Whatever your reasons for considering a condo, it's important you start out by knowing what you're buying into. Some people don't have a clear understanding of what a condominium really is. They use the term "condo" as synonymous with "apartment". In actuality, "condo" refers to the form of ownership and has nothing to do with the physical characteristics of the unit. In fact, a condo doesn't have to be an apartment at all. A condo can also be a flat, a townhouse, a link home, or any type of multi-unit residential dwelling or even a commercial property. What defines it as a condo is the form of ownership under which the unit is held.

Condominium refers to the ownership of a specified space or unit in a multiple unit dwelling, plus shared ownership of areas used jointly with other owners. These areas, or common elements, can take the form of a swimming pool, elevators, laundry room, exercise room, front lobby, security station, etc. The cost of operating and maintaining these common areas is shared jointly by the individual unit owners in the form of regular maintenance payments, usually paid monthly. The cost is determined by the condominium corporation, a governing body made up of individual unit owners. Since this is a self-governing process, there is a certain degree of control that maintenance costs are affordable.

Condominium ownership offers many of the advantages of ownership, such as title, privacy within your individual unit and the potential to build equity. It also eliminates many disadvantages of home ownership, such as snow removal, lawn care and the unwanted financial burden of single-handedly dealing with major repairs for such roof or furnace replacement. With a condo, you have the peace of mind that your property is being well maintained, with no hassle or surprises.

Freehold units, on the other hand, offer other advantages over the condominium option. First of all, you are responsible for your own upkeep and maintenance costs, so you have more control over these expenses. If you are buying a relatively new unit, where major repairs and expenses can be minimal in the first several years, this can potentially give you an opportunity to pay down your mortgage quickly and build your personal equity. The downside is you have to handle all the work of either doing the labour or contracting it out. And when large expenses arise, you're on the hook all by yourself. There's a lot to consider. Talk to your Right at Home Realty professional Mike Perrin and get expert advice before you act.