The search for a new home is one of the most exciting and eventful ventures of your life. It also opens up a never-ending list of questions, such as where do you want your new home to be, how much you should pay, and whether you want a brand-new build or an older home that’s full of character.

One of the first decisions will be whether you should choose a freehold home or a condo unit. In this post, we’ll talk about everything you need to know about both.

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Why Choose a Freehold?

A freehold home is one where you own both the land and the house. Most people associate freeholds with fully-detached houses. However, there are still a few townhouses that also fall under the freehold category. And surprisingly, some detached homes are actually considered condos! No matter what the structure, the benefits of a freehold are clear.

• Since you own the property, you have far more freedom to do what you want with it. You may still need permits for any major construction projects, and if there’s a homeowner’s association, you’ll have to abide by their rules. However, you are nowhere near as limited as you would be with a condo. If you want to tear down a wall and create an open-concept living space, you are free to do so as long as you have the budget and expertise.
• Owning a freehold home also means no condo fees or special assessments to worry about. When your house needs repairs or upgrades, you can manage them in your own time.
• Freehold homes can be a better financial investment as they often retain and grow in value more than condo units. However, keep in mind that real estate is complex, and there can also be exceptions to this rule.

Thinking of a new home in Hamilton? The posts below can help you find your ideal neighbourhood:

• A Home Buyer’s Guide To Hamilton Real Estate
• Is Hamilton Real Estate Worth It
• Top 5 Hamilton Neighbourhoods For Families

The Downsides of Freehold Property

A freehold home typically costs more upfront than a condo, which means you’ll need more for a down payment, and your closing costs and monthly payments will likely be higher. That said, many people believe it’s well worth the investment to avoid the extra fees associated with condos, especially special assessments. It’s comforting to know that you won’t suddenly receive a bill because there wasn’t enough money in the reserve fund to cover the cost of replacing the roof.

Just keep in mind that freehold homes can also come with unexpected expenses. You are on your own if anything breaks down and needs repairs. There is no condo corporation to call if the roof starts leaking. It’s up to you to arrange and pay for any maintenance the house needs.

Another downside many people don’t consider is the lack of control. You may take meticulous care of your property, but that doesn’t mean your neighbour will. The house next door with the unkempt lawn can impact the desirability and resale value of your own home.

The Pros and Cons of Condo Life

When buying a condo, you own your individual unit, but the outdoor space is shared among other residents. They are often more affordable, which makes them ideal starter properties for first-time buyers. Retirees, downsizers, and some single professionals also love the convenient lifestyle condos provide. If you would love to never again shovel snow or cut the grass, condo life just might be perfect.

When you hear the word “condo,” you may instantly think of an apartment-style building that can have amenities such as fitness rooms and community rooms. That is the most common structure. However, many townhouses and even detached homes are also managed like condos. If you want to enjoy having all exterior maintenance taken care of without sacrificing your outdoor space, you have options! In many ways, owning a condo means enjoying all of the benefits of a freehold with few of the downsides.

Should you downsize to a condo? The posts below could expand your horizons:

• Why Should You Downsize To A Condo In Ancaster?
• Where Are Hamilton’s Best Communities For Retirees?
• What Are The Best Condos In Dundas When Downsizing?

The Drawbacks of Owning a Condo

Owning a condo means you have less autonomy when it comes to major renovations and anything to do with the exterior of your home. Any changes must first be approved by the condo board, which will have rules and bylaws residents need to follow.

The convenience of condo life also comes at a cost. You’ll be responsible for the monthly condo fees over and above your regular expenses. In addition, you may face a special assessment at some point. This happens when the building needs a major repair or update and there isn’t enough money to pay for it. Any shortfalls get passed down to the condo residents who must cover the difference.

Special assessments are one of the biggest deterrents to buying a condo. Fortunately, you can often anticipate or even avoid unpleasant surprises by studying the status certificate before making your purchase. And keep in mind that freehold properties also need repairs and maintenance. Life is unpredictable, and you’ll want to have a reserve fund for emergencies in either case.

For the right buyer, the benefits of living in a condo far outweigh any of the risks. You have so many options throughout Hamilton, Ancaster, and Dundas. With so many different types and structures of homes available, there is a place that perfectly suits your needs and lifestyle.

Are you on the hunt for your ideal new home? Our Hamilton and Ancaster real estate agents can help you find the perfect fit. Reach out to hello@theoreillygroup.ca or call 905-512-5323 to determine your next steps.

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