Element Condo vs. Condo Apartment?

A common element condo refers to condominium developments where the focus is on shared amenities and spaces. In these types of condos, owners have private ownership of their condo units but share ownership of the building’s common elements. Common elements can include lobbies, playgrounds, swimming pools, gardens, gyms, and multipurpose rooms.

A condo apartment focuses more on individual unit ownership within an apartment-style building. While it does include shared elements, the individual ownership aspect tends to be highlighted more.

Pros of Buying a Condo vs. Renting an Apartment

• One of the biggest advantages of buying a condo is the opportunity to build equity. As you make mortgage payments, you gradually increase your stake in the property, transforming monthly payments into long-term financial value. Property values generally appreciate over time, increasing your investment’s worth.
• Condos can be a wise investment, especially in areas with growing real estate markets. You may benefit from property value appreciation, and renting it out is possible for additional income.
• Condo owners have the freedom to make renovations and changes to their living space, such as updating the kitchen, repainting walls, or installing new flooring.
• Long-term relationships with neighbours can enhance your quality of life. As a condo owner, you also have a say in the governance and rules of the community through participation in the homeowners’ association.
• If you plan to stay in one location for several years, owning a condo can provide stability. This can be particularly valuable for families, providing a consistent environment for children.

Cons of Buying a Condo vs. Renting an Apartment

• Buying a condo typically requires a significant upfront financial commitment, including a down payment, closing costs, and other associated fees such as inspection and appraisal costs.
• Condo ownership comes with ongoing financial responsibilities beyond the mortgage. Monthly homeowners’ association (HOA) fees are required to cover the maintenance and management of common areas, amenities, and sometimes utilities. Condo fees can be substantial and may increase over time. As an owner, you’re also responsible for any maintenance, repairs, and upgrades within your unit.
• Buying a condo typically implies a long-term commitment to stay in one place. This level of immobility can be restrictive if you need to move for career opportunities, personal reasons, or lifestyle changes. Selling a property can take time and effort, unlike terminating a lease.
• While condo ownership offers more control over your living space, it also comes with the rules and regulations set by the homeowners’ association. These rules can restrict certain activities, such as renting out your unit, making specific improvements, or even pet ownership.
• Hidden issues such as structural problems, outdated systems, or unexpected repairs can surface after purchase, leading to unplanned expenses. Comprehensive home inspections can minimize but not eliminate these surprises.

Are you still undecided or need personalized advice on an apartment vs. condo? Contact your local RE/MAX agent today to explore your options and find the perfect place to call home.