Condominium vs Apartment Ownership – Which One is Right For You?

Thinking about investing in an apartment or a condo but aren’t too sure which is right for you? We’re about to solve your dilemma in the next three minutes!

 

Both of these have similar architectural formats and living styles. It can safely be said that in terms of physicalities, there isn’t much of a distinction. However, the main difference stems from ownership. To truly make it a long-term lucrative investment, it is important to also consider hiring a reliable and trusted property management company in Toronto that offers the vision, innovation, and experience needed to guide your property ownership needs.

 

How to Tell Between a Condo and an Apartment?  

The difference between the two is quite tenuous and, in many cases, the two terms are used interchangeably.

 

Most apartment units are located in a complex that is owned by a single entity such as a corporation. These individual units are then leased out to tenants. It’s a slightly different ball game with condo units. These are massive property complexes that are chopped down and sold in smaller units. There is no set list of physical attributes for a condo. These could look like anything such as an apartment or a row townhouse. They are managed by that condominium community’s homeowner association (HOA) in tandem with a property management company. The unit itself is owned by an individual.

 

Apartments

Most people are of the opinion that apartments, unlike condos, are something you rent and not buy. The rent payments do not build any equity nor do they entitle the tenant to ownership as this remains with the landlord. Perhaps the biggest shortcoming for a tenant with renting an apartment is that they can reside there for years with nothing to show for it. In terms of remodeling, the tenant has very limited freedom and must obtain the landlord’s permission even if it comes to something as simple as hammering a nail into the wall. While it is a possibility to buy a single unit within that apartment complex, in technical terms, if you purchase an apartment, you’re purchasing a condo.

 

Condominiums

Condominiums are, essentially, the other side of the same coin. When looking to invest in a property, people usually loan and eventually own condos as this is a viable way to build equity in urban settings as opposed to renting apartments. Condo owners naturally have a lot of flexibility to customize the interiors to their tastes.

 

When it comes to remodeling the exteriors such as the building itself or the grounds, these are usually owned by a landlord or the community, and it is likely that some regular dues will have to be paid for their upkeep to the homeowner’s association. In this vein, even if you are the owner of the condo, you will not be able to plant a tree or paint your front door without getting the approval of the association. If you’re looking to find condos on the market, you will most likely locate them in high property value hotspots such as popular vacation destinations or upscale urban settings.

 

The Community Plays an Important Role in the Equation

To sum it all up, the community largely dictates the experience you will have with owning a condo vs owning an apartment. Because condominiums are shared communities and fall under an umbrella ownership, all the residents get to decide issues regarding safety, aesthetics and the likes. If the community is largely occupied by owners, then you will experience enforced cooperation with the neighbours. While some find this restrictive, others prefer the systematism that this arrangement brings with it.

 

Of course, it must be remembered that apartments have to play by the community’s rules too. However, as opposed to cooperating with the neighbours, in this scenario, the landlord lays down the rules and the tenant has little to no say about their application or execution. If you decide to invest in an apartment, it is likely that a majority of your neighbours will rent, meaning that you will have to put up with regular move-outs and move-ins.

 

What is Your Long-Term Goal?

When weighing the pros and cons of investing in a condo or an apartment, the most important factor to consider is where you see yourself down the road. Home ownership is a sizeable commitment and if you feel you’re not up to paying off a condominium for the next several years, renting is probably the way to go. Renting is also perfect for those who aren’t quite financially stable career-wise or have a travel-intensive lifestyle.

 

Whether you own an apartment or a condo, trusted property management services in Toronto can be a huge help!

Mareka Properties Ltd. specializes in commercial properties and condominiums. We offer our invaluable experience in managing buildings, both new and old so that you don’t have to break the bank. Contact us today at (416) 255-7300.

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